Nomoney - Latest Comments

Re: Should you repay your HELP-HECS loan or not?

Scott — Wed, 17 Aug 2011 03:40:25 -0000

Thanks Dash

Agree that it is correct to tell the ATO you have a HELP debt when you complete your TFN declaration form (when you get a new job).

I more meant for people who had an existing job (say through high school) who had already completed the TFN declaration form. But I agree that the correct thing to do is to advise your employer (who might start taking extra tax out).

Yes - I was aware the voluntary repayment has dropped to 5% - just hadn't had time to write about it!!
Cheers
Scott

Re: Should you repay your HELP-HECS loan or not?

dash — Mon, 08 Aug 2011 01:18:14 -0000

Just got off the phone with the ATO, they said telling your employer that you don't have a HELP debt means you could be penalized/fined. Especially if you are holding off mandatory repayments to make a bulk voluntary repayment later. Thoughts?

Thanks for the article BTW.

And FYI the 10% bonus drops to 5% after 1 January 2012. :(

Re: What can I claim for tax? Office Workers

Scott — Tue, 12 Jul 2011 11:31:39 -0000

Hi Johnny
I try not to give specific advice - but one-on-one I'd ask about what sort of job you do & whether the CA subscription has a link to the work you do.
Scott

Re: Buying a new car – for the cheapest price

Scott — Tue, 12 Jul 2011 10:59:15 -0000

Hi Noel
sorry for the delay - I manually approve comments so I don't get any spam on the site (you wouldn't believe the amount of spam sites like this get).
Scott

Re: What can I claim for tax? Office Workers

Pip — Tue, 12 Jul 2011 05:52:43 -0000

I am doing a Cert IV Business Administration course that the Government has subsidized thru work.
As this is a correspondence online course, i do 99% of it from home (on my own time as i am too busy thru work hours) and have had to buy new Microsoft Office Software to be able to do a majority of it.
What can i claim? Can i also claim internet usage

Re: Buying a new car – for the cheapest price

Noel — Tue, 12 Jul 2011 05:21:44 -0000

Don't delete my comments. Is this site impartial or not?

Re: Buying a new car – for the cheapest price

Noel — Tue, 12 Jul 2011 05:19:46 -0000

Don't you believe it!
I was able to achieve a lower price than quoted by NewCarsPlus by approaching 2 retail dealerships in person. Guess where I bought my car?
My advice: "Shop Around"

Re: Buying a new car – for the cheapest price

Noel — Mon, 11 Jul 2011 06:02:07 -0000

Don't you believe it!
Despite their marketing hype I was offered prices lower than what NewCarsPlus was able to obtain by approaching retail dealerships in person.
Two dealerships offered me a lower price! Guess where I bought my car?
My advice "shop around"!

Re: What can I claim for tax? Office Workers

Johnny Smith — Fri, 01 Jul 2011 01:40:05 -0000

Hi,

For the deduction of membership fees, can I deduct the membership fees I pay for my Chartered Accountancy that is based in the UK?

Thanks,
Johnny

Re: Video – 2011 tax & super co-contribution refunds explained

Tom — Thu, 30 Jun 2011 23:46:23 -0000

I thought the video was good, what program did you use for the screencast?

Re: Should you repay your HELP-HECS loan or not?

Scott — Thu, 12 May 2011 12:35:07 -0000

Hi Kristian

Appreciate your comment. Congratulations on being HECS-HELP free!

Looks like you have used the "last year payment" strategy I mention in the article to get the benefit for your last 2 years paying HECS-HELP.

Paying approx 17k to cancel a $19k debt (saving 1.8k) is a good investment. Instant 10% return on investment. (I disagree with saying the amount saved 1.8k vs amount you'd have to pay next year 10k means its a 20% return on investment - you paid as 1 lump sum: 8,100 instead of 9,000 this year (10% ROI) and 9,000 instead of 10,000 next year (10% ROI)).

Definitely agree with your comment re: trade off between different investments.
I thought I'd unpack that a bit more...

1.You would almost definitely be ahead of keeping it the bank at 6% (although not AMAZINGLY better off, say $750 on your numbers as a complete guess)

But I'm just playing devils advocate -
2. if you just paid the compulsory $9,000 when you lodged your tax return this year (maybe your employer withheld this?) and kept the $17,000 (or $8,000) and bought a unit worth $170k (maybe your parents lend you some deposit money or you got 5% loan 3 years ago when they still offered them) that rose to $210k after 5 years - you'd be better off with the house.

Or (probably more commonly)
3. go to Europe next year and spend 12k on your credit card -and it takes you 5 months to pay it back - you might have been better NOT paying the HELP.

But of course paying off your HECS (or any loan) is a fantastic feeling.

Scott

Re: The date book – good dates for cheap

Tom — Mon, 09 May 2011 02:14:28 -0000

I love these books, but lately I've been all about these Groupon-style web coupon providers, of which there seems to be more every day. For things like dinners they are perfect, huge range of options and usually advertised savings of over 50% or more, though I don't know if you really end up saving that much because you often have to eat from a set menu.

I feel like a bit of a tightarse though when I take my girlfriend out and pay with a coupon. Even though I've still paid for it, it just feels a little less chivalrous. Will still much rather do it than pay full price though.

