It's that time of the Year....

Gentle_Chief

Gentle_Chief

Its that time of the Year.....

Well I truly love July, August.

Yes it is Spring time but then, there is more to it..... ATO Tax Refunds.

I Just LOVE getting that Big Paycheck from Big Brother! All the hard yakkas put in through the year to pay every bill - various councils charges, water charges, All the repairs undertaken (those hot water heaters and I are jinxed - 3 call out charges for the heaters alone this year & 2 new installations - ouch!), Strata fees, Travel to property, Stationary, Phone, Internet etc etc. Aaarrrghhh. Did I mention the Interest Payment?!! :eek:

And then the big ticket write-offs items like the Building Allowances and Plant & equipment which are the easiest on the pocket as they are Non-cash flow Loss. I just love these two items. Thank god for them :p

Well I have on purpose not applied for Income Tax variation withheld (ITVW). The main reason being we are managing fine with the cashflow and see this lumpsum tax refund at th end of the financial year as enough deposit for yet another purchase.

While I wait for the 25K back from the tax office, I am lazily browsing domain.com to find the next purchase, while my wifey is looking at stayz.com for a well deserved holiday!!! :cool:
 
Gentle_Chief said:
Well I have on purpose not applied for Income Tax variation withheld (ITVW). The main reason being we are managing fine with the cashflow and see this lumpsum tax refund at th end of the financial year as enough deposit for yet another purchase.

While I wait for the 25K back from the tax office, I am lazily browsing domain.com to find the next purchase, while my wifey is looking at stayz.com for a well deserved holiday!!! :cool:
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You've just given the tax office an interest free loan, and lost out on like a thousand dollars in interest. Why is that good?
 
Hey, if you guys don't care about that thousand bucks a year, I'll take it off your hands! I read somewhere recently that it is possible to turn one dollar into ten by investing wisely. So that 'lazy 1k' could be used to make you 10k (or more) over time. Multiply that every year and think about how much you're losig by giving up that 'lazy 1k'. Especially when you don't have to work for it.
 
I also like to get our refund cheque in a lump sum. If I got it each week, it would disappear :eek:.

I do much more with it as a lump sum.
 
wylie said:
I also like to get our refund cheque in a lump sum. If I got it each week, it would disappear :eek:.

I do much more with it as a lump sum.
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I'm with you, as much as it pains me to know that that ATO has my money! :mad:

Might look into it a bit more seriously this year.
 
Mark Laszczuk said:
Hey, if you guys don't care about that thousand bucks a year, I'll take it off your hands! I read somewhere recently that it is possible to turn one dollar into ten by investing wisely. So that 'lazy 1k' could be used to make you 10k (or more) over time. Multiply that every year and think about how much you're losig by giving up that 'lazy 1k'. Especially when you don't have to work for it.
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Hi Mark,

Set it up, if you can get $1000 and I still get my tax return, wihtout me having to do anythign extra (since I'm not the one benefiting), then I'm on board, go for it....

Tell me where to sign and you can have it....

Or were you just looking out for my best interests ?

cheers
 
alexlee said:
You've just given the tax office an interest free loan, and lost out on like a thousand dollars in interest. Why is that good?
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For someone copping a $25k REFUND I'd say the $1k is not too big a loss to worry about. :D

having the tax refund "paid back" to you each week through the paycheck is a better idea, but I reckon for a lot of people it is too tempting for them to spend it on "stuff".

The majority of folk are probably better off to cop the end of year lump sum, and HOPEFULLY they will re-invest it to increase the IRR.
 
We will get $25-30k back this year. As usual, it will be dumped into our PPOR ready to be withdrawn when we buy more property, or do more renos. Until then, it can reduce our non-deductible interest.
 
BayView said:
For someone copping a $25k REFUND I'd say the $1k is not too big a loss to worry about. :D

having the tax refund "paid back" to you each week through the paycheck is a better idea, but I reckon for a lot of people it is too tempting for them to spend it on "stuff".

The majority of folk are probably better off to cop the end of year lump sum, and HOPEFULLY they will re-invest it to increase the IRR.
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Mine's only $7k, but Im happy with it, I'd dare say gentle chief worked harder than me.

Mine will pay off the last of my non deductable debt, or in fact I may bet rid of it yet the time I get my tax return and exrtras will go into an offset against the IP loans

But I do need a new loung suite
 
Well in all honesty, we were thinking that we would need to PAY back to the ATO this year.

