101 Ways to Save Money on Your Tax - Legally! 2012-2013

About the author xi

How to use this book xiii

Introduction xv

Part I You and your family 1
Tip 1 Marriage 2
Tip 2 Income splitting 5
Tip 3 Dependants 7
Tip 4 Children 9
Tip 5 Paid parental leave and the baby bonus 12
Tip 6 Child care 14
Tip 7 Low-income earners 16
Tip 8 Senior Australians 18
Tip 9 Other government benefi ts 20
Tip 10 Family breakdown 23
Tip 11 Death 25
Tip 12 Trusts 28

Part II Your employment 33
Tip 13 Car usage 35
Tip 14 Methods to claim car travel 37
Tip 15 Travel 40
Tip 16 Uniform 42
Tip 17 Home offi ce 44
Tip 18 Other work-related deductions 47
Tip 19 Overseas employment 49
Tip 20 Keep those receipts 51
Tip 21 ATO hit lists 54
Tip 22 Redundancy 56
Tip 23 Working a second job 59
Tip 24 Salary sacrifi ce 61
Tip 25 Fringe benefi ts 64
Tip 26 Living-away-from-home allowance 67

Part III Your education 71
Tip 27 Claiming self-education expenses 72
Tip 28 The $250 threshold 75
Tip 29 Self-development courses 77
Tip 30 Higher Education Loan Program 80
Tip 31 Student Financial Supplement Scheme 83
Tip 32 Youth Allowance 85
Tip 33 Austudy and ABSTUDY 87
Tip 34 Other government assistance 90
Tip 35 Scholarships 92
Tip 36 Children’s education 95
Tip 37 School building funds 98
Tip 38 Education savings plans 100

Part IV Your investment property 105
Tip 39 Negative gearing 107
Tip 40 Interest 110
Tip 41 Depreciation 112
Tip 42 Low-value pooling 115
Tip 43 Repairs and maintenance 118
Tip 44 Travel to see your investment property 121
Tip 45 Borrowing expenses 123
Tip 46 Legal expenses 126
Tip 47 Other rental property deductions 127
Tip 48 Foreign investment properties 130
Tip 49 Capital gains tax 132
Tip 50 PAYG withholding variation 134
Tip 51 Genuinely available for rent 137

Part V Your shares 141
Tip 52 Dividends 143
Tip 53 Franking credits 146
Tip 54 Dividend reinvestment plans 149
Tip 55 Lower income earners 150
Tip 56 Borrowing to buy shares 153
Tip 57 Other allowable deductions 155
Tip 58 Shares and capital gains tax 157
Tip 59 Realise capital losses 159
Tip 60 Inheriting share portfolios 162
Tip 61 Share trader versus share investor 164
Tip 62 Rights and options 167
Tip 63 Employee share schemes 168
Tip 64 Share portfolios within self managed superannuation funds 171

Part VI Your superannuation 175
Tip 65 Contribution limits 177
Tip 66 Compulsory employer contributions 180
Tip 67 Salary sacrifi ce 182
Tip 68 Super co-contribution 185
Tip 69 Transferring foreign super 188
Tip 70 Self managed superannuation funds 190
Tip 71 Buying property within SMSFs 193
Tip 72 Gearing through a super fund 195
Tip 73 Accessing your super 198
Tip 74 Transition to retirement 200
Tip 75 Allocated pensions 202
Tip 76 Death benefi ts 204
Tip 77 Lost or unclaimed super 206

Part VII Your business 211
Tip 78 Choosing the right business structure 213
Tip 79 Tax obligations 216
Tip 80 Record keeping 219
Tip 81 Deferring tax 222
Tip 82 Trading stock 224
Tip 83 Bad debts 226
Tip 84 Home-based businesses 228
Tip 85 Employing people 231
Tip 86 Tax concessions and offsets 234
Tip 87 Selling or closing down 236
Tip 88 Personal services income 238
Tip 89 Non-commercial losses 240
Tip 90 Franchising 242

Part VIII Miscellaneous 245
Tip 91 Overseas income 246
Tip 92 Get a great accountant 249
Tip 93 Lodging your tax return 251
Tip 94 ATO data matching 253
Tip 95 Problems paying your tax 256
Tip 96 Medical expenses tax offset 258
Tip 97 Levies 261
Tip 98 Zone and overseas forces tax offsets 265
Tip 99 Tax-effective investments 267
Tip 100 Tax planning is a 365-day process 269
Tip 101 Just do it! 271

Glossary 275

Bibliography 293

Index 295