Re: Should you repay your HELP-HECS loan or not?

Kristian — Fri, 06 May 2011 03:02:23 -0000

I just paid my HECS debt off today.

My outstanding debt was approx $19k but the payout amount was approx 17k.
I calculated that this financial year my compulsoray repayments are about 9k, so my "real outstanding balance" is about $10k which would likely be paid off next financial year anyway through compulsorary repayments.

In my case If I paid off my loan I would save approx 10% on the whole amount (1.8k) which when you compare to the amount I would be forced to pay in the next year provides an approx 20% pa after tax return on investment. I also avoid indexation which I have not accounted for in this calculation.

Whether it is woth paying off or not really is a trade off between alternative investment options and the effective return on investment from paying off the debt through voluntary repayments. A good thing to remember though is that the bonus from paying off the debt is a "risk free" return and also an "after tax return".

Re: Should you repay your HELP-HECS loan or not?

Scott — Tue, 26 Apr 2011 12:04:31 -0000

Hi Tom

Thanks -yeah the 20% upfront discount generally comes when you have no money (I don't think anybody ever said uni full time and working was easy!).

And the 10% discount (only when you pay $500 or more) means that if you actually had $500 - there are probably better things you could be using the money for (saving for a house, or to start investing).

Scott

Re: What can I claim for tax? Office Workers

Scott — Tue, 26 Apr 2011 11:58:53 -0000

It is rare you can claim costs to and from work if you work a job. So with your train fare - if is just home to work and back you can't claim it (even if you check your emails on your phone on the way).

Tradies with heavy equipment can claim travel costs, but office workers - generally no.

Of course - if you travel from work to a client (and work doesn't reimburse you) then Yes for that leg (travelling home from the client wouldn't be deductible). If you travelled from work, client, back to work then Yes - all of the trip is deductible.

See Car and Travel expenses on the ATOs website for a bit more info.
http://www.ato.gov.au/individu...
Scott

Re: What can I claim for tax? Office Workers

E Byrne — Fri, 22 Apr 2011 05:47:58 -0000

Hi, I use a smartrider card to travel on TRANSPERTH services (taxi and train) to and from work. and everytime i reload it is with EFTPOS and it says on my statements. Can i claim this?? Also, occasionally I would take Taxis to and from work, can i claim that too? Thank You

Re: What can I claim for tax? Office Workers

Scott — Tue, 19 Apr 2011 03:10:44 -0000

Hi Daniel
Claim your train ticket?
Generally no. Train trip from home to work and back are generally not deductible (deemed to be private by the ATO).

Also just because you do small work at home (say check your emails)- doesn't mean you can always claim - I've updated the article a little bit more about this.
Scott

Re: What can I claim for tax? Office Workers

Daniel Handley — Mon, 18 Apr 2011 04:51:47 -0000

If i do work on a train to and from work, can i claim it on tax?

Re: Should you repay your HELP-HECS loan or not?

Tom — Sun, 06 Mar 2011 23:20:05 -0000

Interesting post, I've often thought about the benefits of paying HECS off up front as opposed to just leaving it for later. That said whenever I've been studying I've been so broke that the exercise was purely academic anyway...

Re: Money strands – Free and easy way to track your spending

Steve — Mon, 25 Oct 2010 03:20:09 -0000

Hi Scotty,
As a general rule you should never give out your password for one site to another site. This goes doubly for your internet banking password. That is like your pin number.

This service sounds pretty cool but remember that you don't have on-line insurance for savings account like you do with credit cards.

The risk you're taking to get their service is far too great imho.

Re: Car rego and How I told my car insurance company to get stuffed

Dave — Sat, 31 Jul 2010 00:39:42 -0000

I also discovered recently that you can pay rego by 6 month or quarterly installments,

--
Trindaz on Fedang/money

Re: Its about spending wisely -not about being a tightarse

Michael — Tue, 25 May 2010 02:07:37 -0000

Hi Guys,

These tips are good. In one year of stopping drinking I managed to save for a house deposit and bought a small unit which cost 260K and now worth 340K. You don't always have to have big nights out to have fun.

Why not stay at home and trade shares and play online games?

jUST A tHOUGHT!

Re: Winner of Notebook &Invoicing for musicians

Steve — Fri, 12 Mar 2010 02:49:25 -0000

Hey dude,
Couldn't you just say you're doing it as a hobby on the invoice so that you don't need an ABN?

Re: Tips to reduce time spent on Emails

Steve — Wed, 03 Mar 2010 23:44:30 -0000

Hey mate,
Just a comment on the email versus phone call comment. Emails are stored in writing so if there is confusion later down the line you can always refer to the email.

Re: Why you shouldn’t pay off your home mortgage.

Alistair — Tue, 02 Mar 2010 22:06:26 -0000

Mate, All sounds well and good although in theory if you are making repayments on a principle and intrest loan of 450k at approx $650 a week how would you make the money you would save from doing intrest only work if intrest only repayments were $550.
In essence how do I use that $100 to benifit me more so?

I cannot see how it works when if you pay P&I not only are you in effect saving money but you are reducing the amount of intrest you pay over time, and in saying that, for your theory to work you would need to keep the dwelling (realistically) for approx 10yrs to cover stampduty, legal, cap gains etc , can you show me some more details to support your theory?