With Financial Year End Coming up, Do You Have Any Tax or Tax Return Questions I Can Answer for You?

AssociatedLnicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 10:35
Last edited 31/05/2017 - 09:17 by 1 other user

Edit final time:

Started a new thread for this to keep up with everyone's new questions. This is the link…

https://www.ozbargain.com.au/node/309978

Edit again:

Thanks for all the questions once again everyone. We have now reached over 600 comments.

I will do another Q & A in about a month when it is closer to tax time.

Hope you have all got a bit of extra general tax knowledge. ]]

If your inquiry is urgent then you can PM me.

Goodbye for now and see you in about a month!

Hi All,

I just thought with financial year end coming up in just over a month's time, many people have tax and specifically tax return related questions.

I am a tax professional and I am constantly getting asked similar questions coming up to tax time by family, friends and new clients. So I thought that I could be of some use and answer any tax questions you may have.

Disclaimer: Any advice or answers given will be general in nature and you may need to speak to a tax adviser for more personalised advice.

Ok, start posting your questions :)

Edit: Thanks for all the questions. I am trying to get to everyone as soon as I can. If I miss your question please send me a PM or ask again so that I can see it. There are so many questions I am sure i've missed a few.

Financial

Related Stores

Titanium Accountants & Advisors
Titanium Accountants & Advisors

closed Comments

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 13:27

      5,000 total. Even if you have 10 cars you can only claim up to 5,000.

      Your log book is just to show how you came up with your number. It is ok if you have not been logging the km reading of the car.

      • montorola on 23/05/2017 - 14:24

        Would this be a no questions asked 5000km?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 14:29

          For the 5,000 they will ask you to show them how you came up with your calculation.

          Which can be as easy as telling them it was 60km from X to Y and back once a week x 45 weeks.

        • montorola on 23/05/2017 - 14:32

          @nicolemcmilllon:

          Ahh fair enough, to be honest I haven't been keeping a record of my km travelled.

          But I've had to go out on site a few times a year, then I was also doing postgraduate study (directly related to my field) so did trips to uni on the weekend for study as well as travelling into the city to do overtime work.

          Am I able to:
          - claim km travelled to go to uni and back
          - claim km to come into work for overtime (overtime was paid, but not travel expenses)
          - claim km to go out on site

          What would be a reasonable amount?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 14:35

          @montorola:

          I can't tell you what a reasonable amount would be. It is a self assessment system.

          You are able to claim travel between work and uni and visa versa but not travel to and from home.

          Do a rough calculation and use whatever you come up with.

          hint, something like 3000km should be fine

        • montorola on 23/05/2017 - 14:47

          @nicolemcmilllon:

          Thanks Nicole, much appreciated :)

    • JetLi on 23/05/2017 - 14:43

      There's info out there that you can claim 5,000 per car, so in your example where you changed cars during the year, you could claim for both cars.

  • parismeow on 23/05/2017 - 13:18

    Hi Nicole, Thank you for doing this.

    If i traveled to Melbourne from Sydney out of my own cost to work in the office there, am i able to claim flights and accommodation as an expense?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 13:28

      Why would your work not pay for you to travel interstate. Employer's will not expect their employee to pay for flights and accommodation. It is not realistic.

  • partymix on 23/05/2017 - 13:38

    Hi OP - sorry if this has already been asked, there's 5 pages of comments and I haven't had a chance to read through them all.

    How much of a disadvantage is it to not have a tax depreciation schedule for an investment property?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 13:46

      If your property was built relatively recently (less than 15 years) or if there was substantial construction costs recently then you should def be looking at getting a depreciation report. They cost approximately $750 and you will get the benefit of 10x that in the coming years.

      • movieman on 23/05/2017 - 17:32

        Thanks Op.

        So if $30k was spent on renovating an old house 5 years ago, would it be worth it?

        How will depreciating affect once sold. No negative gearing.

      • techboy on 24/05/2017 - 08:15

        Plus the $750 can be claimed back in Tax next year.

  • chengjianer on 23/05/2017 - 14:48

    Thank you for doing this post!

