swans

Be aware that in the short term the interest in advance can be very useful.The inevitable is only put off to a later date.Using a 24 month deduction by going to IOA is great, but,one day the banks will say,sorry no more IOA.

By continuing to run IOA for the long term (20 odd years in my case) without a sinking fund to eventually pay off the debt problems can arise.Super can be used as a sinking fund ,but that brings it's own tax/asset problems.

Perhaps only for the short term (10 yrs),then start and reduce debt in future devalued dollars using P and I payments.Hopefully the assets will be producing a good income by then to reduce the shock of losing thousands or tens of thousands of tax deductable dollars.

Geordie downunder

commonwealth

For my owner occupied home, I'll go for IO with full offset.

Jilliebee

Hi George. Email sent.

Regards x

Alan Collett

Hello Gillian.

Email sent to you.

Best regards.

Gibbo

Be careful about how you word thing too. eg I usually wrote, " heat and lighting for work done at home" no prob deduction granted. One year I must have been feeling lazy and only wrote "electricity". Deduction denied. I never did that again.

BallBoy

Does anyone know if it is possible to claim back your Class 2 Vountary National Insurance Contributions to the UK as an Austraian tax deduction?
I have to declare foreign intrest earnings in my bank UK accout so it seems reasonable that I could offset anything I going back the other way?

I have made 3 payments this year for 2009, 2010 and 2011-12

Alan Collett

Why are you paying Class 2 NICs? These usually relate to self employment in the UK.

Is this self employment income also being assessed in Australia?

Best regards.

Alan Collett

Where did you write this? On documentation provided to your tax agent?

Am not sure how the situation you have described would have led to a tax deduction being denied.

Best regards.

Jilliebee

George? Sorry I meant Alan! Thank you

Alan Collett

Not a problem, Gillian!

Best regards.

BallBoy

Hi Alan,

Yes, I am paying Voluntary Class 2 Nics to top up my existing 24 Ni qualifying years.
I was originally invited to pay Class 3 but this was queried with HMRC and changed to type 2?
I am not self employed but in full employment within Australia.

I read in another thread that they are probably not tax deductable.

Kind Regards
Tim

Gibbo

No it was written on my tax return by me and the single word entry did result in the deduction being denied.. Wording did make a difference in years gone by, perhaps it's different now. For the last number of years I have let someone else do my return as I couldn't be bothered keeping up to date with the ever changing taxation law.