Rags 2 riches!
Tax return any tips for next year
Got my return back today I paid over 10,000 and got $200 back I`m kinda fumming but am settling down now, whats the best tips from the wise old folk?? what ways are there to reduce the salary to lessen the taxable income, legally of course??????
Thats Dr to you.....
If you are salaried then there is nothing much you can do.
Just keep a track of work expenses and the like. You can always invest in share and take advantage of their favourable treatment, but thats a case of spending money to save money, and it might not always work.
$10k and $200 back? Try $40k+ in tax and still owe $700 which I managed to get down to $280 with deductions.
If you have a degree or trade and are qualified enough, set up a company and enjoy a 30% company tax rate and deductions galore.
One of my supervisors did this, set himself up as a consultant. $450k a year in company income, pays 30% company tax. He employs his wife as a bookkeeper and pays her $35k, pays himself $35, so the tax they pay on the combined income of $70k is sfa and that $70k is enough to pay the bills and live, then dumps the rest into self managed super term deposits so he minimises the tax payable on the rest.
He deducts just about everything he can - even portions out all the utilities bills to his office at home. Gets a new company car (usually an audi or Lexus every 3 or so years as well).
Thats my plan.
No reason to pay the tax man more then you are legally required to.
Last edited by MasterOfReality; 01-09-2009 at 08:29 PM. Reason: Clarify some details
Infidel Bear
Mini Putt 2 Champion!
Heres a wise tip.Originally Posted by whiteknightVR94
Speak to an accountant. Listening to what people here do will probably just land you in hot water.
"Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind."
- Theodor Seuss Geisel
Tells it like it is.
Lol - I would be happy if my tax bill were $20k and over the moon if I could get it to $10k. Minux and MOR are spot on. Unless you are totally daft paying tax generally means you are making money which is a good thing.
Reaper
<---Brad Quaid = internet stalker
I managed to break even with the tax man. Estimate said i owe them 26 cents. Came back a big fat zero. Knocked about 5k off my HECS/HELP debt as well which is always nice to see drop.
I don't know many people who actually get excited around tax time. Most either break even or pay money.
I'd be happy to get the $200 OP got, but it'd probably mean something was wrong if i did!
Make the stupid stop!
Ask an Accountant. Deductions and rebates are dependant on your profession.
My mum went and did a tax course and she does her friends and my friends taxes and its bullshit the stuff you can claim on without reciepts. she got one mate of mine like 3000 back.
Nil Bastardo Carborundum
Definitely use the services of a tax professional. I did a rough run on my tax this year using E-tax and because of termination lump sums and capital gains on land we sold, the preliminary figure saw me paying ol' Mr. Tax man overf $22K.
The tax agent turned this around a bit. A small refund.
Tax laws are too complex for the average Joe to really master, unless your earnings are very straightforward and you have little or no legitimate deductions.
JCCC Warrnambool
I got mine back today...
8k and i got back $1105
Best advice... Get someone else to do it lol.
I used H & R Block for a fee of $135, took 2 weeks
SILVERFOX
I pay an extra 30 bucks per fortnight extra in tax, I don't miss it, and every year I get back at least a grand. Good to know that I've got a grand in cash coming in every july!!!
'Ah well, I suppose it had to come to this.'
Rags 2 riches!
How old are you??
ive never understood people who use tax as a "savings account" id rather pay no tax during the year. of course, i have simple tax affairs, so its not for everyone but why willingly pay more then you have to during the year? just curious
heres a tip for those with Hecs/Help debt that make voluntary contributions
On 1 June each year indexation is applied to the part of accumulated HELP debts which have remained unpaid for more than 11 months. emphasis added
Last edited by Joe Peeps; 05-09-2009 at 04:43 PM. Reason: correct a mistake i made - thanks Reaper!
"The crisis of today is the joke of tomorrow" HG Wells
Tells it like it is.
I don't understand it either. Why not open a savings account and plonk that money in there every week. It's still relatively easy to get 4.5%pa - more if you look around. The other option is giving Govco use of your money for the year. It would be relatively save - not like they are going to give it away or anything
Sounds like a great tip and has the ring of truth to it - If i could get my head around it to understand what you meanheres a tip for those with Hecs/Help debt that make voluntary contributions
. I guess it's probably lucky for both of us that I was never bright enough to go to Uni to have to worry about it.
Reaper
SILVERFOX
[QUOTE=Joe Peeps;1277413]ive never understood people who use tax as a "savings account" id rather pay no tax during the year. of course, i have simple tax affairs, so its not for everyone but why willingly pay more then you have to during the year? just curious
/QUOTE]
Because I don't miss 30 bux fortnight it guarantees I won't have to pay extra tax and it's like a thousand dollar bonus at tax time. Surely you are able to see that logic?
'Ah well, I suppose it had to come to this.'
VIP Member
Probably the wisest thing to do.
Seriously, if there is one thing that the Government will religiously police, it is taxation. As has been said numerous times, 'A Governments most reliable records are those of taxation'.
Speak to an Accountant and he will tell you your options.
agree on the first point - as far as the second point, i dont blame you for not getting it i bolded the wrong part!!!I don't understand it either. Why not open a savings account and plonk that money in there every week. It's still relatively easy to get 4.5%pa - more if you look around. The other option is giving Govco use of your money for the year. It would be relatively save - not like they are going to give it away or anything
Sounds like a great tip and has the ring of truth to it - If i could get my head around it to understand what you mean
Reaper
what i meant was a voluntary contribution should be made just before indexation rather then any other time of year so you can earn on what would otherwise sit in government coffers. im sure you'd agree not going to uni is not an indication of intelligence (or income potential)!
VYmad have you considered that the money you give to the government you could be using to earn more money? $1 today is worth more then $1 next year. negligible in your case (maybe $30 a year - tax haha) but as i said its the mentality that i find interesting
Last edited by Joe Peeps; 05-09-2009 at 04:55 PM.
"The crisis of today is the joke of tomorrow" HG Wells
<---Brad Quaid = internet stalker
Makes sense but it isn't rocket science working out how much take you'll need to pay and that extra money you are free-loaning to the ATO could be earning you money some other way.
Jopeeps- I'm still a bit lost on the HECS stuff, what should i be doing to minimise the amount which is indexed? I know when it's indexed but do you mean if i whack a nominal amount like $500 toward HECS in say June, it'll help me out?
I get what you mean but i don't get how it works and exactly what i should do to hook through it faster.....
Generally the best time to pay is just prior to indexing before June 1st each year - there is no advantage to pay earlier year to year.
20k hecs debt, 5k voluntary repayment (factoring in 10%bonus)
pay in June 2009: Come June 1st 2010 Hecs debt = $14500
pay in May 2010: Come June 1st 2010 Hecs debt = $14500
but youve had 5k to play with and dabble in whatever for the best part of a year. eg offset home loan if your playing safe, poker/shares for the gamblers As always it really depends on your plans/salary options if its worth your while and always seek professional advice
Last edited by Joe Peeps; 05-09-2009 at 09:33 PM.
"The crisis of today is the joke of tomorrow" HG Wells
<---Brad Quaid = internet stalker
I get ya now. Anytime will have the same outcome, just no reason to sink it in early in the year. I just add to it when I can so I guess it's having the same effect. I thought you were going to wise me up on some clever formula I wasn't aware of.
I will second that. (Plenty of tax specialists you can consult).
Yeah i agree with Minux and sean880 see a tax consultant. Did my tax today, payed over $12K getting $5K back
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