Can I pay myself a wage of $30,000 from a pty Ltd company I own and buy $30,000 worth of products throughout the year for the business from my personal account and claim it all on my personal tax return? Making my yearly personal income $0.00 after deductions or do the expenses need to be deducted in the company tax return?
or the expenses need to be deducted in the company tax return?
Yes - company expenses cannot be deductible to you.
If you bought stock, and not been reimbursed by company,
the you need to enter
Dr purchases
Cr loan account
In company ledger.
Making my yearly personal income $0.00
That would not be sensible - first 18,200 of your taxable income is tax-free.
Best to get proper advice form your own accountant.
I already have another job, so I’m not able to use the $18,200 tax-free threshold again.
What I’m trying to do is pay myself $30,000 from my company to increase my personal income. At the same time, I would personally pay for $30,000 worth of business expenses without getting reimbursed, and then claim those costs as deductions on my personal tax return.
I’ve spoken to my accountant about this, and they mentioned it could be a bit of a grey area. The concern is that the ATO may question why I’m taking on additional income if it’s being fully offset by deductions, meaning there’s no real taxable income left. They may want to understand the reasoning behind this approach.
I would personally pay for $30,000 worth of business expenses without getting reimbursed, and then claim those costs as deductions on my personal tax return.
Company expenses cannot be deductible to you.
Expenses were incurred by company, not by you - so you cannot claim a deduction.
I would be incurring the expenses personally and claiming them as expenses for work
Best to discuss the meaning of "expenses incurred" with your accountant.
https://www.ato.gov.au/law/view/document?Docid=TXR/TR977/NAT/ATO/00001
If you are trying to inflate your assessable income (not the same as taxable income) in order to impress a third party, then it may be seen as providing false and misleading information.
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