Income tax

Old Nov 1st 2008, 10:42 pm
  #1  
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Default Income tax

I am negotiating a total income of $150k. I anticipate at least 50k would be for accomodation. Is there any way I could get a tax break for this?

Alternatively, if my employer paid me less and effectively paid for my accomodation, would I have to pay tax on the total rental?

Thanks.
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Old Nov 1st 2008, 11:06 pm
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Default Re: Income tax

We need a few more clues, tamaja.

Will you be on a 457 or PR, for starters? If you are on a 457, you need to ensure your employer sets up LAFHA for you; it's worth a fair bit, tax-wise.

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Old Nov 1st 2008, 11:12 pm
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Default Re: Income tax

I would prob be on PR visa. I was on the impression that LAFHA would not be applicable because I am voluntarily leaving my employment in UK to take a new employment in Sydney.(?)
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Old Nov 1st 2008, 11:18 pm
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Default Re: Income tax

If you are on a PR visa, you are correct - no LAFHA - but coming voluntarily is not relevant, just the type of visa.

Sorry I don't know anything about tax breaks as PR - I'm sure people in a similar position will comment but your best bet is to employ a good tax accountant as it really is all about minimising it here.
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Old Nov 1st 2008, 11:19 pm
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Default Re: Income tax

Originally Posted by tamaja
I am negotiating a total income of $150k. I anticipate at least 50k would be for accomodation. Is there any way I could get a tax break for this?

Alternatively, if my employer paid me less and effectively paid for my accomodation, would I have to pay tax on the total rental?

Thanks.
Talk to your prospective employer about the LAFHA but regardless if they pay for the accomodation you get a benefit by salary sacrifice. ie instead of paying higher rate of tax on 150k you pay a lower rate on the $100k

When you select a vehicle apply the same logic ie annual lease of say $3k per month $36k lowers the $100k to $64k

Also review FBT implications, but I am sure your prospective employer will provide more specific details on this.
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Old Nov 2nd 2008, 7:01 pm
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Default Re: Income tax

As my employer does not usually make overseas appointments, I'm not sure how much advice I will get from them.
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