101 Ways to Save Money on Your Tax – Legally! 2013 – 2014

We all need to pay our fair share of tax, but why pay more if you legally don't have to? This 2013–2014 edition of 101 Ways to Save Money on Your Tax—Legally! covers all phases of your life, from studying or working to raising a family, embracing retirement and beyond. Adrian Raftery, aka Mr Taxman, provides substantial money-saving tips to help you minimise your tax debt and maximise your tax refund. These tips apply to: employees students families superannuation members business owners investors with interests in rental properties and share portfolios. Whether you use a few tips or all 101, you can feel comfortable knowing that just one tip alone will be more than enough to pay for the tax-deductible investment you make in this book.

About the author xi How to use this book xiii Introduction xv Part I You and your family 1 Tip 1 Marriage 2 Tip 2 Income splitting 5 Tip 3 Dependant spouse tax offset 7 Tip 4 Dependant (invalid and carer) tax offset 9 Tip 5 Children 10 Tip 6 Paid parental leave and the baby bonus 13 Tip 7 Dad and partner pay 15 Tip 8 Child care 17 Tip 9 Low–income earners 19 Tip 10 Senior Australians 21 Tip 11 Other government benef its 24 Tip 12 Family breakdown 27 Tip 13 Death 29 Tip 14 Trusts 32 Part II Your employment 35 Tip 15 Car usage 37 Tip 16 Methods to claim car travel 39 Tip 17 Travel 42 Tip 18 Uniform 44 Tip 19 Home off ice 46 Tip 20 Other work–related deductions 49 Tip 21 Keep those receipts 51 Tip 22 ATO hit lists 54 Tip 23 Redundancy 57 Tip 24 Working a second job 59 Tip 25 Salary sacrif ice 62 Tip 26 Fringe benef its 64 Tip 27 Living–away–from–home allowance 68 Part III Your education 73 Tip 28 Claiming self–education expenses 74 Tip 29 The $250 threshold 77 Tip 30 Self–development courses 79 Tip 31 Higher Education Loan Program 82 Tip 32 Student Financial Supplement Scheme 85 Tip 33 Austudy and ABSTUDY 87 Tip 34 Other government assistance 90 Tip 35 Scholarships 93 Tip 36 School building funds 96 Tip 37 Education savings plans 98 Part IV Your investment property 101 Tip 38 Negative gearing 103 Tip 39 Interest 106 Tip 40 Depreciation 109 Tip 41 Low–value pooling 112 Tip 42 Repairs and maintenance 115 Tip 43 Travel to see your investment property 118 Tip 44 Borrowing expenses 120 Tip 45 Legal expenses 123 Tip 46 Other rental property deductions 124 Tip 47 Foreign investment properties 127 Tip 48 Capital gains tax 129 Tip 49 PAYG withholding variation 132 Tip 50 Genuinely available for rent 134 Part V Your shares 137 Tip 51 Dividends 139 Tip 52 Franking credits 142 Tip 53 Dividend reinvestment plans 145 Tip 54 Lower income earners 146 Tip 55 Borrowing to buy shares 149 Tip 56 Other allowable deductions 151 Tip 57 Shares and capital gains tax 153 Tip 58 Realise capital losses 155 Tip 59 Inheriting share portfolios 158 Tip 60 Share trader versus share investor 160 Tip 61 Rights and options 163 Tip 62 Employee share schemes 164 Tip 63 Share portfolios within self managed superannuation funds 167 Part VI Your superannuation 171 Tip 64 Contribution limits 173 Tip 65 Compulsory employer contributions 176 Tip 66 Salary sacrifice 179 Tip 67 Super co–contribution 182 Tip 68 Transferring foreign super 185 Tip 69 Self managed superannuation funds 187 Tip 70 Buying property within SMSFs 191 Tip 71 Gearing through a super fund 193 Tip 72 Accessing your super 196 Tip 73 Transition to retirement 198 Tip 74 Allocated pensions 199 Tip 75 Death benefits 201 Tip 76 Lost or unclaimed super 203 Part VII Your business 207 Tip 77 Choosing the right business structure 209 Tip 78 Tax obligations 214 Tip 79 Record keeping 217 Tip 80 Deferring tax 220 Tip 81 Trading stock 223 Tip 82 Bad debts 225 Tip 83 Home–based businesses 227 Tip 84 Employing people 230 Tip 85 Tax concessions and offsets 233 Tip 86 Selling or closing down 235 Tip 87 Personal services income 238 Tip 88 Non–commercial losses 239 Tip 89 Franchising 241 Part VIII Miscellaneous 243 Tip 90 Overseas income 244 Tip 91 Get a great accountant 247 Tip 92 Lodging your tax return 249 Tip 93 Amending returns and objecting to assessments 252 Tip 94 ATO data matching 255 Tip 95 Problems paying your tax 258 Tip 96 Medical expenses tax offset 260 Tip 97 Levies 263 Tip 98 Zone and overseas forces tax offsets 266 Tip 99 Tax–effective investments 269 Tip 100 Tax planning is a 365–day process 270 Tip 101 Just do it! 272 Glossary 275 Bibliography 293 Index 295

ADRIAN RAFTERY has over 20 years' experience in providing accounting services and financial advice to businesses and individuals. As a recognised tax expert, Adrian appears frequently on TV and contributes to magazines and newspapers. Visit www.mrtaxman.com.au .