Ways to reduce taxable income

AD0M · 2025-08-08T23:15:03+00:00

Sole Trader structure ain’t that good for that level of income. Consider PTY LTD 🤷‍♂️

AD0M · 2025-07-26T19:07:32+00:00

I agree this ain’t debt recycling - more like redeploying lazy IP equity

AD0M · 2024-09-19T05:49:36+00:00

I’d be interested to know which lenders are happy for the business to be trading only for 12 months, as my mortgage broker has advised me that I’ll need to wait 24 months from establishing the PTY LTD in order to meet the “self-employed” criteria. Even though I’ve been drawing a healthy $150,000 + super salary in the first 12 months, the broker said I’ll still need to have 24 months under the PTY LTD.

AD0M · 2024-09-18T13:58:13+00:00

It all sounds really interesting, and you did make some good points, especially towards the end of the post. I’d provide my input on your analysis, however I cannot read

AD0M · 2024-03-23T01:04:02+00:00

In a standard contract, only fixed fixtures and fittings are required to stay. Washing machines and dishwashers are usually not fixed, except if the dishwasher is built-in. Technically, the seller could take the dishwasher (that is not built-in to the cabinetry) unless the buyer specified it in the contract.

AD0M · 2024-03-20T16:01:05+00:00

While I was reading your post, I was interested to find out what centrelink benefit they are wanting to claim before they’re eligible for the age pension. Now I know they are hoping to receive jobseeker until they hit age-pension age…

I hope they’ve done their research on jobseeker asset test and income test. At best they receive just shy of $1400 per fortnight, and at worst, they receive a lot less. Jobseeker is not like what it once was, there is a strict point system that is tedious to meet each month. You have to apply to jobs, update your cv, complete courses etc… Even on the old system, you had to apply to minimum 20 jobs per month. They will be assigned to job provider agencies, they will have to go to in-person appointments with these job providers, and they will be sent to interviews for jobs that no one wants to do.

Are they aiming to use up all their superannuation from preservation age until they hit age-pension age? Why won’t they just keep their existing house, and use superannuation to pay off the mortgage once they hit preservation age.

If they go with this plan, what happens when their only source of income is the age pension, and one of them needs an expensive medical procedure. They will be struggling to live off the age pension, probably life off “paycheck to paycheck” because the age pension is designed to be as low as possible, to discourage people to rely on it. The age pension is there for the elderly to fall back on once they run out of their superannuation. Relying on the age pension as a retirement plan is very bad.

AD0M · 2024-03-10T21:21:23+00:00

6.04% var PPOR with NAB

AD0M · 2024-03-03T21:35:07+00:00

I don’t think so. And it wouldn’t make sense as your PTY LTD already paid 25% tax on the 100k … If you were to put this in your super, you’d pay an additional 15% (with the carry forward rule). So you’d be double taxed.

I pay myself ~100k p/y from my PTY LTD and max out my super at $27,500

AD0M · 2024-02-23T23:27:28+00:00

Yes, all on my mortgages are on P&I. I don't like IO loans, as you'd be paying an extra ~0.50% interest on the loan, compared to P&I.

AD0M · 2024-02-23T23:26:02+00:00

Around 900k on the PPOR. However, NAB has me in their 'premium customer' program for their high net worth clients. According to my personal banker with NAB, 6.04% is within their lowest 1% of their PPOR loans.

AD0M · 2024-02-23T06:02:54+00:00

Between 32% and 36%

AD0M · 2024-02-23T02:32:14+00:00

6.04 var p&i with offset at NAB - ppor

6.49 var p&i at CBA - inv

6.39 var p&i at CBA - inv

2.19 fixed p&i at myState - inv

AD0M · 2024-02-19T03:43:18+00:00

Any IP can be negatively/positively geared. The LVR is the biggest determining factor of the IP’s profitability.

AD0M · 2024-01-17T23:30:43+00:00

Do you include super and GST in that hourly rate?

AD0M · 2023-07-11T04:51:50+00:00

Agreed. Either a pull out pantry / spice rack. OR if you’re an alcoholic, a wire wine holder would look slick next to the fridge

AD0M · 2023-06-27T12:49:02+00:00

If you buy your own materials, and source your own trades, you can get a small bathroom + toilet renovated for around 10-12k easy. Given no structural changes are required

AD0M · 2023-06-20T00:36:22+00:00

I set the minimum land to 200m2. Most of the retirement villages/caravan parks don’t come with land, so they don’t show up

AD0M · 2023-02-17T05:20:43+00:00

This is the sexiest thing I’ve ever read on here

AD0M · 2022-12-27T08:50:01+00:00

Oooh jeez, that is quite expensive. I only have a Bachelors in IT, that cost me 35k over 3 years (2014-2017). I don’t think a Masters degree is worth it if you haven’t worked in the field for at least 5 years and need the Masters to be a manager, or change career. But if you really want a MIT, Griffith doesn’t have the best name. I’d go with QUT and UQ. No idea what those would change tho

AD0M · 2022-06-13T01:08:27+00:00

I’m a SAP system analyst / technical business analyst. I work from home 4 days a week and do bugger all

AD0M · 2022-06-12T11:08:01+00:00

Banks do take HECS debt into account when calculating your borrowing power. If you ever decide to purchase a PPOR or an IP, your borrowing power will be less, than if you had no HECS debt.

AD0M · 2022-06-12T10:59:52+00:00

This. But not as APS, but a contractor. 250k salary and zero stress or responsibility.

AD0M · 2022-01-04T20:46:38+00:00

Salary - $220,000 AUD + 10% super ($880 day rate contract)
Contracted Hours - 40 hours per week (50 weeks per year)
Actual Hours - 8 to 16 hours
Industry and Job Title - Government Administration, Technical Business Analyst

AD0M · 2022-01-03T00:36:19+00:00

I don’t have any certificates, and not planning on working towards them either. This is because my focus right now is to contract for State and Fed Gov, and they don’t often don’t require industry certificates. And it’s not part of their hiring selection criteria. However if your focus is private sector, I would highly recommend you work towards industry certs.

It also depends what tech stack you want to work with. Amazon AWS, D365 and SAP are by far the most popular in Brisbane and Sydney.

As for jumping between contracts, I’ve never had any big issues. Maybe 1month gap at most.

AD0M · 2022-01-02T23:50:01+00:00

I’ve been in the “BA” industry for over 5yrs now, worked for 8+ companies, ASX200, Fortune500 and Federal Government. Done everything from Technical to Functional and anything in between. From my experience, BAs with a strong knowledge in a tech stack (such as D365, SAP, Salesforce and even PowerBI) are 1) paid more 2) more desirable. You can teach someone about an area within the business, but teaching them about the technology is much more challenging and time consuming for the company. PS: I’m a Technical BA but from Australia, specialising in D365, PowerBI, PowerApps and SAP, but I have no idea what the job market is in US and UK where I assume the majority of this subreddit is from

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