Home – New Forums Money matters ABN, Super Or Trust Fund

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  • #991285
    conork
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    Hi,

    I have been in Oz for near 2 years now and I am fortunate to be in a position where my employer has advised they will be giving me a 15k bonus spread out over the year with the first payment being made this week.
    My base salary is 100k and is payed as a normal monthly salary, they look after my taxes/super etc.
    They have advised they are willing to pay my bonus but have asked would I want it as normal salary, payed into my super or into a trust.

    Realistically I would like to have access to it as I don’t have any assets, real estate or stocks etc, so would I be better setting up an ABN along with being payed my monthly salary?
    Am I right in saying if I set up an ABN, the first $18,200 is tax free?
    Or would I be better just having it payed on top of my normal salary?

    Many thanks in advance.

    conork

    #1180791
    NickKaro
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    Whether it is paid into a trust or to your business “ABN”, it will still be assessable income for you personally – meaning the tax free threshold will already have been used up for your normal salary (i.e. the bonus will be taxed at your marginal rate).

    If paid into super, you will lose access to it until you meet the respective withdrawal age.

    #1180792
    Anonymous
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    Hi conork, and welcome to the forum,

    I hope the info Nick provided is helpful for you, and that you enjoy being part of our community here.

    Nice to meet you,
    Jayne

    #1180793
    conork
    Member
    • Total posts: 3
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    NickKaro, post: 210861 wrote:
    Whether it is paid into a trust or to your business “ABN”, it will still be assessable income for you personally – meaning the tax free threshold will already have been used up for your normal salary (i.e. the bonus will be taxed at your marginal rate).

    If paid into super, you will lose access to it until you meet the respective withdrawal age.

    Hi Nick,

    Appreciate the advise mate, would you recommend I ask for it as car allowance or an equivalent? I already have a 10k car allowance which makes up the 100k salary.
    Or would I be better just putting it through as base salary? Any form of direction would be appreciated.

    FS Concierge, post: 210872 wrote:
    Hi conork, and welcome to the forum,

    I hope the info Nick provided is helpful for you, and that you enjoy being part of our community here.

    Nice to meet you,
    Jayne

    Hi Jayne,

    Thanks for the warm welcome, the site looks great.

    Conor

    #1180794
    Brad Turville
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    • Total posts: 55
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    Hey Conor,

    Good question, no one likes paying more tax than they have to right?
    As Nick pointed out, if you put it in super its locked away for a while but it is only taxed @ 15%…but again it’s locked away.

    On the other hand, if you receive it personally it’ll be taxed at your marginal tax rates BUT you are getting now, in your pocket, and the question you need to ask next is “how can I put this bonus cash to good work? (i.e. paying down bad debt, investing etc.)”

    #1180795
    conork
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    • Total posts: 3
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    BradTurville, post: 211281 wrote:
    Hey Conor,

    Good question, no one likes paying more tax than they have to right?
    As Nick pointed out, if you put it in super its locked away for a while but it is only taxed @ 15%…but again it’s locked away.

    On the other hand, if you receive it personally it’ll be taxed at your marginal tax rates BUT you are getting now, in your pocket, and the question you need to ask next is “how can I put this bonus cash to good work? (i.e. paying down bad debt, investing etc.)”

    Brad,

    Cheers for the advise mate. Payed a visit to my accountant the other day and that was very similar advise I recieved, putting the $ to good use is the next challenge.

    Thanks again
    Conor

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