Don't forget to claim your Tax benefits !

[straitman]

JohnK,

You can claim however many trips you make where the main purpose is to look at the property, even if you do private things while you are there. Its a matter of fact whether you can argue the trip is income-producing related or not. There is nothing to say you can't do 10 trips a year if there are reasons for that and it's warranted. Although I am an accountant, I am not yours, so always talk to your accountant for specifc advice.

edman,

Interesting as this is different to what I've always been told. I could use some extra trips to visit my house in Cairns. I do hope you are correct and I am more than happy to admit I am in error if that is the case.

JohnK,

Apologies if I misled you previously.

 

[trippin_the_rift]

JohnK - why not change from "employee" to "contractor". This way all expenses related to your flying for work/profit are justified as a deduction. Furthermore, you could use it as a way to take cash out of the company through employee travel allowances (which are tax free personally).

 

[medhead]

edman,

Interesting as this is different to what I've always been told. I could use some extra trips to visit my house in Cairns. I do hope you are correct and I am more than happy to admit I am in error if that is the case.

JohnK,

Apologies if I misled you previously.

I thought a useful rule of thumb was 1 trip per year for an inspection is reasonable. (Certainly, I wouldn't want to visit my property more than once because the tenants demand things everytime I go there)

However, if you need to visit the property multiple times that would all be deductible.

 

[JohnK]

Apologies if I misled you previously.

No apologies necessary. It always to good hear other peoples points of view.

JohnK - why not change from "employee" to "contractor".

Great suggestion but as far as I understand the company is not interested in hiring contractors in IT especially from interstate. They want long term commitment which is something, in their eyes, a contract does not provide. I do not want to ruffle any feathers.

Also watch out if you are a contractor and you spend all your time working for the one company only throughout the year. Technically you are not able to claim any work related expenses as this is your primary place of employment.

 

[serfty]

... Also watch out if you are a contractor and you spend all your time working for the one company only throughout the year. Technically you are not able to claim any work related expenses as this is your primary place of employment.

It's referred to as PSI (Personal Services Income).

There's several defined tests to determine if your contracted employment falls under PSI; more here:

• Alienation of personal services income: contractors and consultants obtaining work through agencies - leaflet

More the the point, with PSI, work expenses are restricted in what can be claimed. However, most work related travel expenses are not among these restricted expenses and are generally claimable.

(Disclaimer: I am not a lawyer, nor am I an accountant. This post should be taken as a guide only and any person seeking to operate as a (sub)contractor should seek professional guidance.)