Buying PPOR as a Nurse

Discussion in 'Innovative Property Investment Techniques' started by Archaon, 17th Jan, 2020.

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  1. Archaon

    Archaon Well-Known Member

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    At the recent Sydney Meet-up, someone mentioned that if you are a nurse, you are able to claim interest on your PPOR as a tax deduction.

    We got onto this topic as I was annoyed that Australian residents are more beneficial to rent out their home and rent else due to tax law in Australia, there would be alot less complexity if everyone could claim the interest on their own home instead of needing to rent elsewhere, I believe they do this in the states.

    What are your thoughts on this @Terry_w @[email protected] worthwhile endeavour, can you claim anything other than interest?
    Is it limited to practicing nurses, or will the accreditation do?
    Is it a specific type/field of nursing (I.e RN) or all types?

    Regards,
    Arc
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I have never heard of such a thing
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    CLutching at straws the only thing I can think of is when nurses are in remote areas and living in GEHA housing and then rent out their PPOR back home. But it doesn't sound right to the conversation and isn't particular to nurses but many jobs that end up in remote areas in govt housing.
     
  4. Angel

    Angel Well-Known Member Premium Member

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    If you work for a non profit organisation such as a school or hospital, you can salary sacrifice your "bills" into a system that sends some of your salary into your Superannuation and the Salary Sacrifice company, such as Remserve, does things with your budget. I know of someone who worked in a hospital who had his house payments under this scheme, but it didn't float my boat so I have never followed up on it.
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Nurses cannot claim any extra interest. Perhaps it is the non profit employer salary sacrifice thing that Angel mentioned
     
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  6. KateSydney

    KateSydney Well-Known Member

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    You can check the ATO site under Non Profit Organisations and FBT

    Certain public benevolent institutions, public hospitals, health promotion charities etc are exempt from paying FBT.

    How much you can sacrifice is capped - I think for hospitals it might be $17K per annum.

    Usually if you enter into a salary sacrifice agreement with your employer, it results in them having to pay FBT on the benefits you include in your packege.
    So your employer usually reduces your salary to claw that back, so to speak.

    Now if your employer is exempt from FBT they won't deduct it from you.
    I don't know anything about tax in general and am not in taxation or accounting or health so don't take this as gospel.
    I'm very certain that you must negotiate this in your salary package before commencing work.
    So the people to talk to would definitely be the HR department of your hospital because surely they would be doing this all the time?

    I think I might have seen all this on the NSW Health Dept site
     
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  7. geoffw

    geoffw Moderator Staff Member

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    Yes, @KateSydney is correct. The amount may vary.
    FBT exemption

    It may be limited to charities rather than not for profits.

    It's not limited to nurses - it can be for any employee of a qualifying institution. Many aged care institutions, for instance, offer this to aged care workers,though they earn such a low salary it's not really worth a lot.

    It's not limited to mortgage payments. It can be for car payments, groceries, meals and entertainment (subject to limits) etc. Any institution which offers this will have its own set of procedures.
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    As an aside, RNs have access to 85 % no lmi and 98 % lvr inc capped LMI loans with Bankfirst.

    Eric Wu is a specialist in Nurse lending.

    ta
    rolf
     
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  9. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Salary sacrifice of personal expenses up to the threshold is a fringe benefit. The hospital will pay the bank directly. It does mean you may need a IO split on the loan as that is the best benefit v';s P&I. It is concessional for some employers like hospitals etc. The smart ones who access this split their work between a private and public hospital to double dip. Yep.

    The ALP looked at ripping it away a few years back and realised they would harm the lowest paid hardest working people.

    Some lenders struggle with fringe benefits and servicing esp with this issue. The salary packing team from the hospital can usually provide examples. Important you dont sal sac IP expenses however.
     
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  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Have quite a few medicos that do both

    ta

    rolf
     
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  11. Osoda

    Osoda Member

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    Out of topic but is it legal to salary pack in two hospitals if your part time on both? Or will you have to pay ato on tax time?


     
  12. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    I can't comment on the legality, but I've seen people holding multiple jobs and getting salary packaging benefits from each employer.
     
  13. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Totally legit. I often see nurses etc with two P/T jobs in two health districts eg Westmead Hospital + Auburn Hospital and they double dip. They all LOOK for this. Its a known benefit but involves juggling two jobs really. But two hospitals in same area health region may be on the same payroll. Public + private is also a option. Thisdouble dip issue was under review back a few years and seemed to look like penny pinching from nurses and copped bad media.