What Should I Be Purchasing as a Tax Write off?

purelysam on 14/07/2023 - 21:54

Whilst lodging my tax return for the financial year I noticed that you could deduct income protection insurance (if paid privately and not from a super fund). I thought this would be a fantastic way to claw some money back next year instead of paying through my super. As someone relatively young I've never really considered many deductions but as I am starting to earn relatively okay money thought it would be a good time to learn…..

So TL;DR what are common sense things to purchase as a tax write off?

Financial

Comments

  • MS Paint on 14/07/2023 - 22:00
    +9

    fantastic way to claw some money back next year instead

    You have to spend a lot of money to get a little bit of it back. Tax deductions for PAYG workers is not all it's cracked up to be.

    Just donate to your favourite charity or if you have a low income earning spouse then contribute to her super.

    • Sinnerator on 15/07/2023 - 10:14

      set up a family trust, allocate your wages across several family members and gain benefit from their tax thresholds?
      IANAL
      IANAC

  • mskeggs on 14/07/2023 - 22:05
    +11

    I find the idea of “tax write off” as a motive to buy things a false economy.
    It’s a bit like cashback - would you buy the item anyway? If yes, by all means proceed, but if not, why buy it with a 37% (or whatever your tax bracket is) discount?

    I don’t especially think income replacement insurance is that good a deal, the products seem expensive, have conditions (2 years duration, for example) and hoops to jump through. Especially bearing in mind you likely have TPD insurance via super.

    • mskeggs on 14/07/2023 - 22:10
      +2

      That said, I’ve sometimes looked at a phone or laptop I have fully depreciated and thought maybe the tax saving on a new one makes a good deal worth buying when it is added on top.

    • AustriaBargain on 15/07/2023 - 10:40

      If you run a business then it may make sense to buy a new oven or vehicle in one tax year instead of another. But for the person, yeah unless it's something you would buy in a few months anyway in new tax year then you're better off paying the tax and putting the money in your pocket.

      • Zephyrus on 15/07/2023 - 11:05
        +1

        The key to that is you would have bought it anyway, one way just is cheaper than another.

        Some people buy stuff on the basis that can make it tax deductible which almost never helps.

        • AustriaBargain on 15/07/2023 - 11:18

          Also sometimes can be used as an excuse to buy something you wouldn't normally buy anyway but want to justify buying.

    • Drpepper666 on 15/07/2023 - 13:01
      +5

      Lots of people think a tax write off means free stuff lol

  • Malik Nasser on 14/07/2023 - 22:10
    +3

    Education that is related to your job.
    It allows you to increase your income in future (through adding further value to your company), and can be tax deductible.
    https://www.ato.gov.au/Individuals/Income-deductions-offsets…
    https://www.ato.gov.au/Individuals/Income-deductions-offsets…

  • Jimothy Wongingtons on 14/07/2023 - 22:18
    +6

    it’s a write off!

  • Darude Sandstorm on 14/07/2023 - 22:26

    Car, Education.

    • jv on 14/07/2023 - 23:40

      Women, Booze…

    • jv on 14/07/2023 - 23:41

      Education

      Often is not tax deductable.

  • Vulgar on 14/07/2023 - 22:44

    Ideally you'd consider things you already purchase. Internet, electricity and stationery if you work from home.

  • Tech5 on 14/07/2023 - 22:46
    +3

    A "discount" on a unneeded item or service really isn't a discount, is it?

  • Mokr on 14/07/2023 - 22:50
    +2

    Want a tax write off. Add in some car trips between car places.

  • Meho2026 on 14/07/2023 - 22:52
    +3

    I buy a negatively geared investment property every July

    • jv on 14/07/2023 - 23:28
      +2

      I build my own…

      • Chandler on 17/07/2023 - 10:39

        With blackjack and hookers?

  • WoodYouLikeSomeCash on 14/07/2023 - 22:55
    +2

    Your just gonna end up spending more money?

  • jv on 14/07/2023 - 23:28

    I thought this would be a fantastic way to claw some money back next year instead of paying through my super.

    Might as well donate your money to a registered charity…

  • Jumpingmanjim on 15/07/2023 - 07:56
    +1

    Bikies?

    • HardQuiz on 15/07/2023 - 08:21
      +1

      The well known charity.

  • Shadowsfury on 15/07/2023 - 13:14
    +2

    You might die a little after getting a quote for such insurance outside of super - I certainly did.

    Its better coverage, sure, but also exponentially more expensive.

    • purelysam on 15/07/2023 - 15:17

      yikes you aren't wrong haha

  • orangetrain on 15/07/2023 - 15:19
    +1

    Set up a charity in name of spreading religion, donate assets to it. Tax write offs there. As director, you will need accommodation, food, etc as part of your benefits package along with a small salary. Charity pays for your trips to other churches that happen to be near beaches, even overseas. Bonus: pay less/zero land tax and council rates.

    Get your company to hire the charity services and let you go.

    Doesn't everyone do this nowadays?

  • MITM on 17/07/2023 - 19:53

    Get PCW to do your tax return.

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