Salary tax minimisation strategies

REDBACK

REDBACK

Well-Known Member
Silver Stacker
Hi all
I have always been self employed in one manner or another and find myself an employee now by choice (And loving the change).


So my question is at this juncture in the financial year coming 2014-2015 i would love some advice as to how to reduce my tax while effectively leaving myself the most disposable income i can manage.
I am not into financial advisors and would rather approach an accountant with clarification questions rather than what are your ideas questions.

Facts to help you help myself

-Earnings 180k plus
-Hired as an Employee of a company
-Have in the past always paid the minimal amount possible into my SMSF
-Aware that In the 2014-2015 financial year the Super contributions allowed before tax are 30k.Will take advantage of this income reducer.
-Currently claiming all the usual small accountancy items(Travel,food,accommodation,tools etc)
-No possibility at present of changing the hire method to Company Charge out or contractor hire out.
-My old company structure is still in place as a trustee for my SMSF
Other information will be sent by Private Message if requested.

Just drove 7 hours so i'm about to drop ...that will do till my brain engages again.


Hey any ideas appreciated no matter what the direction. :)

Kind regards

REDBACK
 
Do you have a place that you are renting out?
I'm starting to think about this now as well as in spring I'm selling the investment property and won't have any tax minimisation options that I know of. Time to speak with the accountant.
 
Do you have private health insurance? If not, you'll be paying the Medicare levy surcharge on top of your regular Medicare levy.
 
whinfell said:
Do you have private health insurance? If not, you'll be paying the Medicare levy surcharge on top of your regular Medicare levy.
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Yes I have private health insurance.
Cheers
RB
 
What about getting paid in a low(er) taxing nation? Like Jabba the Hut does. She's an "Australian", unduly influences Australian politics. But when it comes to paying her own way she's a Singapore Sling kinda girl
 
Nugget said:
What about getting paid in a low(er) taxing nation?
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-No possibility at present of changing the hire method to Company Charge out or contractor hire out.
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Would also have to prove he was a non-resident for tax purposes in Australia.
 
If your a tradie do you use your vehicle to carry your tools to and from your workplace. Even if you don't do sitework, if the company you work for does not have a secure place to lock up your tools or is not insured if they are broken into and your tools are stolen you can claim wear and tear on your vehicle which can add up if you drive a lot of km's :)
 
Novated leases apparently can be good if your circumstances suit. Doesn't really suit me at the moment though so I don't have first hand experience.

When you are PAYG you really are limited. If you have a vocation is can be performed remotely (i.e., programming, administrative work) then the PT lifestyle with a company based abroad is something worth considering.
 
When you PAYE you're at their mercy but if you can become a 'consultant' you have a lot more claim options - office space at home, utility costs and so on, car and travel expenses in addition to the SMSF options. It saves the firm money as well when done properly, so perhaps negotiate a new deal?
 
JulieW said:
When you PAYE you're at their mercy but if you can become a 'consultant' you have a lot more claim options - office space at home, utility costs and so on, car and travel expenses in addition to the SMSF options. It saves the firm money as well when done properly, so perhaps negotiate a new deal?
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The ATO has published info on how to test if you are a contractor (consultant) or employee. It should only be used as a guide but gives you an indication if this is a possibility. Things have changed from 10-15 years ago and there is a lot less flexibility.

If you can operate as a business rather than PAYG then it is an entirely different conversation. One thing that annoys me as PAYG is that if I split income equally with Mrs Medved we'd pay 20+k/year less tax, whereas through a business or family trust that could be possible.
 
JulieW said:
When you PAYE you're at their mercy but if you can become a 'consultant' you have a lot more claim options - office space at home, utility costs and so on, car and travel expenses in addition to the SMSF options. It saves the firm money as well when done properly, so perhaps negotiate a new deal?
Click to expand...

Be aware though that if you do claim deductions for office space at home, apparently there's potential to run into trouble when you decide to sell your house regarding capital gains. As advised by my accountant when I was working from home.
 
Tacrezod said:
JulieW said:
When you PAYE you're at their mercy but if you can become a 'consultant' you have a lot more claim options - office space at home, utility costs and so on, car and travel expenses in addition to the SMSF options. It saves the firm money as well when done properly, so perhaps negotiate a new deal?
Click to expand...

Be aware though that if you do claim deductions for office space at home, apparently there's potential to run into trouble when you decide to sell your house regarding capital gains. As advised by my accountant when I was working from home.
Click to expand...

Sounds like another good reason to own an IP and rent a PPOR.
 
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