Hi All,
I am about to complete 10 yr for my existing employer and as a token of thank you, I have been permitted to claim $11,000 worth of expenses. Yes, my employer is a generous one! :)
To be frank I wanted cash but half the money would be gone in taxes if I took cash.
I just need a few ideas people can share where I can buy something and then sell it back for cash.
Any ideas in this regard will be highly appreciated.
Thanks.
BG
Sorry stupid me… I didn't know that it can't be claimed!
That's for the company's accountant to worry about. FBT is paid by the employer.
was more questioning would employer paying FBT eat into the 11k allowance
Get a new car!
Down payment for a new car maybe…
Check with the employer first with say, the gold, before you buy it. Last thing you want is for them to deny it because it's not a genuine expense in their eyes and you store it in your safe waiting to offload it and get robbed.
Honestly I'd just pre-spend a modicum of that $11K on a tax accountant for some qualified advice.
Laptop or mobiles or items that ate considered otherwise deductible to the employee are exempt from FBT. This depends on what u do for work
Must fall under s8-1. https://iknow.cch.com.au/topic/tlp227/overview/otherwise-ded…
$11,000 in woolworths egift cards at 5% off, then sell it in the classifieds section slowly.
If it was me I’d ask for prezee simply because it’s easier to manage balance, split it down super easy, and huge range of choice eg Cole’s Woolies Amazon ebay. And then i recommend just using it yourself.
That should be enough for a weekly shop
And add 30 cents for each can of coke
I would imagine it will need to be something the company could conceivable deduct as a legitimate expense.
If they reimburse you for anything not 'work related' it would be the same as any other bonus - ie, taxable.
Cigarettes & whisky
I am in flavour country
And wild wild women
wild women
on this tight a budget? idk maybe have to check ali express/ wish
They're going to be paying a whole whack of fringe benefits tax on it, so why not work out what that will be and get it added on to whatever they pay you?
Pre paid Visa cards will be easier
Rolex watches…. because they always go up in value right?
I hear daniel wellington goes up even more
sarcasm
4x 4090
I was thinking that buying gold may be an option.
Um what?
How would that be related to undertaking business?
Sorry stupid me… I didn't know that it can't be claimed! Thanks.
This is a non-cash bonus. It doesn't have to be related to undertaking a business.
Business will still be subject to FBT and thus OP may need to make a contribution though.
Invest it into yourself. Are there courses or training that you want to do?
If not and you need the money, how about a fuel card to use the money instead.
how about a fuel card
OP doesn't drive an EV so good call.
How do I know that?
If they did, they would have mentioned it, relevant or not.
Hah
If they did, they would have mentioned it, relevant or not.
Damn straight.
OzBargain Regulation 101.1: An EV owner must declare their EV ownership in every forum topic they create regardless of the relevance to the topic itself.
I'm so glad you guys brought it up, I wasn't sure of the best angle to bring up how handy it is to charge at home.
If your company doesn't trade in gold they won't be able to launder that as an expense. Perhaps you'll be able to claim travel expenses ($11K holiday), equipment normally used by your employer or inventory items your employer normally sells. Thing is, if they were truly generous they'd simply make an $11K bonus payment.
A bonus would attract tax. "Expenses" is a way of getting out of tax.
Yes, the bonus does not work. It gets taxed! I will roughly get half of that amount.
At end of the financial year you'll only have paid tax at your marginal rate
Agreed, but an expense claim restricts OP's net benefit. An $11K bonus could be paid directly into superannuation for maximum yield.
Ok off the top of my head what about
Power tools
Laptop or pc and peripherals like a printer
Tablets
High end headphones
High end camera/lenses
High end office chair
Only thing I can add to this is mobile phone, but Snr Jimothy is on the right track.
doh how did i forget the most obvious.
flagship iphone pro or samsung ultra max'ed spec is 2k+ already
Any way OP can "double down" on this via Salary Sacrificing and being reimbursed via Expenses.
No
Apple Mac Studio computer and Studio display for $10000 from Good guys, JB Hifi or Harvey Norman. Don't open them. Claim with receipt through work. Then return for store credit. Buy best TV or sound system, whatever you like.
Great idea… I should be able to do this with Costco as well! They even refund the $$ !
If a refund in cash is done. Then the money received by Costco wouldn't equal the amount that your company has said they given to them. Potentially affects taxes and GST paid. I'm sure it wouldn't be a problem and it would only come up in a absolute bend-over of an audit. But to keep it 100% legit, would be by credit.
I understand. Thanks for the advice.
I have some magic beans I’m willing to part with for $11k
Haha! Thanks for the offer! lol
I have some magic beans im willing to part way with for $11k $10995 and I will throw in a mars bar! ;)
Become a public servant and be free from shackles…
What do you mean by this? I’m stupid
This means you are qualified to work for the government?
