Tax Planning for Employees

Tax Savings Strategy 249 | Smartwatch

25 June 2019

A smartwatch is a wearable computer in the form of a wristwatch. Their functionality is similar to smartphones and includes:  Mobile apps. Mobile operating system. Wi-Fi/Bluetooth connectivity. Portable media players, with FM radio and playback of digital audio and video files. Making and receiving phone calls.  Sending and receiving emails. Digital cameras. Heart rate monitors.…

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Tax Savings Strategy 224 | Employee Remuneration Trusts

14 May 2019

An Employee Remuneration Trust (ERT) arrangement involves a trust being established to facilitate the provision of payments and/or other benefits to employees of an employer. The trustees provide the benefits at the direction of the employer. This strategy is useful to retain and reward employees that are critical and important to the business’s success. A…

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Tax Savings Strategy 214 – First Home Saver Scheme

18 October 2018

From 1st July 2017, taxpayers can contribute up to $15,000 per year in voluntary contributions (up to $30,000 in total), that can be withdrawn for a first home deposit. The contributions must be made into their superannuation account and be within an individual’s existing contribution caps. The contributions and earnings are both taxed in the…

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Tax Savings Strategy 213 | Boats & Yachts

20 September 2018

This strategy involves using the entertainment facility leasing provisions of the FBT Act to make owning and operating a boat or yacht as tax effective as possible. To achieve this, it should be structured as follows: Individual owns the boat or yacht. Individual leases the boat to the business entity on an exclusive basis for…

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Tax Savings Strategy 209 | Excess Concessional Super Contributions

14 June 2018

This strategy involves employees with large employment income salary sacrificing part of their wages into excess concessional super contributions.  The tax consequences of this are: The employer receives a tax deduction for the total super contributions made. The excess super contributions are included in the employees individual assessable income and taxed at marginal rates. The…

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Tax Savings Strategy 200 | $1,000 In-House Benefits

8 February 2018

This strategy involves employee’s salary sacrificing $1,000 of wages income (which is taxable) for $1,000 of employer provided goods or services (which is tax free). The goods or services provided by the employer must be same ones as they sell to their customers. So a clothing retailer for example, could provide $1,000 of free clothing…

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Tax Savings Strategy 198 | Health Coaching, Lifestyle & Weight Loss

25 January 2018

Work-related counselling provided to employees (and their associates) in order to improve or maintain their efficiency at work or prepare them for retirement will be tax deductible and FBT exempt. It can be provided as individual or group counselling and can be related to matters such as: Quit smoking programs. Weight watches programs to lose…

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Tax Savings Strategy 197 | Long Service Awards

18 January 2018

Long service awards granted in recognition of 15 years or more service are tax deductible and FBT exempt, provided the value of the award doesn’t exceed the following specified amounts: $1,000 for 15 years’ service. Plus $100 per additional year of service. Where the value of an award exceeds the relevant maximum value, no part…

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Tax Savings Strategy 195 | Taxi Travel

3 January 2018

Employer provided taxi travel that is a single trip beginning or ending at the employer’s place of work will be tax deductible to the employer and an FBT exempt benefit to the employee. This enables an employer to provide an employee with a single taxi trip to the office everyday, and then another single trip…

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Tax Savings Strategy 194 | Corporate Box

28 December 2017

This strategy involves purchasing a corporate box sponsorship package for the AFL Football, rugby, horse racing, speedway, etc. For fixed price sponsorship packages the business will normally pay one fixed price for the following benefits: Signage and advertising rights (This promotes the business’s name at the ground, on signage, on uniforms, on web sites and…

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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

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