By: ecchi.gaijin
3/03/2009
4:06 pm Yahoo! Profile:
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| Salary sacraficing isn't as attractive any more unless you are on the highest tax bracket or if you are referring to exempt benefits such as laptop computers, mobile phones etc. High business use motor vehicles will often get you a similar benefit if you claim it on your own tax return as opposed to salary sacrafice. |
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By: renovatejb
3/03/2009
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Got this from Tax Today web site
http://www.taxtoday.com.au/faqs.html#20
20. How can I reduce my tax bill?
Salary Sacrificing is one of the most efficient methods of reducing your tax and its legal! The advantage of Salary
Sacrificing is that your benefit is purchased with pre-tax dollars. There are many things that you can Salary Sacrifice. (Car, computers, even mortgage repayments). All are subject to Fringe Benefits tax, except superannuation and minor benefits such as a mobile phone or computer. Motor Vehicles are subject to Fringe Benefits tax but the amount is reduced if the car is used for work. The Fringe benefit tax is paid by the employer and is paid at the top marginal rate
of tax, including Medicare (46.5%) on the grossed up benefit provided. Some employers require their employees to reimburse the FBT amount from their salary package. |
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By: nz4forest
22/02/2009
12:50 pm |
Message deleted. Reason: Breach of terms of service |
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By: ecchi.gaijin
5/02/2009
9:50 am Yahoo! Profile:
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| Fair enough, thanks Jason. |
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By: jasonwaroo
4/02/2009
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By: ecchi.gaijin
Yesterday (12:54 pm)
I don't believe they did. There is only talk now of some state revenues being removed, but given the condition of many state budgets that may not eventuate.
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No the states removed the required state taxes under the GST deal with Howard;
http://www.theage.com.au/news/National/Getting-to- the-bottom-of-the-GST/2005/03/07/1110160752766.htm l
Peter Costello is at war with state governments over the details of the GST. Are the states, as he says, gaining a vast windfall? Have they failed to roll back other taxes as promised? Tim Colebatch examines the evidence.
Under the new deal announced by Howard on May 31, 1999, just three state taxes were earmarked for immediate abolition: the financial institutions duty, the accommodation tax and the stamp duty on transfer of shares. A fourth tax, the bank accounts debits tax (dubbed the BAD tax) would be removed from July 1, 2005.
But removal of all the stamp duties, including conveyancing duties on business property, were deferred indefinitely.
Otherwise, under the agreement, the Commonwealth would have had to underwrite the costs of abolishing them if GST revenue fell short — something it was unwilling to do.
Despite Costello's claims, the agreement signed by Howard and the premiers in June 1999 did not commit the states to abolish any stamp duties
Have the states kept their promise?
Yes. All states abolished the financial institutions duty, accommodation taxes and stamp duties on marketable securities by July 1, 2001, as promised. NSW has already abolished the BAD tax as well. Victoria has yet to produce legislation, but a spokeswoman for Brumby said yesterday it will be passed this session, and the tax s *** ped from July 1. |
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By: ecchi.gaijin
3/02/2009
12:54 pm Yahoo! Profile:
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"Yes they did, the states removed the taxes as required by the GST deal!"
I don't believe they did. There is only talk now of some state revenues being removed, but given the condition of many state budgets that may not eventuate. |
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By: jasonwaroo
3/02/2009
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By: antiramper
30/07/2007
11:39 pm
Do you forget when Beasley opposed Howard's income tax cuts? The GST was introduced to reduce the burden of income tax on the middle class and to replace some of the state government taxes..."only your labor state governments didn't keep their promise"!
Yes they did, the states removed the taxes as required by the GST deal! |
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By: blogger717
2/02/2009
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there is more commentary on economic and financial news. Stock trading tips, guides, option contract strategies etc.
come check out http://blackvaultcm.blogspot.com |
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By: ecchi.gaijin
2/02/2009
12:03 pm Yahoo! Profile:
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"The Government under Law is forced to give you back some of the money you spent in making the investment - So in fact the Government subsidizes your investment or business expenses."
This is a little misleading. The only benefit the government gives you in regards to your tax return is a reduction in tax paid/payable. If you do not pay any tax you cannot get any benefit from them no matter how much you invest. |
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By: mobsace
31/01/2009
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Saving Tax is a misnomer. Like you said you spend $1 and get back 45cents .. not a good investment on the face of it.