All our IPs are CF +ve at our current Interest rate of 6.51%

Also the Low Interest rates due to GFC for a good part of 2009 contributed to cash surpluses.

Interest Outgo was 140K wheras rent Inflow for the year was 162K.

Hence I was worried I would end up paying Tax this year instead of recieving any back. But fortunately, these two components helped immensely:
-- Building Allowances
-- Plant & Equipment

Depreciation is a Blessing.

Every evening we would prepare the tax filing spreadsheet.
After some 28-30 odd manhours we finalised the spreadsheet and finally punched in the figures into E-tax. Pleasant surprise!

Anyways, this is our second year we are doing the Tax thingy ourselves. Has been a great bonding experience! Thankfully wifey is an accountant :D

Used to rely solely on our accountant before - but with every added property the charges would increase. The consulting fees soon came to the 2000s. That is when we decided we would give it a go on our own. It has given us a great new perspective into our Investing, Risk management & Property selection criteria.


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Gentle_Chief said:
Well in all honesty, we were thinking that we would need to PAY back to the ATO this year.

All our IPs are CF +ve at our current Interest rate of 6.51%

Also the Low Interest rates due to GFC for a good part of 2009 contributed to cash surpluses.

Interest Outgo was 140K wheras rent Inflow for the year was 162K.

Hence I was worried I would end up paying Tax this year instead of recieving any back. But fortunately, these two components helped immensely:
-- Building Allowances
-- Plant & Equipment

Depreciation is a Blessing.

Every evening we would prepare the tax filing spreadsheet.
After some 28-30 odd manhours we finalised the spreadsheet and finally punched in the figures into E-tax. Pleasant surprise!

Anyways, this is our second year we are doing the Tax thingy ourselves. Has been a great bonding experience! Thankfully wifey is an accountant :D

Used to rely solely on our accountant before - but with every added property the charges would increase. The consulting fees soon came to the 2000s. That is when we decided we would give it a go on our own. It has given us a great new perspective into our Investing, Risk management & Property selection criteria.


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Good on you. With the $2k savings on accounting expenses it came to about $70 per hour productivity. It's all good mental exercise and resource for a recreation.
 
Got my tax return !

Well the ltter form the ATO syaing it's been depsosited but banks says not yet.

You beauty - hopefully it's clear in the acount by Tuesday and no more PPOR mtge or credit card and a couple a $ in the offset for saving for the what feels like the first time ever :)
 
jaycee said:
Got my tax return !

Well the ltter form the ATO syaing it's been depsosited but banks says not yet.

You beauty - hopefully it's clear in the acount by Tuesday and no more PPOR mtge or credit card and a couple a $ in the offset for saving for the what feels like the first time ever :)
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Good on you Jaycee.
No more PPoR debt - thats brilliant.....!
The ATO refund which you are diverting to the PPoR debt is 'the last straw on the camel's back' hey? :D

Mind sharing how long has it taken you be debt free on your PPoR.
 
Gentle_Chief said:
Good on you Jaycee.
No more PPoR debt - thats brilliant.....!
The ATO refund which you are diverting to the PPoR debt is 'the last straw on the camel's back' hey? :D

Mind sharing how long has it taken you be debt free on your PPoR.
Click to expand...

Mate my situation is not the norm, this I fell into this situation by accident, not by design

End of 1999 my dad passed away and left my brother and I his small t/house and car. I bought out my brother's 1/2 - total cost: $45k the unit was worth about $65-$70k.

The t/house had good growth, like most of Perth

I then purchased an IP in 04.

Upgraded the car in 2007 and started to capitalise interst on the IP and funelling the rent into my PPOR mtge.

Bought another IP in 09 so that made it 2 lots of rent.

LVR around 64%

Shoud feel a little more comfortable and relaxe than I do... A bit of work on the PPOR to finish it off to be done and a few $$$ to be put away and that shouuld do it :)
 
jaycee said:
One week after I got the ATO letter confiriming it's been sent and it's still not in my account :(
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Jaycee, we got our ATO refund on the 8th Business day into our bank account. Mine came first (on a Tuesday) and my missus's next (Wednesday) although we filed our together (about 1 hour apart).

And we did not get a letter from the ATO confirming that the money has been sent. It just turned up.

Maybe you should give them a call and check if they have the right account in their records.
 
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