Case Study | Relocation Expenses
Objectives:
Tom, an employee mining electrician has just got a new job in Port Headland, WA and will need to relocate his family from QLD. He wants to save some tax to help fund the relocation costs.
Facts:
- Incurs $18,000 in airfares, accomodation, and furniture transport costs relocating the family.
- Tom’s current wages income is $200,000 pa.
Accountant’s Advice:
- Tax Strategy 9: Relocation Expenses – Salary sacrifice the $18,000 relocation costs with his new employer. The employer will reduce Tom’s first year wages by $16,364 (which is the $18,000 relocation costs less the 1/11 GST refunded to the employer).
Results:
- Tom saves $7,691 tax ($16,364 @ 47%).
- Tom saves the $1,636 GST on the $18,000 relocaction expenses incurred.
Similar posts you may like
- Private Investigator Saves $16,410 in Tax
Objectives: Simon Jones operates a metro based private investigator business providing investigatory and surveillance services. When Simon visited his accountant, he said he Read more
- Salesperson Saves $1,551 in Tax
Objectives: Roy, an employee software salesperson, uses his own motor vehicle for work purposes and is reimbursed the cost by Read more
- Cleaning Company Saves $123,500 in Tax
Objectives: Sam, operates a cleaning company servicing several shopping centre clients. As the cleaning industry has very low margins, Sam is looking to reduce Read more
- Case Study | Plumber Saves $1,598 Tax
Objectives: Thomas is a plumber who wants to save tax so he can buy a new car. Facts: Thomas’s car was stolen Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2