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Just what the title says. Both Jobkeeper and Jobseeker are taxable income. Jobseeker is variable according to taxable income whilst Jobkeeper isn't.
Normally Jobkeeper cancels out Jobseeker because the taxable income is higher than the Jobseeker income threshold. However, you can make the taxable income of Jobkeeper less than the threshold allowed by Jobseeker, then receive both payments in full - up to $2600 per fortnight. Here's how:
During Q4 eligible persons will receive $10,500 in Jobkeeper payments. You can earn $104 per fortnight before Jobseeker is affected, or $728 in total. This means you need to write off $9,772 in Q4, in order to be able to report an income of less than $104 each reporting day.
Start with regular income tax write offs: Car depreciation, insurance, maintenance, mobile phone, Internet, home office expenses, etc. For me that adds up to about $3570 per quarter. That leaves $6202. That can be written off with super contributions which are 100% tax deductible.
In my case I can take advantage of the Covid-19 early super fund access, to withdraw $6202, then pay it back to my fund in fortnightly instalments. It will be taxed at 15%, a total of $913, however $500 of that will be refunded by the government as my taxable income for the FY is less than $37,000 so my fund will be down by $413.
At EOFY, my taxable income for Q4 will be $728 plus whatever I receive in Jobseeker allowance. That's it. It might seem dodgy but so does negative gearing.
To claim tax deductions on super contributions you first submit this form:
Normally Jobkeeper cancels out Jobseeker because the taxable income is higher than the Jobseeker income threshold. However, you can make the taxable income of Jobkeeper less than the threshold allowed by Jobseeker, then receive both payments in full - up to $2600 per fortnight. Here's how:
During Q4 eligible persons will receive $10,500 in Jobkeeper payments. You can earn $104 per fortnight before Jobseeker is affected, or $728 in total. This means you need to write off $9,772 in Q4, in order to be able to report an income of less than $104 each reporting day.
Start with regular income tax write offs: Car depreciation, insurance, maintenance, mobile phone, Internet, home office expenses, etc. For me that adds up to about $3570 per quarter. That leaves $6202. That can be written off with super contributions which are 100% tax deductible.
In my case I can take advantage of the Covid-19 early super fund access, to withdraw $6202, then pay it back to my fund in fortnightly instalments. It will be taxed at 15%, a total of $913, however $500 of that will be refunded by the government as my taxable income for the FY is less than $37,000 so my fund will be down by $413.
At EOFY, my taxable income for Q4 will be $728 plus whatever I receive in Jobseeker allowance. That's it. It might seem dodgy but so does negative gearing.
To claim tax deductions on super contributions you first submit this form:
