6 TAX TIPS FROM KERRY PACKER’S ACCOUNTANT

# HOW TO BEAT THE GOVT THIS YEAR! 

# ‘TAX BRACKET CHANGES WILL NOT SAVE YOU TAX, THEY ARE DESIGNED TO MAKE MORE MONEY FOR THE GOVT’

# ACCOUNTANT ALLAN MASON OFFERS NEW ADVICE AHEAD OF TAX BRACKET CHANGES FROM 1 JULY 2024

# MASON OFFERS 6 TIPS THAT CAN PUT MORE MONEY IN YOUR POCKET

With tax bracket changes that came into effect 31 July 2023,  Kerry Packer’s former accountant Allan Mason – best-selling author of “Tax Secrets of The Rich” – has collated his top 6 tips for Australian taxpayers to ensure they are not the ones paying for the Government’s mistakes and budget missteps. 

TO INTERVIEW ALLAN MASON email marta@marksonsparks.com or call Marta Wiacek on 0409 291 785, or email max@marksonsparks.com or call Max Markson 0412 501 601. 

In his book, Allan outlines that the government in 2023 has budgeted for an increase of nearly 38% in tax revenue and says, “if you think that interest rates are killing you, wait till you see the effect of a 38% increase in tax. Given that salary and wages earners account for nearly 60% of tax revenue, my prediction is that the poor will get poorer. Big business finds ways to avoid this, however average taxpayers often don’t.”

He explained, “With inflation wages increasing, it is highly likely that these increases will push you up in the 37% or 45% tax bracket. This is called bracket creep. The government loves this as it results in a tax increase without the government doing anything.“

“Then on 1st July 2024 when the tax thresholds change, income from $45,000 to $200,000 will be taxed at 30% instead of 37% up to $180,000 and 45% on the extra $20,000. On top of the above, everyone pays a 2% Medicare levy, however it is wrong to think these changes will save you any tax. It won’t because bracket creep will make sure any increases are slugged accordingly.”

With the tax threshold changing, here are Mr Mason’s top 6 tips:

1. Bring forward expenditure from 2024 into 2023. 
2. If you own rental property, approach your bank about pre-paying a year’s interest on your loan. Also, consider any repairs that are needed or upgrades, and make sure you maximise any deprecation claims by getting a depreciation report.  
3. If you haven’t used all your superannuation caps in prior years, it would pay to use them now as you are able to carry forward up to 5 years of unused caps. 
4. If you need a new computer, phone, or anything else related to your job, purchase these before June 30, 2024, and get the higher tax deduction in this year’s tax.
5. If you can, push any extra income into the 2025 tax year. This includes bonusses, that new contract. Start after July next year.  
6. If you have a property sale on the horizon, I recommend deferring this into the 2024 tax year. Be mindful however, that the contract date will determine the tax year applicable. 

Mr Mason also cautions against giving the ATO your money interest free, adding that if you have rental property losses or a lot of work expenses you incur, you can vary your weekly tax. 

“This is very simple to do on your MyGov account. For example, if you know you will have $20,000 of losses on your rental property and you are paying tax at the 45% rate, that $20k is worth $9k in tax refunds.  It would pay to vary the weekly tax being deducted by $173, instead of waiting until July or August to get that refund,” he said. 

TO INTERVIEW ALLAN MASON email marta@marksonsparks.com or call Marta Wiacek on 0409 291 785, or email max@marksonsparks.com or call Max Markson 0412 501 601. 

Get your copy here: Tax Secrets of the Rich – Broadview Publishing