No one wants to give the tax-man more than the minimum.
eg I read about some guy on whirlpool who "salary packaged" nearly all his pay as "meal entertainment" and then somehow funnelled it out, though that's leaning more towards "tax evasion" than "tax minimisation"..
What Are Some Ways You Have Been "Minimising Tax"?
2real4u on 03/01/2015 - 18:22
Last edited 03/01/2015 - 18:23
Last edited 03/01/2015 - 18:23
Comments
Offset simply means you have borrowed less money, there is no interest therefore nothing to declare.
Not sure where you have been misinformed but my tax guy (being ex ATO) didn't bat an eyelid when I told him where I had placed my savings during our yearly meeting nor was there a report generated from my bank as previous years in regards to interest accrued.
I found this for you after finding no mention on ATO website to back your claim, hope it helps:
http://launchfinance.com.au/the-pros-and-cons-to-an-offset-a…deleted
Become your own legal religious group or church. Learn from the masters of tax minimisation such as Catholic Church, Scientology, Seventh Day Adventists, Hare Krishna, Buddhism and many more!!!
Telecommute-
I now telecommute to work 3 days a week. so a portion of my electricity, internet and phone is a deduction. also any new computer equipment, stationery, etc that I need for working from home.Study-
Also I am studying a uni course which my work has approved as a course that would benefit me in gaining a better position at work. so my uni fees are tax write off as well. also all my books, stationery, photocopying, any transport between uni and work. sure my hecs is not looking that great but studying a "work approved course" will allow me to get a better paying job in the future and I can enjoy some reduced financial cost -through tax reduction- at the moment.I don't think you can claim uni fees as a deduction if you are putting them on HELP. Worth confirming with the ATO.
my tax accountant explained it to me. and i promptly forgot the details. I know that he looks up my course fees and uses that figure in my return. -somehow.
I don't think you can claim uni fees as a deduction if you are putting them on HELP
You can claim the uni fees because you have incurred the expense. How you fund them (credit card, HECS debt, personal loan, cash) is irrelevant for tax purposes.
lol no you can't, whoever told you that is terribly wrong and i hope you get audited.
Heres a few exerts from the ATO site
" the following expenses are deductible - tuition fees, including fees payable under FEE-HELP (this does not include expenses paid under HECS-HELP)"
"You cannot claim contributions you, or the Australian Government, make under HECS-HELP or repayments you make under the Higher Education Loan Program (HELP) or the Student Financial Supplement Scheme (SFSS)."
"You cannot claim a tax deduction for the following expenses:
self-education expenses such as tuition fees paid to an education provider by you or the Australian Government under HECS-HELP"As of a year ago when I last had to check this for claming my masters, you could claim uni fees, if it was directly related to improving your current employment.
Its all goes on HELP.
post grad is completely different to underrgad. When claiming undergrad you need to prove a causal link in improving your current knowledge in the workplace you're in, it can't be to improve your employment prospects. If its added to your HELP debt you cannot claim it under any circumstances if you're an undergrad.
For masters its much easier to satisfy the requirements
@tohara:
If I have a direct link between degree and employment but didn't pay up front or pay the university ie let it slip into my HELP loan but then paid for the loan in the same financial year, would this deductible ?Ok - did you just learn this yourself or did you assume the person was talking about undergrad?
You can claim a tax deduction for Masters degree paid for with Fee Help, if course has sufficient connection. Please fix your post so it does not misinform people.
https://www.ato.gov.au/Individuals/Income-and-deductions/In-…
Well thats not very nice. You might notice i was reply to PBG in my initial response not you
Good question. Ask your Accountant .
I would say it would not be because the amounts you paid were to the government and not to the tertiary institution
My responses stand. I only mentioned FEE-HELP once to say they were deductible. Regardless HECS-HELP and FEE-HELP are not the same thing. http://studyassist.gov.au/sites/studyassist/helpfulresources…
"HECS-HELP is only available to eligible students enrolled in a Commonwealth support place studying a higher education qualification. FEE-HELP is only available to eligible fee paying students undertaking a higher education award course."HECS-HELP is not deductible under any circumstances further evidence by this exert from TR 98/9
"Course or tuition fees incurred in attending an educational institution or attending work-related conferences or seminars, including student union fees, are allowable under section 8-1. However, you cannot deduct a student contribution amount paid to a higher education provider under the Higher Education Support Act 2003 : paragraph 26-20(1)(ca) of the ITAA 1997. Such payments are made by a student to cover the cost of a course of study at a tertiary educational institution. Repayment amounts for a Higher Education Loan Program (HELP) debt or a Student Financial Supplement Scheme (SFSS) debt are also not deductible: paragraph 26-20(1)(cb) and paragraph 26-20(1)(d) of the ITAA 1997, respectively."
