tax avoidance

ifeelill

Anyone got a beat on tax avoidance schemes in Aussie? What are the most common ones ?

Strictly legal of course.

mandrake04

If you are smart you can reduce your taxable income without reducing your actual income.

Anything that is related to business could be tax deductible, best example is a car.

My employer offered me a car allowance which is part of the package $15000 plus fuel card per year, this is just added to your annual Gross and is taxable unless you can show that it's deductible. I do a log book for 3 months which choose to do when I am really busy in the field (not on holidays, training etc) and pick jobs that are fair distance regional towns etc. Same at the weekends/evenings I avoid using that car for private use as much as I can for the 3 months and just use my wife's car.

I do the log book and note down all the sites I visit for business purposes and the odometer reading and KMs versus KMs for private use (also remember that commute to usual place of work like an office is private) at the end if the 3 months you can devide your KMs as BUSINESS/PRIVATE as a percentage and this does you for 5 years or until you change the car.

I did this and my Business was 85% private 15%, once the log book is done I avoid driving as much as I can and just fly regional instead keeping my KMs down in my car

Any expenses for the car, servicing, tyres, I keep receipts and put the whole lot in.

My total decuctions for this year was $24K of which $21K was car alone. In the end I still use my car for work but I don't really have to buy a car for private use which if I did it would have been after being taxed and I just saved myself about $7500 per year in tax if I was paid the equivalent value as wages.

I keep the car for 4 years which is probably then worth about $14K which I can sell (or my wife can sell) and just start again from scratch with a new car.

ifeelill

How about investments? Can a person reduce there taxable income if they buy stocks and shares ?

sin_city

ifeelill wrote: »

How about investments? Can a person reduce there taxable income if they buy stocks and shares ?

You pay tax on profits and get a deduction on losses....of course, no profits or losses unless you sell as the dividends are either fully franked or take into consideration the tax at the payout time.

If anyone is doing a course related to their job you can deduct this.

Dats_rite

If you own a property in Ireland there are a few things you may be able to use in your tax return. If you make a profit/income on your property you have to declare this in your return as income and likewise if you make a loss. So if after you add up you mortgage interest, insurance, estate agent fees etc - full list here:

http://www.ato.gov.au/Individuals/Tax-return/2013/Supplementary-tax-return/Income-questions-13-24/21---Rent/

Also if you fly home with the sole purpose of checking on the property or making repairs on the property you can claim the cost of the flights back on your return. I'm trying to find the link to this but cant seem to fins it now.

ifeelill

Dats_rite wrote: »

Also if you fly home with the sole purpose of checking on the property or making repairs on the property you can claim the cost of the flights back on your return. I'm trying to find the link to this but cant seem to fins it now.

True ? Can anyone confirm this ?

Legend100

Dats_rite wrote: »

If you own a property in Ireland there are a few things you may be able to use in your tax return. If you make a profit/income on your property you have to declare this in your return as income and likewise if you make a loss. So if after you add up you mortgage interest, insurance, estate agent fees etc - full list here:

http://www.ato.gov.au/Individuals/Tax-return/2013/Supplementary-tax-return/Income-questions-13-24/21---Rent/

Also if you fly home with the sole purpose of checking on the property or making repairs on the property you can claim the cost of the flights back on your return. I'm trying to find the link to this but cant seem to fins it now.

This only applies if you have PR (even though I know a few people on 457 who have claimed it incorrectly and even had it done by a tax agent)

temporary residents are not taxed on worldwide income even though they are tax resident here. this means you cannot claim a loss also

........waits for the hundreds of responses from people saying they claimed it :D:D

Ye shouldn't have and if audited would be repaying the sizable refunds I have seen people get

http://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Other-foreign-income-of-Australian-residents/Foreign-income-exemption-for-temporary-residents---introduction/

mandrake04

Yes only for PR

http://www.ato.gov.au/Individuals/Ind/Rental-properties---claiming-travel-expenses-deductions/?default=&page=6

ifeelill

How about super ? I know your employer contributes a percentage of your earning to your super fund which goes towards retirement. My question is if you make your own or extra contributions on top of the employers would this reduce your gross taxable income

Legend100

As an employee (generally - there are exemptions for lower income workers), personal contributions do not get a tax benefit

However - you could chose to salary sacrifice personal contributions, if your employer allows it, that will reduce your taxable income

the flip side of this however is that the employer then pays the compulsory 9.25% on the lower amount after the salary sacrifice

You'd have to weigh up the numbers to see if you would be better off in the long run (especially with your final plans about staying in the country)