Hi All,
I am about to complete 10 yr for my existing employer and as a token of thank you, I have been permitted to claim $11,000 worth of expenses. Yes, my employer is a generous one! :)
To be frank I wanted cash but half the money would be gone in taxes if I took cash.
I just need a few ideas people can share where I can buy something and then sell it back for cash.
Any ideas in this regard will be highly appreciated.
Thanks.
BG
That sounds uncomfortable. Sideways or cork-end first?
Get it in hotdogs. Everybody loves hotdogs
I have been permitted to claim $11,000 worth of expenses
If there are no restrictions and employer happy to pay the FBT regardless of what you get? The go to move for most PBI I deal with that don't have other things to claim is to take out a personal loan for $16k ($11k in your case) and pay it back straight away. You can incur some fees but it'll be minimal if ya want fast cash. Repayment will be treated as an expenses should there be some sort of agreement allowing you to spend $11k. However the fringe benefits tax liability will be $9754.76 to your employer + $11,000.
Now I'm not sure if you work for a for profit business or PBI because different tax concessions can apply for your employer.
PM if you want to know more
What's the benefit to taking out a personal loan and immediately paying it back?
Benefit is it's a justiable expense for the business (FBT issues aside) and OP gets the $11k
No employer has to by fbt on loans to employers at ato’s rate.
@Yarrph: but it's not the employer's loan as OP could get from bank of financier
also we don't know if OP works for PBI and gets an exempt FBT cap
$11k worth of Bunnings voichers, you'll use them up in no time.
Why not take advantage of this opportunity and buy stuff you probably wouldn't have otherwise, and pretend you never got this money in the first place? New TV's, HiFi systems, top end phone, big Brembo brake kit for your Camry…..
Super contribution via salary sacrifice if possible, otherwise contribute it into super as a non-concessional contribution (i.e. where tax has been paid on the money already) - this can be done by your employer and they simply need the BPAY details of your funds in most cases to transfer it. If you are under the contribution cap for the financial year (if not there is a bring it forward rule - look it up on the ATO website) you will be able to claim back the tax that had already been paid (namely by your employer) and this will be deducted off your taxable income in your tax return for the year. I was bequested some funds and contributed to my super as non-concessional and I was able to claim back tax paid on this contribution. This is a helpful resource which explains it: https://www.unisuper.com.au/super/grow-your-super/after-tax-…
wouldn't want to put it in super as it will attract 15% super contributions tax… if they can enjoy the full $11k then they should
also should you make a non-concessional super contribution and later put in a notice to claim a tax deduction… yes you can reduce your taxable income but then the 15% super contributions tax will apply as the non-concessional becomes concessional
if you were a regular employee the employer won't be able to put non concessional super on your behalf and claim a deduction as only concessional super can be claimed as an expense for the organisation
maybe OP is under the tax free threshold where super will be out of equation
again…. we actually don't know what the restrictions or constraints of the $11k is as OP hasn't provided enough info
Super is dead money, dont do it, u cant access for what 30-40yrs. Unless you are close to joining a retirement village lol
Money to day is worth money than money in future despite the lower 15% tax rate. Its the premise of finance in uni.
agreed
This is easy - buy anything that is refundable.
E.g. Buy an $11k course on your personal credit card, submit the receipt to your company, get the reimbursement, and then ask the provider for a refund.
Some may consider this light fraud… But I don't think the risk is high.
X - how to get 11k cash for 10 year service
✓ - how to cheat on ATO
Get a Rolex and sell it to the useless sods running AusFailure Post! 🤪
Penfolds Grange, sit on it for a few years then resell.