Synchronising new business and Frequent Flyer

[drcam]

This year, at the ripe old age of 46, I have started my own business.
I am about to sign a deal with a Melbourne-based company to work at a clinic in Hobart, Tasmania (in person) three days a week. There is some chance that I will spend a few weeks in other locations around Australia, but generally this will likely be Tuesdays to Thursdays.
I am based in Victoria and my base of operations is in Melbourne where I conduct other clinics and also do non-clinical consulting work.
All my work is as a contractor and therefore there is no formal employer-employee relationship. The Tasmanian gig is projected to make up about 50% of my total business income.
I am considering, in lieu of moving to Tasmania for three days a week and finding a place to rent/buy, to simply go FIFO on a weekly basis.

I have a few questions:
(1) Am I eligible to join QF or VA Business Flyer? Does this mean I can double dip on my points as a sole trader? Am I eligible to use QF/VA Business Flyer only for trips that are legitimately work-related business?
(2) Is my weekly trip to Hobart for business deductible for airfare, acommodation and meals? Or not deductible because it is a "regular place of work" as I am likely to be going there on a weekly basis for the majority of weeks in a year (although I may be deployed elsewhere sometimes)?
(3) Would any Accor Hotels or airline (QF/VA/JQ) offer me a discount for multiple return trips bought in advance?
(4) For tax paid to the ATO, is there any legitimate positive-EV way to earn points?
(5) Assuming I have ~ 50 interstate return trips a year mostly of short distance, how many Status Credits would I potentially earn, and points? Is it even worth it? Would I save money on Jetstar?

Any opinions would be most appreciated.

Cam

 

[MEL_Traveller]

Can answer most of your questions but I was commuting weekly for two years between Sydney and Melbourne, and chose fully refundable fares. This allowed me to buy tickets weeks or months in advance and then cancel if there was a public holiday or my plans changed or I was taking sick leave.

Something to consider when you are looking at fares is how flexible you need to be and the flexibility if something goes wrong, like you miss a flight.

 

[Mwenenzi]

Do you have (tax ) accountant?
Do have a (business) lawyer?
Will you operate under your on name or via a your own company? [= lawyer ~ accountant}
Your questions should have been asked and answered before you considered and agreed to the Tassie work,

1. yes
2. Ask your tax accountant. My guess is yes (if do not rent~own a Tas property). ATO publish a rate at which hotel & meals can be claimed.

• https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/tax-time/tax-time-toolkits/tax-time-toolkit-small-business/small-business-guides/travel-expenses
• https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/payments-you-need-to-withhold-from/payments-to-employees/allowances-and-reimbursements/travel-allowances
• https://www.ato.gov.au/law/view/document?docid=TXD/TD20254/NAT/ATO/00001

Will you have ~ need a car in Tassie for business?
3,. Unlikely. Your travel is not that unusual. But ask the hotel directly.
4. Ask your tax accountant.
5. Just a number crunch in a spreadsheet. Look at schedules prices & ff earning (in that order).
Will you need air ticket flexibility? Is OK to no show at times and buy a walks up fare. Just a minor business expense.

A weekly trip to the same location will~can become tedious.
I worked as a contractor (via my own company) for over 30 years (engineering so not medical)

DrRon worked in Tassie for some time. Suggest you ask him.

 

[oz_mark]

1) Qantas Business Flyer required ABN and GST registration. I think Virgin is just ABN
2) Accountant question
3) Hotel Question
4)Others may know
5) Gold should be achieveable, platinum maybe

 

[andye]

1) if you have an ABN, you can join the Business Flyers. You are supposed to only use the portal for work-related flights
2) if fixed schedule, probably is a usual place of work by strict ATO definition but travel between worksites on same day would be deductible. Accountant may be able to advise further
3) Don't know, but at least potential to buy during sales (or DSC promos) if a fixed schedule
4) Payment processor fees may be considered a deduction (in discussion with your accountant) especially as can help with cash flow. Will usually bring ATO payments under 1c/pt depending on card
5) You can build up a meaningful amount of points and status on this schedule. Whether it's worth paying extra for is a personal decision also taking into account types of ticket and status perks (e.g fly forward and baggage needs).

 

[Seat0B]

You do need to get some tax advice @drcam as the ATO has some fairly punitive ways of looking at taxes for what they determine to be personal services income, which your work would surely be. You really need to get that sorted in your mind before you make any decisions about working as a sole trader or establishing a company that employs you (and only you).

I think you might be in for a nasty surprise on the regular place of work thing too and its impact on travel claims.

Disclaimer: I am not an accountant, just a former small business operator/contractor with own company. Please get proper professional advice as these things can really bite you in the bum.

 

[SeatBackForward]

I setup QBR and VA Business accounts as a sole trader and other than dealing with paperwork, there were no issues. Only now are my businesses starting to have other regular employees/contractors, but it's all in place when it needs to expand.

The questions about deductability/tax benefits are definitely one to ask your accountant, and if you're operating your business you DEFINITELY need to use an accountant, so I'd place getting that sorted above worrying about FF matters.