itegoa Posted October 5, 2016 Share Posted October 5, 2016 (edited) Hi, I'm looking for a bit of advice on staying underneath the $100K FTB (part B) threshold. For those that don't know, if you earn more than $100K (as a single parent or the main earner of 2 parents) you lose it ALL: https://www.humanservices.gov.au/customer/enablers/income-test-family-tax-benefit-part-b My salary is $100K so I wouldn't normally (by the skin of my teeth) go over the limit, except i will do due to bank interest earned (guess about $1500 for the year) Is there any way to keep my taxable income at the $100K or below level? I was thinking take a few unpaid days of work so total taxable income is < $100K. Any other ideas please? Edited October 5, 2016 by itegoa Quote Link to comment Share on other sites More sharing options...
AJ Posted October 5, 2016 Share Posted October 5, 2016 why should you get it if you dont qualify? Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 why should you get it if you dont qualify? Because it could be possible to get it if things are (legally) manipulated. Quote Link to comment Share on other sites More sharing options...
AJ Posted October 5, 2016 Share Posted October 5, 2016 thats just as bad as benefit fraud! Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 thats just as bad as benefit fraud! No it's not. It's planning, so we maximise income. At the mo we're being paid the $155/fortnight FTB part B (approx $4000 for the year). When I report my taxable income at the end of the year, and Centrelink see i've gone over the $100K limit, that means i'd have to pay them the $4000 back. Not a bill I fancy paying!!!! Quote Link to comment Share on other sites More sharing options...
AJ Posted October 5, 2016 Share Posted October 5, 2016 (edited) same for everyone over that limit. You know fine well you will be over the limit but still think you should get benefits? If you knew you were going to be over the limit you should have informed them and not taken the benefit then you wouldnt have to pay it back! its not your money if you are not entitled to it. Why should the tax payer boost your salary by another $4000? Edited October 5, 2016 by AJ Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 (edited) same for everyone over that limit. You know fine well you will be over the limit but still think you should get benefits? If you knew you were going to be over the limit you should have informed them and not taken the benefit then you wouldnt have to pay it back! its not your money if you are not entitled to it. I don't want to get into an argument. If you personally want to pay extra then that's up to you. I don't. I'm not doing anything illegal. It would be nice to be in a position where $4000 is throw-away money, but we're not in such a position. Edited October 5, 2016 by itegoa Quote Link to comment Share on other sites More sharing options...
NickyNook Posted October 5, 2016 Share Posted October 5, 2016 (edited) But you must have at least $50k in the bank (if you're going to be collecting $1500 in bank interest this year). Use some of that to pay the $4000 you'll owe... Edited October 5, 2016 by NickyNook Quote Link to comment Share on other sites More sharing options...
Sammy1 Posted October 5, 2016 Share Posted October 5, 2016 Hi, I'm looking for a bit of advice on staying underneath the $100K FTB (part B) threshold. For those that don't know, if you earn more than $100K (as a single parent or the main earner of 2 parents) you lose it ALL: https://www.humanservices.gov.au/customer/enablers/income-test-family-tax-benefit-part-b My salary is $100K so I wouldn't normally (by the skin of my teeth) go over the limit, except i will do due to bank interest earned (guess about $1500 for the year) Is there any way to keep my taxable income at the $100K or below level? I was thinking take a few unpaid days of work so total taxable income is < $100K. Any other ideas please? Can you salary sacrifice something through work? That may bring you down a tax bracket. Quote Link to comment Share on other sites More sharing options...
Sammy1 Posted October 5, 2016 Share Posted October 5, 2016 (edited) No it's not. It's planning, so we maximise income. At the mo we're being paid the $155/fortnight FTB part B (approx $4000 for the year). When I report my taxable income at the end of the year, and Centrelink see i've gone over the $100K limit, that means i'd have to pay them the $4000 back. Not a bill I fancy paying!!!! That's an easy one to fix, update your income on the mygov website (there is still lots of time to make up the difference by the end of the financial year 2017). I have had to update my income before to ensure that I was being paid the correct amount, it was very simple to do. Edited October 5, 2016 by Sammy1 Quote Link to comment Share on other sites More sharing options...