    I know little to nothing about tax, so there are lots things i don't understand, but i will just ask 3, that i can think of and really want to know / understand.

    1. Where can i learn more about tax? Except reading this post.:) (Which is free, simple, related to personal, not in depth)

    2. Why people can claim tax back? I am guessing there are 2 types: 1 is you overpay tax 2 is you claim tax back on items?
      So, if i am correct:
      —- how or why people will overpay tax? Aren't there a "Weekly Tax Table" and "Annual Tax Table" which you just need to follow in ATO website? Oh, there's one more question that come up in my mind, which one should i look at or use? For example, i am working in retails, part time, hours are generally same each week but it may be more or less from time to time.
      —- And with claiming tax on items, how does it work? Let me just say i earn $30,000, but i spend $10,000 on items that related to my job (or does it have to be?), then i just need to pay or my taxable income is $20,000 not $30,000, am i correct?

    3. It's about my personal tax. How much can i claim back? If i earn $30,000 in this financial year, what can i claim for tax?

  • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 14:59

    No problem, appreciate all the positive responses.

    Basically the way it works is your employer will withhold an amount based on the weekly/fortnightly/monthly tax tables.

    That withholding is just to ensure that you are paying tax to what they estimate your wages will be. It is not correct to the nearest dollar. Look at it as a prepayment of tax. Then at the end of the year when you figure out what your actual income is, you pay the tax on the actual income. They deduct what you have "prepaid" and the difference is either an amount to be paid or get some back.

    If you make $30,000 then your employer has withheld tax for someone with taxable income of $30,000. Therefore if you have $1,000 worth of deductions, then your income is $29,000. You will effectively get back the withholding on that $1,000. Not sure if that makes sense or not.

    You can only claim expenses directly in relation to your work. Most people wont have many deductions as your employer will pay for everything for you.

    You earned $30,000 this financial year, what job do you do? Did you incur any expenses in your job that your employer did not reimburse you for?

    • chengjianer on 23/05/2017 - 15:12

      That withholding is just to ensure that you are paying tax to what they estimate your wages will be. It is not correct to the nearest dollar. Look at it as a prepayment of tax. Then at the end of the year when you figure out what your actual income is, you pay the tax on the actual income. They deduct what you have "prepaid" and the difference is either an amount to be paid or get some back.

      Prepayment, that makes sense, but why/how would be a difference??

      You will effectively get back the withholding on that $1,000

      Not the whole $1,000, right? It's just the withholding tax of the $1,000?

      what job do you do? Did you incur any expenses in your job that your employer did not reimburse you for?

      I work in retails, just one of the team members. I honestly can't think of any, but do you know if there's anything i can claim?

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 15:15

        There is always a difference because they cant work out your actual tax for the full financial year each time they pay you.

        What happens if you just work half a year? how would they know to withhold the right amount. What happens if you have 8 different jobs. Thats the whole point. they are just taking an estimate to make sure you are paying a reasonable amount during the year. It also helps with the ATO receiving money regularly rather than waiting to year end - helps with cash flow.

        Correct not the whole $1,000.

        If you can't think of any deductions it is because you dont have any. Most retail workers wouldnt have any.

        • chengjianer on 23/05/2017 - 15:26
          +1

          Ok, i think i understand now. thank you!!!

  • congo on 23/05/2017 - 15:11
    +1

    Best Q&A ever!!
    Thank you very much Nicole!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 15:12

      No problem. It has been mostly positive feedback.

      A few inappropriate private messages but thats to be expected. Reported them.

      • chumlee on 23/05/2017 - 16:44
        +1

        Name and shame!! And cut and paste the comments as curious

  • StrayJ on 23/05/2017 - 15:34

    Great thread OP! I'm a contractor and I was looking around for an accountant, what are some things/criterion I should look for when I choose an accountant? I have a lot of backlog BAS Statements I haven't looked at…

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 15:37

      First thing would be an accountant that doesn't let you fall behind on BAS statements as the ATO can fine you around $550 for each BAS you haven't lodged.

