How Do I Pay Less Tax?

Dear Scott

I work 80 hours a fortnight and am the main provider for my family. Four months ago I got a new job that pays $86,000 a year. Earning over $80,000 means I am now in the higher tax bracket, so I pay more tax. I worked out that if I reduce my work to 70 hours and keep my income to just under $80,000, I would take home the same amount of money as do I now. Is it worth reducing my overall income to avoid paying too much tax?

Dave

Hi Dave,

Dude! You’re the main provider of your family, why are you playing defence?Besides, if lowering your tax is your endgame, I can show you how to slash it to zero: just buy a bunch of negatively geared properties. In quick time you’ll be so negatively geared you’ll be positively screwed.

Jimmy Barnes wrote a song about the slog of a salary, it’s called the Working Class Man. There’s honor in working hard, delivering value, and providing for your family. To answer your question, yes you can game the system by cutting back on your hours. But what’s the long-term cost? Where will that thinking take you and your family in 20 years time?

Scott