Mr Taxman

"People earning $200,000 a year will pay more than $40,000 in additional tax over the next decade after Labor denied high earners meaningful relief from bracket creep in a rewrite of the stage three cuts.

The government has been cheered for redirecting tax relief to lower-income earners but Deputy Opposition Leader Sussan Ley has described the changes as a “lifetime tax on aspiration” and an “attack” on the future incomes of Gen Z and Millennials.

Analysis by Adrian Raftery, the principal of chartered accountancy business Mr Taxman, shows people on incomes between $160,000 to $210,000 will pay extra tax ranging from $8486 to $40,782 in today’s dollars over the next 10 years ..."

Read this article in the The Australian Financial Review about how the changes to the Stage 3 tax cuts will make a significant impact on some financial plans.

The $40,000 tax whack coming for high earners The top 5 per cent of taxpayers will pay nearly 42 per cent of all personal income tax next year, the equivalent of $128 billion.

Chartered accountant and Mr Taxman founder Adrian Raftery said since fringe benefits tax was introduced in the 1980s there had been many rule changes, and in recent decades the idea of salary packaging a car had lost some lustre and value.

However, government changes that made electric vehicles exempt from fringe benefits tax had changed the game dramatically.

“I can see a benefit again in why you would want to package – I’m in favour and I am considering it myself in terms of my next car,” Dr Raftery said.

A few quotes with Anthony Keane in today's Herald Sun about salary packaging.

How salary packaging can deliver big bucks Salary packaging to save money is experiencing a renaissance as government policies around electric vehicles push extra cash into peoples’ pockets.

Super: how to boost it by $900,000 this calendar year (afr.com)

How can you potentially do that? Have a read of this article in The Financial Review written by Duncan Hughes today that I provided a few quotes for.

https://www.afr.com/wealth/personal-finance/smart-timing-can-get-almost-900-000-into-your-super-this-year-20240116-p5exs5

Smart timing can get almost $900,000 into your super this year Are you selling a house or have you received a windfall? Here’s how to add some spark to your retirement savings.

"That’s on top of last year’s increase of 7.1 per cent and means a debt of $9000 in 2022 will have increased to about $10,100 by July 1, while a debt of $40,000 will be around $45,000, according to estimates by Adrian Raftery, principal of Mr Taxman chartered accountants."

A few comments with Duncan Hughes in today's Financial Review about some tax saving strategies to consider to start the New Year. Its really interesting to see how much HELP debts are growing in the past year due to CPI (7.1% in June last year and probably around another 5% this coming June).

Read the full story here:

Eight smart ways to reset your finances and boost your wealth This is an ideal time to review personal and family finances, set new goals and take the first steps to refresh your strategy.

GETTING A LOWER TAX REFUND THIS YEAR? WHAT CAN YOU DO?

There has been much media this week about people receiving a significantly lower refund - due to a) no LMITO; b) higher interest income; c) lower WFH expenses - so what can you do? I recommend the following:

1. Consider engaging a Registered Tax Agent for your tax return to maxmise your deductions as much as possible (but note: they will be limited to do much given the end of financial year is already over)

2. If you have a payable defer your lodgment (til 31 October for self-preparers or 15 May if you appoint a tax agent before the end of October)

3. Start 2023-24 Tax Planning now so that history doesn't repeat itself

4. Spend $20 on buying my Best Selling book via Amazon & assist with not only this year's tax but future years as well. The purchase will be tax-deductible next year.

101 Ways to Save Money on Your Tax - Legally! 2023-2024 101 Ways to Save Money on Your Tax - Legally! 2023-2024

For the last three years they have received some generous refunds and probably believed it would happen again,” Dr Raftery said.

“Historically they have banked on their tax refunds to pay for a car rego, credit card debts or some presents. All of a sudden they’re getting a lot lower tax refund, if anything, this year.”

“I have tried to forewarn my clients: hate the system, don’t hate your accountant.”

A few comments with Anthony Keane & Tim Loh in the Herald Sun about the three reasons why tax refunds are significantly lower this year.

Why your tax refund is shrinking this year It’s the tax slug surprise that is not really a surprise, and it’s catching out Australians who were hoping for a handy refund.

Accountancy author and former academic Adrian Raftery believes there will be staff losses at PwC as a result. Not from the firm cleaning out people with knowledge of the scandal – which it has failed to do – but from the good players who realise the brand damage will strip them of work.

“If I was the head of those other three big firms, I’d definitely be making a few extra phone calls,” says Dr Raftery.

“There is some great staff in there and it will be easy to say ‘you don’t want to be tarred with the same brush’ so I think it will be easy to entice not just partners but their whole staff.”

A few comments on the potential fallout from the PwC scandal. Yes there might be some bad apples but it’s still a good orchard. A lot of great practitioners within PwC and I feel for them.

Stop outsourcing says consulting partner: PwC scandal It’s a loud and clear wakeup call when in light of the PwC Australia tax leak scandal a former “big four” partner thinks the government needs to stop outsourcing so many big decisions to the big accounting firms.

“If you’re thinking about buying that big piece of equipment or upgrading your commercial vehicle, the time to do it is over the next few weeks. But don’t stress if you don’t buy the item until after July 1. You can still claim the cost, but it will be over a number of years, instead,” says tax expert Adrian Raftery.

“But remember, don’t spend if you don’t need to. And don’t buy non-commercial, passenger vehicles for this concession as fringe benefits tax will sting in years to come,” he recommends.

A few year end tax tips with Alexandra Cain in her piece in The Sydney Morning Herald

Five top tips to maximise small business EOFY tax deductions It’s tax season again, which means now’s the time to review all your business expenses to make sure you’re claiming all allowable tax deductions.

