I was just reading an email regarding the budget changes, and it looks like the low income rebate has been increased to $600 so children will be able to receive about $1400 per year from a trust in income without having to pay tax.
For some one on the top tax rate than may mean a tax saving of about $700 per kid per year.
So children don’t cost you money, they make you money!!
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Good to know. Thanks Terry.
Elkam
Terry,
Rich people send their kids to child care and claim the fee as a company expense; at lease from the stories we hear.
How do they do it?; Could it be that the child is a director of the trust and is an influent to the company’s success? Therefore require child care as education???
Curious
ptnA company who has an in-house childcare centre can provide childcare to employees and these will be classified as exempt fringe benefits provided the criteria is met.
Given that you are using gross dollars to pay for the benefit and they are exempt benefits then it is a tremendous advantage who don’t. Usually only appropriate for medium to large companies who can afford to establish an in-house childcare centre.
Hi Mike,
So if I have my own childcare at home; where my company is operating, I can claim all the expense? IE. A live in nanny?
ptn
PTN, from Mike’s post, I think if your company is running a childcare centre, then your company can provide you with childcare without having to pay fringe benefits tax on that benefit.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Can we please stick to the topic.[offtopic]
When does the new rebate come in Terry ?Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”How boring life would be if we always stayed on topic. Ohh sorry this is off topic.
These changes were announced in the budget and therefore come into effect from 1 July like all other changes to tax rates.
Originally posted by coastymike:How boring life would be if we always stayed on topic. Ohh sorry this is off topic.
Nice one Coasty[specool]
CATA
Asset Protection Specialist
[email protected]Hi Amanda
I think the new rebates apply from July 1. The current rebate is about $230 or so from memory which means kids can receive about $750pa now and not pay any tax.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sorry Coasty, didn’t see your post.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Returning back to the off topic topic, I read somewhere about a politician who employed a housekeeper/child minder and claimed the wages as a deduction pretending the person was his secretary. Once discovered, he had to resign in disgrace.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
So the moral of the story is don’t get caught.
ptn
You must be logged in to reply to this topic. If you don't have an account, you can register here.
