Aussie FIRE | Financial Independence Retire Early

45. From super to surcharges: tax strategies you should know about

11 snips

Aug 15, 2025

Dive into tax savvy tips like the First Home Super Saver Scheme and how to avoid the Medicare levy surcharge with private health insurance. Learn about novated leases for electric vehicles and how they can save you money. Discover common tax misconceptions and small but impactful deductions, from work-from-home expenses to investment-related costs. The hosts share personal experiences and practical strategies to reduce your tax burden while navigating the complexities of Australian tax law.

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INSIGHT

Aim For A Zero Tax Refund

The correct tax refund to aim for is zero because that means you paid the right tax during the year.
Getting a big refund often just means you gave the government an interest-free loan.

ADVICE

Use FHSSS To Boost A First-Home Deposit

Use the First Home Super Saver Scheme to cycle voluntary concessional super contributions for a first-home deposit and get an effective ~15% boost if your marginal rate doesn't change.
Check yearly $15k and total $50k caps and how marginal tax changes between contribution and withdrawal affect the outcome.

INSIGHT

Deemed Earnings Give Predictability

The FHSSS provides a predictable deemed interest credit that can beat actual investment performance in downturns, because earnings taken use a government predetermined rate.
That predictability can appeal to people who value certainty over potential higher market returns.

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In this episode, Dave and Hayden continue their discussion on tax, covering practical tips and personal experiences. They explore the First Home Super Saver Scheme, private health insurance to avoid the Medicare levy surcharge, and novated leases for electric vehicles. They also chat about common tax misconceptions, and offer insights into long-term tax planning. Packed with examples and advice, this episode helps listeners think strategically about reducing their tax burden without falling into common traps.

(01:03) Recap of the previous episode on big tax strategies; introduction to smaller strategies.

(02:01) Deep dive into the First Home Super Saver Scheme — eligibility, benefits, and pitfalls.

(05:06) Understanding the tax benefits of voluntary super contributions for first home purchases.

(10:16) Nuances of government interest rates and predictable growth in the scheme.

(16:10) Private health insurance: avoiding the Medicare levy surcharge.

(23:02) Why many high-income earners should consider basic private health cover.

(26:45) Novated leases for electric vehicles — how they work and who benefits most.

(30:41) The impact of interest rates and tax savings on novated leases.

(36:36) Smaller deductions: work from home, subscriptions, and everyday expenses.

(40:03) Investment-related deductions, including internet, phone, and software.

(53:27) Common tax mistakes and misconceptions to avoid.

(01:02:04) Episode recap and closing remarks.

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Disclaimer

Any advice is general and does not consider your financial situation needs, or objectives, so consider whether it’s appropriate for you. You should also consider seeking professional advice before making any financial decision.

Pearler is an Authorised Representative #1281540 of Sanlam Private Wealth Pty Ltd AFSL #337927. Read the FSG available from https://pearler.com/financial-services-guide

If you are considering any of the products we spoke about during the show, be sure to read the Product Disclosure Statement & Target Market Determination available from the product issuer’s website before deciding.

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