      I tried to PM you to discuss further but for some reason I couldn't PM you?

      • StrayJ on 23/05/2017 - 17:15

        Sorry, my settings were defaulted to not allow PMs, it should be good to go now! I'm behind BAS statements since January.

  • blacket on 23/05/2017 - 15:41

    Hi Nicole,

    Very generous of you to answer everyone’s tax queries!

    I was hoping I could also please pick your brain.

    I am a graphic designer, I work for an office (about 100k + super) and I also freelance as a sole trader (income is increasing but varies between 10-15k). I carry out my freelance work from home (rental property).

    Graphic designers are notoriously horrible with numbers/money/tax/etc. and for this reason I wanted to ask the following:

    1. CAR - I need to buy a new personal car that I will also use for business. Am I better off purchasing this through the business and if so, lease or purchase outright? (I already own a car but coming to the end of its life)

    2. MEALS - Is it possible for sole traders to claim any meals on their tax?

    3. TRAVEL - If I fly to New Zealand for two conferences, a 2 days conference, a 2 day break, and another two day conference. What would I be entitled to claim on tax?

    4. GENERAL - Any general tax advice for a sole trader graphic designer working from a rental property?

    THANK YOU!

  • kanister1987 on 23/05/2017 - 15:42

    Thanks for this OP!

    My question is:
    In the 2010-2014 tax years I did a lot of share trading, and as such i was able to classify myself as an investor/trader and include gains/loss in my ordinary assessable income as 'Other Income'.

    In 2015 I only traded 1 share, in 2016 i traded no shares.

    In this financial year i would like to sell some remaining shares I own at a loss and hopefully claim that 'investor' status again to include the losses as Other income again. Ideally I don't want to carry the losses over until i make new statutory gains to offset.

    Can i do this? I'm not really trading enough to argue i'm an investor except perhaps could i argue these shares are the remnants of my portfolio from my time as an Investor in prior years?!

    Is there another way i can get my desired outcome?

    Thanks in advance for your help!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 15:44

      By holding on to the shares for a minimum of 3 years, they will most likely be deemed to be held on capital account and you will not be able to use these losses the same way you did in 2014.

      You may want to apply for a private ruling with the ATO if the amount is large and you want to give it a try.

      • kanister1987 on 23/05/2017 - 15:46
        +1

        It's not worth it for the amounts concerned. I should have sold them back in 2014!

        Thanks for responding!

  • Zabuza on 23/05/2017 - 15:44
    +1

    Regarding from the ATO website

    " from your home to an alternative workplace for work purposes, and then to your normal workplace or directly home. This does not apply where the alternative workplace has become a regular workplace "

    My 'regular workplace' on my contract says it is the HQ of my company. But I travel onto client sites for my work. Predominately I have been working on 1 client site for past few months (Which means this has become my regular workplace) but now I have picked up 2 more client sites, 1 day at one, another day at another and last 3 days with my 'regular client workplace'

    What defines regular in this situation and what can I claim?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 15:46

      as you are doing it regularly (1 day a week but every week is considered regular) then you most likely wont be able to claim any travel to and from work. The regular isnt based on 5 days a week, it is based on how often you do it per year.

      however if you are travelling from that place to your other work places, then you will be able to claim that, just not travel to and from home.

      • Zabuza on 23/05/2017 - 15:51

        What is considered non-regular 'per-year'

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 15:53

          It is up to you to decide what is not regular. But for example if a client calls and you need to go and fix something there, its not regular because it is not predetermined each week.

          It is up to you to decide if you are going there "regularly".

  • mick123 on 23/05/2017 - 15:45

    Great post and very informative.
    My question I am not sure if you could answer or if its more to do with centrelink??

    Say one was to salary sacrifice part of their salary into super.

    In regards to Family Tax Benefits, child care rebates, child care bonuses etc. Does centrelink look at taxable income only, or are super contributions (such as sacrifice) also part of the income "test" to determine if you receive any of these benefits?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 15:48

      Salary sacrifice arrangements will be added back to form your adjusted taxable income.

