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Using income tax to pay my mortgage faster

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I too have been approached by a financial company claiming that the ATO has a scheme where you can use a % of your income tax to pay out your mortgage faster. Sounds suspicious to me!!! Why wouldn’t this kind of information be public knowledge if such a great scheme existed? Can anyone please shed some light on this? We are booked to meet with this company for a full day, transport provided .....

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ATO Certified Response

Community Manager

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Hi @Frankie and @Jacq 

 

I agree that sometimes offers like this do seem too good to be true and can sound suspicious! We want the community to be cautious and to protect themselves and their personal information, when approached with these sorts of promises.

 

There are a huge number of tax planning ventures, schemes, and unfortunately sometimes even scams out there. Some of these are legitimate planning, some are considered tax avoidance and some are unfortunately not and are designed to avoid tax or at worst scam the community.

 

The role of the Tax Office is not to provide tailored financial advice or any sort of financial planning with regards to your tax arrangement. Our primary role is to administer the law and provide advice to help you understand and meet your tax and super obligations.

 

What we can do is tell you if a particular arrangement is legal or not under the tax law.

 

You haven’t provided enough information for us to understand how using a % of your income can help you pay off your mortgage. This proposal has not come from the Tax Office and is not something we are aware of. Without more detail we do not understand what this could be and we cannot provide any advice on how this would relate to the Tax laws.

 

When approached with any sort offer like this, you need to do your research to find out if it is legitimate or not. This may involve seeking the support of an expert such as a financial planner or registered tax agent who can provide personalised advice and tailor your financial planning to suit you.

 

Please remember to not get caught out! See here for more information on schemes and scams.

3 REPLIES 3
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Hi @Frankie,

 

Welcome to our Community!

 

We've had a previous query similar to yours on our Community about using tax to pay off your mortgage.

 

As we can provide general information about tax and super topics, you may wish to seek advice from a registered tax professional for more detailed information for your situation.

 

Thanks, JodieH

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Hi Jodie,

 

Just wondering why there isn't a concrete response from the ATO on the claim that the finance companies are making.  I'm not sure what the point of the community is if we can't get more solid answers from you guys.  

Highlighted

Most helpful response

ATO Certified Response

Community Manager

Replies 0

Hi @Frankie and @Jacq 

 

I agree that sometimes offers like this do seem too good to be true and can sound suspicious! We want the community to be cautious and to protect themselves and their personal information, when approached with these sorts of promises.

 

There are a huge number of tax planning ventures, schemes, and unfortunately sometimes even scams out there. Some of these are legitimate planning, some are considered tax avoidance and some are unfortunately not and are designed to avoid tax or at worst scam the community.

 

The role of the Tax Office is not to provide tailored financial advice or any sort of financial planning with regards to your tax arrangement. Our primary role is to administer the law and provide advice to help you understand and meet your tax and super obligations.

 

What we can do is tell you if a particular arrangement is legal or not under the tax law.

 

You haven’t provided enough information for us to understand how using a % of your income can help you pay off your mortgage. This proposal has not come from the Tax Office and is not something we are aware of. Without more detail we do not understand what this could be and we cannot provide any advice on how this would relate to the Tax laws.

 

When approached with any sort offer like this, you need to do your research to find out if it is legitimate or not. This may involve seeking the support of an expert such as a financial planner or registered tax agent who can provide personalised advice and tailor your financial planning to suit you.

 

Please remember to not get caught out! See here for more information on schemes and scams.