This ruling deals with all things self-education related
http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR989/nat/at…
Thanks for clarifying Tohara. I also hope that all Australians that have defrauded the Australian people get audited and caught. There is no room in our society for criminals.
- anything computer related, speakers, ect.. is tax deducable for me.
- i try buy thngs under $300 to depreciate them in that year.
- negative gearing investments
- if you work from home (assuming a computer based job) you can claim a percentage of: internet, electricity, phone, computer.
- private health insurance
I am claiming all of my Eneloop Batteries, logitech speakers and mices :)
I asked my accountant about discretionary trust, and she said that it is only worthwhile if you own like 8 properties…not sure if this is true…
Not true…
Trusts are only beneficial for asset protection and income splitting. In that order. Coming from an accountant that has multiple discretionary trusts…
Thanks.
For this type of trust to be worthwhile, how much combined income should we have? And assets net worth?
Where about are you located?
CheersGenerally speaking only congngo:
It's a little more than working out combined income and assets to be worthwhile…also too remember to use a trust if you are on salary and wages that income is fixed to you and does not involved the trust (not sure if you realise that).
As I said it's asset protection and income splitting in that order. And when I say asset protection, i don't necessarily mean 'transferring in' property into the trust as sometimes you can be cutting your nose to spite your face with costs (cap gains, stamp duty etc). It can even be to protect assets outside the trust from the activities you perform inside it.
For example take a builder who is say of higher risk. If he was a sole trader i'd be pretty concerned so in response you would set up a discretionary trust with ideally a corporate trustee giving the client protection. Althought not 100% foolproof, definitely provides more protection than if a sole trader. Regardless of whether he makes $1 or $1mil, it only takes $1 to be sued so hence why the structure.
Take for example though like a web designer. Risk is relatively minimal in comparison to mr builder in the above example. So a trust for the sake of asset protection is quite overkill IMO.
When it comes to income splitting it again is different for each individuals situation and there isn't really a 'one size fits all' situation. But once again as a very broad general rule of thumb, if you are making enough money in a trust that you have to be registered for GST then usually we consider it. But once again, very very broadly speaking here…
lol get a new accountant.. what a dud..
How about starting The Church of the Latter Day Dude, Dudeism in Australia? Its a proper religion in the US!
BTW - the reason why you are paying more tax is because you are making more money.
According to the government's budget estimates, only about 400,000 Australians will pay the high income surcharge which now applies to those earning more than $180,000. It suggests a lot of wealthy people are using trusts and investment structures to lower their taxable incomes.
The ATO has different rules fo deductions depending on your occupation, so it's worth checking the ATO website.
Sadly, your average PAYG office worker who surfs OzBargain at work has rather limited options to minimise their tax :(
The key to minimising tax is through creating wealth. Simples
You sound like a newly graduated financial advisor.
No. Actually have been an accountant for over 6 years with my family of accountants who have been practicing for over 40. Not talking out of school here…talking on fact. Wasn't trying to be cryptic with my comment either, creating wealth is the best way. And creating wealth doesn't have to involve a financial advisor FYI. It's up to you to decide where you are comfortable creating it.
'The key to minimising tax is through creating wealth.'
You weren't trying to be cryptic? That sentence sounds like something on the front of a financial self-help book.
Be more specific. How does creating wealth minimise tax?
Through the negative gearing system. Negative gearing being the allowance of a deduction by investment losses (i.e. wealth creating). By borrowing to put towards an asset that will grow for you whether it be shares, property, managefunds etc on one hand you are creating wealth whilst on the other your reducing tax. It's win win.
@bemybubble: Ok but negative gearing is about borrowing money for investments. Investments may or may not create wealth. So maybe you should have said "The key to minimising tax is through negative gearing".
you 'could' buy tax deductible items related to your job, can be small things like office items, tools, computer items, clothes- whatever relates to your trade.
buy with a proper tax invoice and use 5% rebate debit card to purchase these items (if you can get it)
then wait til 'next financial year' and sell them on ebay (BNIB unused of course!)- as might fool the ato but not ebay!
choose items that will return above say 80% when sold (you would never go above $300 items or a set of items that are above $300 as these are considered assets)
even sell the items to your work mates, but dont give em your receipt!Not about to share how, but I'm making about $2,000 a year through interesting tax minimisation. work uniforms, home office, home phone and internet, work km', dodgy self education, the sky is the limit.
And you are proud of that???
yeah why not????
Lemme guess, you claim up to the 'no evidence required' limit for all of these?
FYI, you will actually need to show how you worked out your claims if audited. This can include the ATO asking your employer, for e.g. if you used your car for work purposes. And if the ATO isn't satisfied, you'll cop a bill, interest and a fine. Happens often.
Offset interest is still considered income.
Be careful with the prefill reports, especially when doing your returns early in the f/y before the banks have had time to communicate the interest figures to the ATO, in my experience they are often wrong and the ATO will end up making a lot of money from people who assume they are correct