Tax Question

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The Sultan

The Sultan

Norm Smith Medallist
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Mar 29, 2007
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Just watching show me the money.. and had a question about something.

IIRC farmers get lots and lots of tax breaks, apparently a certain inner in Sydney suburb has one of the highest population of farmers in Australia .. so if say an AFL footballer put his primary occupation down as farmer would he be saving s**t tonne of money on tax ?

YEs I have been drinking
 
The current system is based on self assessment. So the answer is yes, until the highly likely audit happens, then the answer is no plus penalties.
 
I'll also add professional sports people can take advantage of income averaging provisions to lower their tax at times.
 

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Sportsmen set up businesses that own their likeness rights and get their salary paid to that. They pay less tax that way. They dont need other rorts
 
The Sultan said:
Just watching show me the money.. and had a question about something.

IIRC farmers get lots and lots of tax breaks, apparently a certain inner in Sydney suburb has one of the highest population of farmers in Australia .. so if say an AFL footballer put his primary occupation down as farmer would he be saving s**t tonne of money on tax ?

YEs I have been drinking
Click to expand...
I forgot I wrote this… but to clarify if that footballer did actually have a farm (of sorts) that did bring in an income. It would be possible for them to wash some of his footy income thru the farm to reduce tax
 
The Sultan said:
Just watching show me the money.. and had a question about something.

IIRC farmers get lots and lots of tax breaks, apparently a certain inner in Sydney suburb has one of the highest population of farmers in Australia .. so if say an AFL footballer put his primary occupation down as farmer would he be saving s**t tonne of money on tax ?

YEs I have been drinking
Click to expand...
The old "Collins Street Farmer!"
 
2 main reasons.
No 1 you buy a farm. It has lots of depreciable assets connected to the farm. Farm might cost $8M. Land $6M depreciable assets $2M. Under small business depreciation rules lately you can also claim 100% depreciation in year 1 (even depreciation over conventional time periods gives a good result) so it creates a big tax loss of $2M and means you pay no tax for a number of years, even if you are earning say $200K from other sources. And of course you haven't actually had to stump up the $8M for the farm purchase has most of the purchase price is loaned from the bank.

No 2 Primary Production Averaging also smooths out bigger years.

You can also build your herd of sheep/cattle/whatever up and get big unrealised gains from the natural increases. A lamb is valued at $4 and a calf is valued at $20. Reality is they are worth much more than that. So if you have a herd of 5000 sheep tax book value has only increased $20K but in reality your wealth has increased $500K.

Also a lot of government grants aimed at farmers including interest free loans.
 
Another tax question. I bought a laptop last financial year. I bought it mainly for the purpose of doing my PhD on. However I've probably be using it 50% for work, 50% for PhD. Am I able to claim 50% of the purchase price as a deduction, even though I am provided a laptop from work?
 
raskolnikov said:
Another tax question. I bought a laptop last financial year. I bought it mainly for the purpose of doing my PhD on. However I've probably be using it 50% for work, 50% for PhD. Am I able to claim 50% of the purchase price as a deduction, even though I am provided a laptop from work?
Click to expand...
You can claim a laptop for study expenses (it's a depreciating asset so depending on the price it may be over a number of years).
 
raskolnikov said:
Another tax question. I bought a laptop last financial year. I bought it mainly for the purpose of doing my PhD on. However I've probably be using it 50% for work, 50% for PhD. Am I able to claim 50% of the purchase price as a deduction, even though I am provided a laptop from work?
Click to expand...
Or you could just lie and say you use it 100% for work, like I do with all of my laptops.
Who cares if you have another laptop. My boss gives me a PC too.
 
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