Originally Posted by manonthewall (Post 10901419)

G'd day, would be great if you guys can gimme some advice on car allowance:

Right now I'm earning:
base salary: $75000
with car allowance: $15000
with super: 6750
and commission ~20% of total salary

I have a crazy idea: Is it a good idea to ask employer to remove my car allowance from salary?
In this way, I will pay $5550 less tax right away.

Seems pretty crazy to me but err yes you can certainly reduce your tax by asking your employer not to pay your car allowance. You could ask them to reduce your salary as well whilst you are at it and then you will pay even less tax. :unsure:

When doing tax return, I estimate I can claim few thousand (maybe $4000) back because I travel with my car quite a lot for work purpose.

Furthermore, company also provides some benefit to claim $0.8/km if I travel over some distance. e.g. from Sydney to Newcastle, a return trip (360km) gives me $288. (but can I claim the same trip from both company and tax return?)

If you claim money back from your employer then no you should not be claiming it on your tax return as well. To do so is fraud.

Is it complicated enough that I need to find a accountant? or you guys can help me out?

Thanks a lot!!

Originally Posted by manonthewall (Post 10901446)

Thanks.

but if removing car allowance leads to the fact of lower tax, more $$ refund from gov / company provided that there is no fraud, ie. earning more than the car allowance, then it's not crazy.

Just wanna see if i overlooked anything.

I believe novated lease is also an option

Originally Posted by spouse of scouse (Post 10901472)

You need an accountant. Novated leases offered through your employer have FBT implications. Nothing stopping you declining the car allowance, but you'd have to do an awful lot of travelling to make up the nine and a half grand you'll lose in salary - remembering that if you claim a per kilometer allowance from your employer or the ATO (not both, as pointed out, that's double dipping and fraud), you will have actually expended funds from your own pocket in order to receive this allowance (petrol, portion of rego, insurance, maintenance etc etc)

I wouldn't even consider what you're contemplating, but it's up to you.

Originally Posted by manonthewall (Post 10901419)

When doing tax return, I estimate I can claim few thousand (maybe $4000) back because I travel with my car quite a lot for work purpose.

Furthermore, company also provides some benefit to claim $0.8/km if I travel over some distance. e.g. from Sydney to Newcastle, a return trip (360km) gives me $288. (but can I claim the same trip from both company and tax return?)

Originally Posted by ozzieeagle (Post 10901523)

I know that Government medical employees, nurses etc, usually pick meals and entertainment salary packaging over novated leases, because of that 9.5K I think. They definitely have both options.

Not sure whether you can choose Meals and Entertainment in your case or not.... very useful for takeaway food and pub meals etc etc.


In fact I dont know of one Nurse thats taken a vehicle over meals and entertainment.

Originally Posted by RedDragon2008 (Post 10901528)

I think you may need to be aware that the mileage allowance is limited to 5000 km's per year.

Just in case your thought was to claim this every week of the year:p

Originally Posted by manonthewall (Post 10902371)

thanks mates. seems all of you think my idea suck :huh:

Originally Posted by spouse of scouse (Post 10902479)

We're good at tough love :p