Truck Driver Saves $14,513 in Tax
Tom Roberts owns and drives his own truck making contract freight deliveries around Perth five days per week. When Tom visited his Balcatta, WA accountant he said he was concerned about the financial viability of his business and worried about protecting the family home if the business failed.
- $120,000 gross contracting.
- $40,000 truck operating expenses.
- Wife (not working).
- Current tax paid – $19,147.
- Tax Strategy 17: Family Trusts – This involves establishing a family trust and selling the trucking business across to the trust. As the business income is not personal services income, the income can be split between Tom and his wife.
- Asset Protection Strategy 10: Corporate Trustee – This involves incorporating a company to be the trustee of the family trust. This protects Tom’s personal assets if the trucking business fails in the future.
- Tax Strategy 85: $20,000 Asset Write-Off – This strategy involves selling the wife’s motor vehicle to the family trust (at market value).
- Tax Strategy 1: Salary Packaging Private Motor Vehicles – Enables tax savings from having the wife’s motor vehicle owned by the family trust.
- Protects Tom’s personal assets if the business fails in the future.
- Reduces tax payable from $19,147 to $4,634 per year.
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2