How is that free from shackles though
@Camry no headlights: Only people who worked in the private industry all their life can answer this question when they work with govt agencies where cost control was never hear of.
In the private industry cost control is the aim of survival.
Maxed out MacBook Pro 15 inch, in black.
macbook pros don’t come in 15 inches only fourteen or sixteen
Well get the 16 inch.
Not for $11k you wont… I was curious … A$12,498.98 phewww
Probably the worst idea because the entire amount is locked into a single device that probably only 0.00001% of world's population needs it (or is stupid enough to buy an Apple device this expensive)
Gift cards for stuff you commonly buy.
I spend ~$7k/yr at woolworths. $2k on fuel. $2k at Dan Murphys. etc
It really depends what your employer defines as an expense. Would you be better to spend it on airfares, accommodation and meals?
ETF shares
Is there a 'conference' you and your partner would like to attend overseas? Tax write-off for the business and a lovely holiday for the two of you. You just need to find a conference you can attend a day (or part thereof) and off you go!
Thanks for the suggestion. Great idea.
The where what how kinds rules need to be satisfied, your employer would need to keep reciept and itinarys of what u done for the accountant to process. If by the book. No alcohol on the books and trip proportionally must he reasonably for work
LEGO
Apple vision with 32GB ram would get pretty close.
Then just return it in their 14 day window!
This is the right answer (high value item, small, easy to transport, easy to return)
Apple has a great return policy
You will need to find something that is not cash or cash equivalent. Things like gift cards and Bitcoin aren't allowed. It probably doesn't need to be one thing either if it's similar to employers I've worked for.
NFT
4x Top of the range smartphones from apple, Samsung at full retail price /s
LOL don't ever do that - can't people see how ridiculous it is to pay $2.5k for one phone…
Business class air ticket to Europe. Cancel and refund.
Yeah refund back to the company card
work related stress therapy…
like hookers and cocaine
Rather than cash, choose an experience, like a bucket-list holiday.
1 bottle of Hibiki 30
Niceeee!
11k would just be one Rolex watch.
I would go this route as it's likely to be claimed as an expense for recognition of your service at the organisation.
And yes it can go up in value….over the years. But sounds like you want cash now…
My 2012 Omega is holding its value today and can get more if sold
mmm…. I will think about Rolex! thanks for the advice.
Not otherwise deductible. Your employer pays 45% tax on this and if smart would reduce your payment by this amount.
Better to just get paid a salary if so
I just hit 10 years, they gave me a $100 gift card for their own business. FML
You got a gift card?
/calls HR to complain
15 years with the last place got me a redundancy :(
10 years with the current one coming up and I expect about zero.
Newly released high demand tech items that retain their value.
EG, latest iPhone, latest macbook, latest ipad etc.
Don't open them, sell them on Ebay for 90-95% the purchase price. Boom, 10K cash in your bank account.
a small car
I think you'd have to settle for a small motorbike.
Am I misunderstanding something - how is your employer the one allowing these expenses if they still need to be legitimate work related expenses? At the end of the day, you are still the one responsible for what you claim in your own return. Unless they are allowances in which case you would still be taxed?
I don't think they need to be work-related. I will check with the Account team though. Thank you.
what job is this? (vaugely - dont say your company name….)
What would your taxable income be for the year… being in year 10, I’m guessing you’re not on 6 figures (but can’t assume these days).
An 11k bonus may not attract much tax depending on your marginal tax rate. Yes, the ato will automatically take a massive chunk on receipt (payg), but you may find you get the majority of it back (refundable) when you lodge your income tax return…
You may end up paying 19c to the dollar (I.e., lose 19% to tax)… but you could easily lose 19% in the process of buying and selling items (just to convert to cash)…
It’s another matter if there are things that you were going to buy anyway (and those items are allowable deductibles).
A conference (holiday) or vehicle could be a good idea… there’s always tech: phone/laptop/tablet/smartwatch/headphones…
OP is not in year 10, the reward is for 10 years of service.
thanks for the reply, @BartholemewH. I was about to say the same thing. 10 yrs of service!
Whoops, misread. Ok, likely to lose a far bit to tax if paid out.
"business trip" to Europe
If you need to bury it into things the business can hide… erm I mean into legitimate business expenses… computer, phone and tablet can make a big dent. New Tyres? That business trip sounds like a great idea too.
What type of business is this? Mining or finance?
You could buy a few things online from Apple for pick up, say it's for your family. Then when Apple says it's ready for pick up, you cancel the order for a refund. Then your $11k reimbursed to you is just cash for you to use.
Bitcoin. Return flight to El Salvador is under $2000 from Sydney. Fly to San Salvador, convert Bitcoin into USD, return. Subtracting the $2k, that's $9k in cash.
how is the company going to write this off as an expense?
and does FBT apply to this? (wouldnt know being a common serf)