      This is to stop people from trying to reduce their taxable income.

  • sudheer on 23/05/2017 - 16:03

    Hi,

    I would like to talk to you regarding my business. can you please on your contact details.Not getting any response using the contact number provided on the website.

    cheers
    sudheer

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 16:05

      Hi Sudheer, we are currently experiencing a large number of queries so its difficult to get to them all.

      What kind of assistance did you require? Is there anything specific?

  • sudheer on 23/05/2017 - 16:06

    yes, it is specific to my Family trust.

  • suntap on 23/05/2017 - 16:17

    Hi Nicole, My stepdaughter works in an accountants office, about 3 years now. She has only a grade 10 Qld education and no further training. I suppose the accountant has been training her in house, but she has been doing clients tax returns and BAS returns the entire time. I have a small business and use a book keeper and so know about the registration of BAS agents. The accountant employing my step daughter only has a personal BAS registration, not one for the practice. I am worried my step daughter will get in trouble or find herself exposed, having done BAS returns without registration. Is it ok for the bosses ersonal registration to cover her?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 16:20

      Your stepdaughter is most likely just preparing the BAS and the BAS agent is lodging it under their license. Since she is not registered, she is not lodging anything under her name.

      It is no different to Price Waterhouse employing 5,000 accountants to prepare the BAS.

      • suntap on 23/05/2017 - 18:14
        +1

        thank you. so reassuring.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:24

          No problem. Shes lucky to have a stepfather who cares enough to ask.

  • Shwayne on 23/05/2017 - 16:37

    What's something I wouldn't expect I could claim but probably applies to everyone?

  • Pizdets on 23/05/2017 - 16:41

    My company is based in Brisbane and I have to go to Canberra for work 12 months. My wife owns the property I am currently 'renting' in Canberra and I fly back home every Friday.
    Are my rent and flights 100% tax deductable?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:10

      Do you own your own company?

      • Pizdets on 24/05/2017 - 08:32

        Company is owned by two people split 50/50

  • wau2 on 23/05/2017 - 16:44

    Thanks op. Your work is really appreciated.
    I have 2 questions
    1)I'm planning to rent out a property I just moved out of (was my PPOR). If I get a valuation report on it, does it become my cost base? How long can I rent it out before I pay CGT on it?

    2) The house is pretty vacant, is it worth getting a depreciation schedule for it? There is basically nothing in the house (I.e if you tip it over, nothing will fall)

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 17:03

      CGT is paid when it is sold. If you want to keep it as your main residence then you can do so for the next 6 years assuming you don't have any other main residence. Which begs the question where r u moving to.

      It is good to get a valuation so that you can use it in the future depending on when you sell it. If you sell it or move back in within 6 years then there is effectively no tax assuming no other main residence.

      Also if u have a partner then there are other issues to discuss if they own a property too.

  • MEYS on 23/05/2017 - 16:48

    Hi Nicole, i am earning good amount of money from my youtube channel. Will i get tax from it? How much tax should i be paying?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 17:00
      +1

      What kind of videos are you paying. Most likely you should be paying tax on that at your marginal tax rates. About 35% for anything up to 100k

      • MEYS on 23/05/2017 - 17:05

        Unboxing and review videos. If its over 100k? Thanks for the quick reply 😊

        • Thazza on 23/05/2017 - 20:35
          +1

          Don't forget to claim deductions against your income.

          That can help you minimise the amount of tax you would have to pay.

        • MEYS on 23/05/2017 - 21:58

          @Thazza: thanks 😊

  • Dr Prepper on 23/05/2017 - 17:09

    whats the go for salary sacrificing super.

    If the zombie apocalypse happens will I be able to withdrawal my super?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:11
      +1

      Long story short you won't be able to withdraw your super.

  • inyaface on 23/05/2017 - 17:10

    I travel interstate to get jobs, about 2-3months each time with different employers. Is any of the rent expenses and car rental in new places deductible? I maintain my own home and pay mortgage and costs in the meantime.

    It is specialized work and I cant stay in one place and get long term employment, so I have to follow the work around the country.

