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#1
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Few Questions about tax and super
Im looking at ways to reduce my tax.
Id like to know which ways are more effective in doing so - putting more money into your super fund? Salary Sacrificing (dont know alot about this) ? Investments (block of land, house, etc) ? what do I need to know/do to drop ninto a lower tax bracket or simply reduce? thanks |
#2
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Salary Sacraficing is a great idea imo. You put a certain percentage of you Gross (before tax) wage into you super. For alot of mine workers up north that are older they put out of their $4000 gross a week they get, they put $2000 of it into their super and that leaves them with a taxable income of $2000. This is then taxed at a lesser rate as earning 2000 "gross" a week instead of 4000 would put you in a lesser tax bracket.
Also start your own business hah. Write everything off on it. If you work out of your house, you can claim almost everything on tax. I spose people can delve into the yays and nays of it all, but yeah. Contractors are the go.
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Honda Hannspree Edition CBR 600 RR - SOLD Yamaha FZ1N - Purchased |
#3
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How do you know how much money you should "salary sacrifice" to put into your super fund???
And Do i sacrifice it before or after tax ??? whats best? |
#4
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The deal with salaray sacrafice is that you sacrafice your wage BEFORE tax. This is where its really good. You get to take some of that money away from the taxman and get dropped into a lower tax bracket, therefore taking more away from him. You dont really know "how much" you should sacrafice. Maybe try work it out.
Go to the Tax website, work out your tax bracket based on your gross wage, and do a few different sums working out how much per week you should sacrafice to get into a lower bracket. http://www.ato.gov.au/individuals/pa...pc=001/002/046 But be aware, this will obviously lower your disposable income at the end of the week. So if you can grasp that concept, you're pretty alright.
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Honda Hannspree Edition CBR 600 RR - SOLD Yamaha FZ1N - Purchased |
#5
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putting money into super, you wont be able to touch it until you retire...
salary sacrificing your car is good if you're in a high tax bracket, and do lots of kms, but your employer will probably make you pay FBT. You can salary sacrifice up to 3k per year on a laptop, only useful if your already buying one post tax. You can only really start reducing ur taxable income if your actually spending money on legitimate items for certain purposes, or losing money on investments. Starting a small business will make a small dent, as you can get away with buying things that you would buy anyway, then claim them as tax deductable. Heres a couple of links that arnt directly related to sal sac stuff, but are useful. (second one is hecs % vs pay brackets) http://jaw.iinet.net.au/stuff/taxcalc.html http://www.goingtouni.gov.au/Main/Fe...oluntary.htm#2
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[S]kid[S] Last edited by Smokey; 04-01-2008 at 01:37 PM. |
#6
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hrrm theres not alot of space to move down where i am, it means i'l have to sacrifice heaps to super to drop down to the lower tax bracket.
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#7
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Negative gearing is your friend - use it to reduce your tax.
If you have non deductible debt then super MAY not be your best option. Paying off your non deductible debt should be your No 1 priority. You really should sit down with someone and go through your goals and expectations/risk aversion tendancies and then develop a plan based around those factors specific to you. Salary sacraficing super has its place but your age, salary and current position need to be taken into account.
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Arguably my Automobile is Awash with Alliteration - Subaru Sti S202 |
#8
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Negative gearing is a great way to minimise tax and is one of the most effective methods. Talk to your accountant or a financial advisor even and ask them what is the best approach for you to undertake. As I am sure you do not wish to disclose all your personal information on an open forum talking to an accountant will be the best thing you can do. Outlay your ideas and tell them what you wish to achieve and see what they suggest and what works for you.
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#9
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cool, but wtf is negative gearing and how does it work?
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#10
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Pay for some professional advice or go do some reading.
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Tags |
questions, super, tax |
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