Fbt vs claiming inrest as expense

Discussion in 'Accounting & Tax' started by melbinv82, 16th Apr, 2020.

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  1. melbinv82

    melbinv82 Active Member

    Joined:
    5th Nov, 2019
    Posts:
    43
    Location:
    Melbourne
    I have recently bought an ip. Only 2 months ago. I haven't seen a tax accountant yet . Just a general query

    I am able to salary package investment loan through work. There is no fbt for it. So my interest for ip which will be approx $11300, I will be able to get tax free from my gross income.

    But if I do this, then I can't use interest the way most people do for deducting from the income they generate from the ip.

    My ip is negatively geared, by approx $2000-3000 if I add all expenses+ interest + depreciation - rent. This is rough estimate.

    Has anyone salary packaged their interest for ip before. My max tax rate is 32.5. Is it worth it?

    Thanks
     
  2. Mike A

    Mike A Accountant Business Member

    Joined:
    24th Jun, 2015
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    2,252
    Location:
    MELBOURNE
    doesn't sound like the most tax effective way of structuring it
     
  3. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,124
    Location:
    Sydney
    Other exempt benefits would be smarter than using a otherwise deductible expense. There is no fringe benefit as such. You would be reduce salary and also lose the property deduction. A zero sum game.

    I have seen health workers choose to take benefits like a prepaid expenses card they can buy groceries etc with. Often smarter
     
    craigc and melbinv82 like this.