“There are some bank balances copping a hammering out there”

Mr Taxman founder Adrian Raftery said he did not see a dangerous mortgage cliff “quite yet, as the rates are still lower than what they were in April 2012”.

“There may be some who will feel the pinch with cash flow – especially those who bought at market highs – and be forced to sell, but for the vast majority I expect, or maybe hope, that they still have a bit of a buffer to absorb these rate rises,” he said.

A few quotes with Peter Koulizos in Anthony Keane's article today on the rising interest rate impact on negatively-geared investors.

Larger tax refunds for property investors has sting in the tail Many of Australia’s 2.2 million real estate investors are set for a sharp rise in their tax refunds this year.

Thanks to a relatively quiet 2023-24 Federal Budget, I have been able to have one of my earliest Budget nights ever & have completed my edits for the 13th edition of 101 Ways to Save Money on Your Tax - Legally!

Available to pre-order online in all good book stores & Amazon.

The Federal Budget is next Tuesday which means that the next edition of my book is coming soon!

I never thought I would have an article where I am heavily quoted with a tax officer about clowns, di**os, botox & b***s! (and a cute "guard dog")

Have a look at some of the attempted tax claims that we have seen attempted over the years in this funny article by Anthony Keane in today's paper.

Botox and breast implants some of Australia's wackiest tax deductions A $145,000 luxury car, a trip to Italy, botox, teeth whitening and breast implants are just some of the weird items Aussies have tried to claim as work-related expenses.

Good luck for the season ahead.

Mr Taxman came on board as a sponsor of the GIANTS in 2021 and we welcome him back in 2023. A keen AFL supporter and expert in everything tax. He has also published some handy books on the topic as well and you may have seen him on breakfast TV!

Follow him at Mr Taxman or call 1800 TAXMAN.

We thank him for his support!

🧡🖤BG23

Good luck lads

📢 Congratulations Mr Taxman Metro Gold facing Penrith Cricket Club this weekend at Petersham Oval in the Grand Final.

This is our first appearance at the big dance since 2015/16. Incidentally, our opponent that time was Penrith as well, who went on to win and produce a string of first graders. Overall, this is our fourth Grand Final appearance in the competition, and we have one title secured by the finest of margins v Western Suburbs at Pratten Park in 2008/09. Incidentally, this is also our first time hosting a Metropolitan Cup Grand Final.

Mr Taxman founder Adrian Raftery says the removal of Covid lockdowns has resulted in more people using their cars for work-related purposes.

“Do a log book for the next 12 weeks if you haven’t already,” he says.

A few tax tips in today's Herald Sun The Daily Telegraph

Tax moves to make now for a big 2023 refund Thousands of extra tax refund dollars can be generated by people who perform a few financial tricks now, rather than wait until the traditional end-of-financial-year rush.

A special shout out to the individuals - in white cars of their own - who “borrowed” our vehicle overnight at 3.52am from our own driveway. Nice footage on CCTV and also at the petrol station in Carrum where you did a runner.

In his latest 2022-23 edition of 101 Ways to Save Money on Your Tax Legally, chartered accountant Adrian Raftery says couples should try to level their income so they are both paying the same marginal tax rate. “While income from personal exertion such as your salary cannot be transferred to the other partner, there is scope to have passive income from investments transferred if the assets are held in the lower-earning spouse’s name,” Dr Raftery says.

A few tax tips with Anthony Keane in the Herald Sun today.

10 ways to grab a bigger tax refund Money-saving ideas are like gold as living costs soar, but one key area of potential savings is often overlooked by Australians: tax deductions.

Chartered accountant and Mr Taxman founder Dr Adrian Raftery says “it’s a pretty substantial tax strategy over the long term”.

“Many SMSF trustees get spooked with the stockmarket yet are comfortable with property, and more particularly they are extremely relaxed with the concept of borrowing money in order to help fund a property purchase,” he says.

A few comments with Anthony Keane in the News Corp syndicated papers today.

PS I probably wouldn’t describe it as a “tax dodge” like the sub-editors did

Australia’s biggest tax dodge – how to save $500,000 There’s a fine line between tax avoidance and tax evasion in the minds of many people, even though one of them is illegal.

Adrian Raftery, the principal of Mr Taxman, says a common mistake is to think you can get a substantial advantage by ploughing big dollars into tax-deductible purchases late in the piece.

“It always surprises me when people think that tax planning only occurs in June,’’ he says.

“If you want to save as much as legitimately possible on your largest expense (tax), it is best to start as early as possible. Tax planning should be a 365-day per year exercise, not one merely carried out in the last few days before 30 June.’’

https://www.adelaidenow.com.au/business/start-your-tax-planning-now-to-maximise-deductions/news-story/a0b1658eb55a576240a790a12472878c

Why EOFY sales splurges are a tax mistake Don’t make the mistake of leaving major tax-deductible purchases to the end of the financial year – the time to act is now, experts say.

Starting the new financial year with the standard media interviews … you reckon after all these years I would have learnt to not party as hard at those EOFY parties, knowing that I have to front up bright and early the next morning. Oh well I guess you only live once.

It’s a bit like the NRL or AFL Premiers the day after their win … or Karl Stefanovic backing up after the Logies. Maybe the people just want to see an accountant who partied too hard?? Who knows!

Ironically it was Karl’s brother Pete who interviewed me this morning on Sky News Australia on First Edition.

More ironically, today is probably the worst day to give a tax tip about the previous financial year other than don’t claim what you haven’t incurred and kept a receipt for. And to buy my book (which I discretely put in a plug for along with my employer AFL Masters National).

Enjoy your day and weekend everyone. Now where are those Panadols and Beroccas …