Hello everyone, I have a situation where I have to pay a lot of taxes this year. The interest earned on the money that was feared in the bank has been paid as interest without paying taxes. Please note I have paid off home loan and waiting for an investment property to buy.
Need your advice or Anyone here with paid tax expertise?
Thanks
Either way you can't change the fact you earned interest. Tax or not, you have $50k more than you had before. Use part of the $50k to pay the tax. Not many deduction to claim against interest income other than measly bank fees which won't make a dent.
A personal super contribution (if you have space in your concessional cap this year or prior years) is probably your best option, as the amount you put in can be claimed as a tax deduction (noting you pay 15% on the contribution), but you have to be comfortable you won't need that money until you retire.
Just done this for my wife, but you'll have to be quick. Most super funds have deadlines which will be now or early next week.
https://www.ato.gov.au/individuals-and-families/super-for-in…
most super funds recommend today to be the last day for the contributions to make the cut off
LOL the copypastas
so your preferred situation would be that the bank had withheld the tax?
if you just pay the tax now this will be the same end result.
why the concern now about tax minimisation when you would have been happy if the bank had just taken the full amount?
is there some sort of office competition for the smallest tax bill?
Not to be a downer or financial advisor but just over six figure salary and $50k interest from savings is not a lot. To me anyway.
Just pay the tax on the 50k, which would be around $18.5k. Unless you have your own business or already have an investment property, its pretty hard to "minimize" tax when you are just an employee.
You can put it in super and only pay 15% tax.
This is starting to look like the high yield bmw guy, works in finance but doesn't know how to manage their finance or taxes.
So you making 180k?
Tax saving tip? Earn less. It’s a percentage of income, so if you want to pay less tax, earn less income. Simple af duh
$50k in interest, so $1m sitting in a HISA then. You should be doing better things with that sort of money.
Are you on the tools out of the office or all office based, IE, How do your client react when you turn up for an appointment in an X5?
Perhaps invest some money of that money in another more client specific car and save the BMW for the Golf course trips.
If only there was a professional that could assist in tax stuff, for accounting purposes…