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Invoicing employer

Discussion in 'Business & Startup Investing' started by Liverpool St, 10th Oct, 2012.

  1. Liverpool St

    Liverpool St Well-Known Member

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    Hi,

    I am retired and have losses in my discretionary trust. I have been offered a full time job and am wondering if I can invoice my employer instead of receiving a direct salary. I would imagine this would be cheaper for the employer and obviously beneficial to me to utilise losses.


    Thanks
     
  2. jrc77

    jrc77 Well-Known Member

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    I think you will run into issues with PSI (personal services income) rules.

    Regards,

    Jason
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I don't think PSI will necessarily stop you from doing this - contractors do it all the time. The point of PSI is to sweep up all those people trying to avoid paying tax via PAYG ... so PSI will force you to pay tax on the income as if you were a regular employee.

    I'm not sure what impact that has on the mechanics of working via a business vs personal and whether it makes it too difficult to do.
     
  4. Liverpool St

    Liverpool St Well-Known Member

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    Thanks for your reply
     
  5. Terryw

    Terryw Well-Known Member

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    Some considerations:
    - are the losses income or capital?
    - have the trust made a family trust election to carry these forward?

    If you are an employee then no way to get the income into the trust directly. If you can contract to the company then maybe. But you are to overcome a variety of tests designed to prevent this.

    A good way forward may be to set up a new trust for investing and have this trust distribute to the old trust. Make sure you get proper advice though.
     
  6. jodie123

    jodie123 Active Member

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    Terryw great advice. Yes the new rules for contractors are designed for exactly what this liverpool st is trying to do. Sound advice indeed.
     
  7. jodie123

    jodie123 Active Member

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    Liverpool St, how did you get on? Interested to know what decisions you made.
     
  8. Liverpool St

    Liverpool St Well-Known Member

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    New Job

    Hi Jodie123,

    Sorry for delay. I haven't started the job as yet. Basically I took a redundancy with Defence and my wife and I went travelling overseas. I would have been happy to remain overseas in Asia but I was out ranked by management (AKA my wife) so we came back to Oz. During this time my clearance lapsed (Positive Vet). 2 months ago I was approached and offered a job with a consultancy firm in Sydney, unfortunately I am now undergoing a lengthy security assessment.

    I wasn't looking for work but I was a Navra "investor" so off I go to work. When I commence employment I will salary sacrifice into Superannuation and set up a drawdown what each month (I am over 60).

    LS.
     
  9. Liverpool St

    Liverpool St Well-Known Member

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    Sydney
    Thanks Terryw,

    Much appreciated

    LS