Kenfrapin Posted October 5, 2016 Share Posted October 5, 2016 (edited) Easy to see it from both sides really When major corporations can legally get away from paying taxes which in turn benefits the losing country as a whole, then why cant individuals do this? It is legal isnt it? In fact, you could be looked at as a fool for not using every legal tax saving/income generating avenue to maximize your income in this environment Then there is the ethical way of looking at things. Would people earning near or above $100k annually really need benefits? That's more than healthy salary no matter how many dependants you have unless you are living well above your means. What if there were no benefits to have in the first place? What about that family who deserve it more and could feel the effect of that money a lot more? It's easier to judge than be judged but unless we are in that position it's not easy. I can't judge the OP but personally, I would do my best to never take from the govt because I am not entitled to anything KnK Edited October 5, 2016 by Kenfrapin Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 But you must have at least $50k in the bank (if you're going to be collecting $1500 in bank interest this year). Use some of that to pay the $4000 you'll owe... The money in the bank is a deposit for a house. The $4000 would come in handy to pay for the waiters to serve caviar and champagne at the party. Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 Can you salary sacrifice something through work? That may bring you down a tax bracket. That might work. I could speak to employer to see if they can do it. Cheers Quote Link to comment Share on other sites More sharing options...
Booma Posted October 5, 2016 Share Posted October 5, 2016 Can you salary sacrifice something through work? That may bring you down a tax bracket. no cause its still included on your payment summary & counts towards if you are eligible for the benefit or not. Quote Link to comment Share on other sites More sharing options...
AJ Posted October 5, 2016 Share Posted October 5, 2016 Maybe Centrelink will pay your mortgage as well then if you ask! Quote Link to comment Share on other sites More sharing options...
Booma Posted October 5, 2016 Share Posted October 5, 2016 That's an easy one to fix, update your income on the mygov website (there is still lots of time to make up the difference by the end of the financial year 2017). I have had to update my income before to ensure that I was being paid the correct amount, it was very simple to do. i think the main problem is the op wants to keep claiming something they arent actually entitled to at the moment. Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 no cause its still included on your payment summary & counts towards if you are eligible for the benefit or not. Just quickly looked it up... https://www.ato.gov.au/Individuals/Super/Growing-your-super/Adding-to-my-super/Salary-sacrificing-super/ "The sacrificed component of your total salary package is not counted as assessable income for tax purposes. This means that it is not subject to pay as you go (PAYG) withholding tax." Need to get my head around that! Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 Maybe Centrelink will pay your mortgage as well then if you ask! They might do. Do you think they'd pay for my holiday home in Bali as well? Quote Link to comment Share on other sites More sharing options...
AJ Posted October 5, 2016 Share Posted October 5, 2016 They might do. Do you think they'd pay for my holiday home in Bali as well?maybe, am sure if there is a way you will find it! Quote Link to comment Share on other sites More sharing options...
Booma Posted October 5, 2016 Share Posted October 5, 2016 Just quickly looked it up... https://www.ato.gov.au/Individuals/Super/Growing-your-super/Adding-to-my-super/Salary-sacrificing-super/ "The sacrificed component of your total salary package is not counted as assessable income for tax purposes. This means that it is not subject to pay as you go (PAYG) withholding tax." Need to get my head around that! you should look at what counts as taxable income for family tax b benefit & you will see salary sacrificed superannuation is included in calculating your taxable income to determine eligibility for this benefit. Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 you should look at what counts as taxable income for family tax b benefit & you will see salary sacrificed superannuation is included in calculating your taxable income to determine eligibility for this benefit. Thanks. Bummer Quote Link to comment Share on other sites More sharing options...
Sammy1 Posted October 5, 2016 Share Posted October 5, 2016 Thanks. Bummer Sorry, it was just an idea. Quote Link to comment Share on other sites More sharing options...
lp77 Posted October 5, 2016 Share Posted October 5, 2016 Hubby struggling to work and we do get family tax benefit but neither of us claim anything else... With three young kids it wd be nice to get more... I understand why you want to keep it but many ppl out there don't get it and don't claim for everything they could .... Quote Link to comment Share on other sites More sharing options...
itegoa Posted October 5, 2016 Author Share Posted October 5, 2016 Hubby struggling to work and we do get family tax benefit but neither of us claim anything else... With three young kids it wd be nice to get more... I understand why you want to keep it but many ppl out there don't get it and don't claim for everything they could .... Why don't you claim for anything else? Are you entitled to something else? Quote Link to comment Share on other sites More sharing options...
lp77 Posted October 5, 2016 Share Posted October 5, 2016 Didn't expect to be out of work for so long... Probably the way we both brought up... Neither of us ever had to claim anything, we've both worked from age 16/18... Moved in January sold house in UK so got money in bank and feels wrong to claim but said to hubby today we need to look as paying 575/week in rent....plus food bills etc.. And kids keep growing lol(not complaining about buying clothes honest..) but let's be honest all the bigwigs who earn $$$ manage to offset tax.... Quote Link to comment Share on other sites More sharing options...
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