So, another year another hyped budget. As a single person there is little given it these events. But in light of this "great kick-start" for small business, and I'm (like the majority) a worker for a small white collar business, what should I be asking from my bosses/IT to have a benefit? A work phone? Wage increase? Perhaps a good time to find a new job?
Tl;dr, what benefits should I get from my company post budget?
If you think having a work phone is a "benefit" rather than a burden, I think you're probably a bit deluded…
Amen. Specially if clients and teams you deal with are located in EU. :|
I'm wondering if I can set myself up as a small business, then employ myself to work my current job, and start to purchase business 'assets' under $20k for an immediate writedown… i'm dreaming aren't I?
No - you're not dreaming.
You could sub-contract to your current employer.
He'd be happy not to have to:
Take and pre-pay your income tax for you.
Pay you sick pay
Pay you annual leave
etc
And in exchange you could ask for a higher amount of pay.
You could then buy yourself assets to perform your contracted task.
eg.A vehicle under $20,000.
There would also be other deductions available, such as a percentage of your home utilised as a home office.
and the list goes on… welcome to "Small Business".
But see an accountant first.
If you sub contract back to your employer you would be considered PSI (Personal Services Income) and not a small business. You won't be able to access the tax breaks of a small business if you are not an actual small business.
https://www.ato.gov.au/Business/Small-business-and-general-b…
keep your payg job while you setup your enterprise and apply for an abn.
https://abr.gov.au/For-Business,-Super-funds---Charities/App…
The non-commercial loss rules will still apply, so you will have to defer the loss until the business makes a profit.
You can not offset it against your PAYG income.
https://www.ato.gov.au/business/non-commercial-losses/eligib…
carwashhair was asking about the $20k writedown.
isn't offsetting possible with an payg of <$250k plus an assessable income of at least $20k for the enterprise?
The business needs a assessable income of $20K, but if you sub contract for your employer the income isn't considered business income (it's considered PSI). You'd therefore need to run a business as well to get the deduction.
If you are a valuable employee then they will be offering you benefits or a raise.
If these are not being offered then worry…
Talk about the age of entitlement. Maybe you can ask if you can become some of the expected increase in unemployment as a priority pick?
Continued employment
As an employer myself, I would suggest that you take your third option.
Really, really though? Wow, talk about self entitlement?! Just be grateful you have a job! Jeez…
Do you enjoy being laugh at to your face? If so I highly recommend using the annual budget as a justification for a pay rise or an increase to benefits as opposed to your job performance and potential.