    Sometimes I get accomodation and travel expenses paid by the company, and some companies do not provide this and I have to pay everything out of my own pocket.

    Many thanks!!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:13

      Accommodation wont be deductible.

      Travel will be dealt with the same way it would be if you were in your normal occupation. Travel from your accommodation to work would not be deductible.

      Sorry to be the bearer of bad news.

      Your employer really should be paying everything for you.

  • goms on 23/05/2017 - 17:20

    If I borrow money from the bank under 2 names for investment purposes but use the money to buy stocks under one name only, can i claim the interests as deduction? If so, how does it work?

  • csrong on 23/05/2017 - 17:32

    If i purchased multiple shares about 10 years ago, and am looking to sell it now, how do i calculate the capital gain? some are reinvested and some are paying dividends, i want to calculate approximately the capital gain and how much would i need to pay if i sold them? :<

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:14

      Thats what accountants are for. It would be like asking the mechanic to tell you how to install a car engine.

      Effectively it is the proceeds less the cost, less 50% discount for gains held longer than 12 months.

      You really should not be doing these calculations without the assistance of an accountant.

    • Thazza on 23/05/2017 - 20:46

      You would actually need to go back and record the dividends that were reinvested and at what cost for how many.

      It's not a hard task - just pretty time consuming.

      Your taxable capital gain would be:

      If held for longer than 12 months
      (Market Value (or selling price) less Cost) * 50%

      IF held less than 12 months
      (Market Value (or selling price) less Cost)

  • So Was Red on 23/05/2017 - 17:33

    Hey is it complicated to do your own tax return after receiving pay through UberEATS (not a taxi service). I've got ABN registered for GST with voluntary annual payment but don't know much beyond that. I also learned I could have just payed GST with my tax return but that info was not readily available when I spent hours researching >:/ Other payments include bank account interest and Centrelink Youth Allowance.

    Also what's the go with claiming GST component of fuel, and phone bill used for the job? Have most of the fuel receipts but many have faded. Is there an (un)official amount one can claim without being checked up on?

  • tsunamisurfer on 23/05/2017 - 17:36

    Hi OP,

    At what age can my children start receiving income like interest payments from bank accounts / term deposits.

    Will they get the full tax free threshold?

    Help appreciated.

    • 4agte on 23/05/2017 - 18:02

      This is known as unexpected income and is tax differently from expected income (wages etc). Unexpected income is not included in an individuals tax free threshold amount and tax differently to to reduce tax avoidance. Eg. Toddler earns $18k in interest so parents don't have to pay their tax rate on it

      https://www.ato.gov.au/individuals/investing/in-detail/child…

  • lisamacoz on 23/05/2017 - 17:44

    Hi, thanks for the post and all the great info. I was wondering if there is any way to deduct medical/dental anymore? Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:15

      Nope they phased out the net medical expenses offset. Look on the bright side, im sure you have great teeth :)

      • lisamacoz on 24/05/2017 - 09:57

        Unfortunately, just the opposite hence the question. :( Thanks for a really informative Q&A and for answering so many questions.

  • 4agte on 23/05/2017 - 17:48

    Hi op

    I run a small car detailing supplies business for extra income. The majority of my stock comes from overseas suppliers. My questions are:

    1. What type of evidence do I require for my stock purchases? Is the invoice enough with the support of my bank records. My suppliers do not have ABNs but are legitimate USA and UK business

    2. Can I split the shipping costs of stock however I like as long as it is accounted for? Eg. If I purchase several products it becomes confusing how to split the shipping as items have different cubic weight

    Thanks in advance op

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:16
      +1
      1. Yes
      2. Split the shipping costs by any way you deem to be the most fair and reasonable way.
      • 4agte on 23/05/2017 - 21:19

        I really appreciate your time to answer my questions. Kudos to you

  • mrjames on 23/05/2017 - 18:00

    I occasionally have to use my car to transport heavy goods around work (within a large educational campus), am I able to use this reason to deduct car costs to and from my home to work?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:18

      Use the cents per km method as it will ensure you aren't claiming the costs of operating a car. That would bee too much.