But it is a bit more involved than that. You can't save tax in the manner which you illustrate because it does produce a negative return. However what you can do is utilize the tax rebate opportunities to leverage the return. This is why people borrow to invest.
They pay $1 interest and get a rebate of 45cents or less .. but it is not the tax benefit which is the reason for them to invest. The reason they invest is to make money on the investment (if they can) .
And the tax law is written to encourage people to invest - in property, stock or businesses. When you do then you qualify for a reward. The Government under Law is forced to give you back some of the money you spent in making the investment - So in fact the Government subsidizes your investment or business expenses.
So would you like someone to give you money towards your investment expenses?
(True the money you get back is money you earned yourself in the first place - but better to get some back rather than none at all).
The Tax Law rewards you in this manner because you take the risk of running a business or incurring costs for the investments you make.
As it is not possible for most people to get rich simply by saving some of their earned income the more aggressive types are prepared to take risks and invest in order to create wealth.
So if you do want to improve your financial position and are prepared to take the risks associated with investing why not structure how you go about it so the Government gives you back some of your expenses - which then improves the ROI (return on investment) percentages. |
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By: ecchi.gaijin
5/01/2009
11:13 am Yahoo! Profile:
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"Talk to your union for tax advice as well"
Just be careful with this. I know of one case in the trasport industry where a union rep publicised what he was told was a good way to increase his tax refund. 150 audits later and a lot of people ended up giving the money back to the ATO ..... PLUS penalties.
As I have said before, aside from a few examples you have to pay $1 to save 45cents in tax. So don't waste your time trying to manufacture a tax refund.
On the other hand do question your tax agent on any expenditure you have that you feel contributes to your work. |
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By: jfreeth2008
24/12/2008
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| I am on salary too, fortunately I am in the upper wage bracket. My advice is to think outside the square. The ATO expect everyone to roll over, but with a bit of lateral thinking and study,study,study regarding your industry claims. Talk to your union for tax advice as well, read newspaper articles and magazines. Talk to the right accountant, sometimes it takes a stern word to get the results you need, if you feel it is right then claim it!!! If an accountant doesn't get you a good return DON'T sign it, get your paperwork back with a big thank you and head elsewhere....Good luck |
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By: makeanempire
3/08/2007
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| Financial advisers are useles when it comes to giving advice on decent tax planning |
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By: antiramper
30/07/2007
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Please keep your left wing propaganda off this board thank you. The Howard government has reduced income tax at every possible opportunity, while the state governments (labor) have increased stamp duty at every possible opportunity.
Do you forget when Beasley opposed Howard's income tax cuts? The GST was introduced to reduce the burden of income tax on the middle class and to replace some of the state government taxes...only your labor state governments didn't keep their promise!
Suren, tell us some details about you and maybe we can help.
How old are you?
Do you have much surplus cash?
Financial Advisers are much more helpful then tax accountants :) |
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By: dustinpendragon
19/07/2007
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| the big problem you have is the fact you are a salary person , there is nothing wrong by the way with being on a salary , it has many benefits , specially if you manage to live to be 90 , but the simple fact is johny and peter love people like you , they both have one hand on your rocks , and every thursday afternoon they squeeze , by the way they 2 are on salaries , the difference being the massive amount of benefits and bonuses they give to them selves , and of coz 15 % super , even after they leave office , they wont let people like you get ahead , your trapped mate , open a company like I did mate , and go in to debt , then you will pay little or no tax |
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By: wseeto1974
19/07/2007
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You really need to keep all your receipts of any expenditure that may be related to your work. If you don't have receipts you cannot claim the deduction. Then go to an good accountant and they will be able to tell you what you can and cannot claim.
Best to develop a system to help you keep your records properly. Try out the product called Taxstar, you can find it at newsagents. |
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By: riskpirate
19/07/2007
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| First step use good tax accountant and be prepared to pay. secondly keep all receipts concerning gaining income.thirdly, think like a fox. |
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By: d_suren
19/07/2007
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People are saving tax to some extent and many people (like me) are not aware of tax saving option. I have discussed with tax consultant and they just do the regular stuff to save few 100 dollars, unless you ask the right question to them. I think everyone needs to know all the tax saving opportunities to save tax.
It will be good idea list out all the possible opportunities to save tax; hopefully it will benefit most of the people.
Thanks in advance.
Suren |
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