Hey guys Ill earn about 100 000 this year and pay about 30 000 tax as an employee
What s the best way to get the most back .Ive bought 1 pair of boots and about 500 bucks worth of tools
no other deductions can ya put some in super or even the missus super who doesn't work
Can I write a few surfboards of as some sort of expence
Cheers

Only 30k in tax ????
mate you should be paying 40k so me and the misses, 7 kiddies can get a pay rise in my dole cheque and that way I can buy a new windsurfer

You say you earn $100K p.a.

You could;
a). Buy an investment property in an area that will experience good capital growth using interest only finance and keep the place tenanted. The majority of geared investment property holders earn around $80K in Australia so if you get a deposit etc together you should be sweet.

b). Same as a). but spend more and get a place near something of interest ie. beach, inner city, Mountains etc and put it on Air BnB and don't declare the income to the ATO. If the ATO call centre start asking questions say that you have lots of friends who visit from overseas and they would feel bad not contributing to meals etc.


c). Start a mobile dog and cat washing/grooming business. Australians spend a crazy amount of $ on their pets and with less people having kids, pet care and welfare is a growth industry. Pay the wife to run the business and if you have kids employ them to wrangle the clientele and wash them.

d). Start a business that allows Uber drivers to deliver stuff to houses when not carrying passengers, like pizzas, groceries, hookers, wine etc EDIT: if you are in NSW or Qld or maybe WA after the 18th June then this may not be an option.

e). Import performance enhancing drugs and supply AFL teams. Apparently there won't be any real legal repercussions for doing this and you will become very rich.

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bigtom said..
Hey guys Ill earn about 100 000 this year and pay about 30 000 tax as an employee
What s the best way to get the most back .Ive bought 1 pair of boots and about 500 bucks worth of tools
no other deductions can ya put some in super or even the missus super who doesn't work
Can I write a few surfboards of as some sort of expence
Cheers

I'm in a similar boat.

We bought the investment property but made the mistake of buying in both names, so I only get 1/2 the tax benefit! Silly mistake as my wife doesn't earn enough to pay tax!

Worthwhile getting some advice so you don't make basic mistakes like this. Doesn't worry us too much these days, as rents have gone up so much, it virtually pays for itself, but we still get deductions for depreciation etc.

The other way to get a significant benefit is to somehow claim your car or a portion of it.

Im lucky as I claim 95% and a car allowance is shown on my pay slip.

Funnily my wife drives the same brand of car, and my car seems to get serviced a lot, if you know what I mean.

^ Not necessarily a bad thing. Come sale time it'll pay off as 1/4 of the profit will go to someone that has a base salary of $0 (the other 1/4 is yours, the other 1/2 is tax free).
Or, when it becomes positively geared, the same thing; 1/2 of the profit will be in your wife's name.

As for "saving" money by spending it on tax deductible items you don't need I can only recommend not spending it on things you don't need in the first place.

Between now and 30 June the only thing you can really do is salary sacrifice your entire June month's salary into Super - it'll get taxed at 15% instead of your marginal rate of tax. Of course, it means you'll have no income in June but if you can take the cashflow hit then it's worthwhile. Maximum amount you can contribute pre-tax is $30k for the 12 months to 30 June 2015.

Another option is if you don't have Income Protection insurance and you think you want some then quickly get it in June for the next 12 months and pay the entire year's premium before 30 June - that premium will then be tax deductible in this tax year. Of course, it's only "saving" you money if you want the income protection insurance in the first place.

Borrowing to invest - whether in property, shares, managed funds, whatever, is a longer-term wealth creation strategy in which tax plays a part but not something you can save a quick bit of tax in the next 3 weeks before the end of the tax year.

Buying an investment property is one of the common ways to shed some tax burden. However, I would advice strongly not to jump in unless you want to commit yourself for a change in lifestyle. For a start, the spare coins floating around at the bottom of your wallet will no longer be there as they will be used for paying off the loan.

The current interest rate at around 5-6% is very attractive to borrow. But please don't be fooled into borrowing big because it is just s likely to go up in future. When it does go up substantially, you may find yourself overstretched. Some advisors suggested that a prudent way is to plan for a higher interest rate than what it is now, say add an extra 2% on top, at 8%.

You also want to be sure of your employment situation. Are you likely to be making good money for the next 10 years at least? If not, then in a bad year, you may be struggling to meet the repayments. Worse still, if you are unable to work, then you may lose the lot !

As much as we all like to think the sun will always shine, but it doesn't. If you are in need of cash, a large amount of it in a hurry, you find that selling a house takes a long time. Shares are more liquid and they can be converted into cash much easier than properties.

The property markets in Sydney, and to an extent, Melbourne, are very hot. Some top gurus in the RBA even publicly declared that Sydney is more or less in a bubble. So to buy high now is a foolish act. I suggest look anywhere but these two cities.

You need to form a financial strategy, and a long term one at that, to ensure a secure financial future. But please don't rush in straight away just because you are paying a hell of a lot of tax right now. A well planned and carefully executed financial strategy will more than recoup the lose taxes eventually. Patience is the key, I believe.

either way the only way to reduce your tax is to spend more on other **** you dont need what comes in goes out the tax man will take his cut
nothing surer then death and taxes its actually impossible to reduce the amount you pay in tax all you are doing is reducing your income

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bigtom said..

Donate a sizeable amount to some charities (eg: Salvos, Alzheimer's Research). Not only is this tax deductible, it will give you a warm fuzzy

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Darkspi said...
either way the only way to reduce your tax is to spend more on other **** you dont need what comes in goes out the tax man will take his cut
nothing surer then death and taxes its actually impossible to reduce the amount you pay in tax all you are doing is reducing your income

Salary sacrifice pre-Tax to Super is the only exception.

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bigtom said..

Can I write a few surfboards

That could only happen if you join Windsurfology Church ( or create one if doesn't exist yet).

Here is how it works.

You give/declare all 100% of your income to the Church.

Church as charitable institution don't need to pay anything.

so

Church instantly give you back 80% and keep remaining 20 %.

Now as a Windsurfology Church member , there are some specific obligations.

You will be required to attend at least once a week our Windsurflology Services,

Services are held on nearest convenient water way if is windy.

If it is not windy or you simply don't like wind you could join SUPology Church,

Their services are held when is not windy.

" LETS WIND STAY WITH YOU "