      Find out the amount of km you drive solely for transporting these heavy goods and times it by 66cents for every km. That is your deduction. (up to a maximum of 5,000 km)

  • OzzyOzbourne on 23/05/2017 - 18:05

    Why don't some big corporations and millionaires pay tax?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:19

      Way too long of a response needed. In short, they have tax lawyers who know where to funnel money to pay the least amount of tax.

      Also look at blaming countries like australia where the tax rate is so high companies dont want to pay tax here.

    • chumlee on 23/05/2017 - 18:35

      Because they make large donations to political parties and get what they want. We Ozbargainers are the ones that get bent over the tax office commissioners desk and rammed

  • CharityCase on 23/05/2017 - 18:11

    Hi, I'm currently working on a 65k job, 3-4 days per week, I've been considering getting a second part time job, but I still don't understand how the second job being taxed, say if I got offered a second job at $20/hour, how much will be taxed? thx in advance

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:20
      +2

      When people say you are taxed more at your second job that is incorrect. Your employer will withhold more but you still get taxed the same at the end of the year.

      IF you have 1 job paying 70k a year
      If you have 70 jobs paying 1k a year

      It gets taxed the same at the end of the year. The only thing that changes is that you can tell your second employer to withhold a bit more.

      • Donaldhump on 23/05/2017 - 21:48

        annoys me to all hell when people say they get taxes more at the 2nd job.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 21:49

          its been a myth that I have heard for the last 20 years. its OK its one of those things that people say and its just been accepted as truth.

          Thats why I am here :)

  • Davros on 23/05/2017 - 18:32

    Hi and this may be an interesting one.

    We are and have been for a year living on a boat cruising around the east coast.
    Income comes from a pension paid by super enacted by forced redundancy and some rentals that are pretty much break even.
    Our house is almost paid off (loan kept open for redraw if ever needed) but has sat vacant for a year and now that we know the boating life is for us, we are ready to put tenants in.
    The house needs a major reno. It was sad when we bought it, but we lived with it until we had the CASH to pay for reno's but a boat purchase claimed the cash.

    My questions are.
    1) Reno's from redraw should be tax deductable now the house will become a rental?
    2) We will need to park the boat and live on it in a marina for a few months while work is done on the house.
    Can the cost of marina fees ($1500/mth) be added into the claimable costs and will they be an instant claimable deduction?

    Thanks in advance.

    • chumlee on 23/05/2017 - 18:39

      Reno is a capital improvement so no immediate deductions.

      What boat you get??

      • Davros on 23/05/2017 - 19:27

        A white one

  • spiff on 23/05/2017 - 18:53

    Can a photographer claim all camera equipment as an immediate business deduction if the items are all individually under $20k?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 18:54
      +1

      IF you are running your own small business yes.

      Not if you are an employee.

  • Liebals on 23/05/2017 - 19:07

    Thanks for all the time you're putting in to answer all these questions.

    My husband is a pesty and needs to store a large amount of work gear at our house (garage) can we claim that and what would we claim it under?
    Also he charges a backpack most days can we claim electricity?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 19:16
      +1

      Most likely no to the first one.

      Electricity for charging a backpack will be $10 a year. Not really worth it lol

  • dp1 on 23/05/2017 - 19:16

    What an amazing thread!
    I'm one of those people you will roll your eyes at, been doing my own tax returns via etax/mytax since 2010.I had an accountant who set up my ABN and did my first tax return. I was a bit disillusioned with being charged $500 to fill in the etax proforma and give him the printout which was copied and lodged complete with errors.
    I'm now at the stage where things will get more complicated and need accountant input. Taxable income will be in the $170-180k range next FY. Partner currently not in employment but has a small income from shares (less than 1k a year). We plan to move out of our current property and buy a bigger PPOR in the next few months,and rent out the current house. As if this weren't enough in the next decade or so I will inherit a one-third share in a commercial property overseas which should produce around 25-30k income annually.
    I have no idea where to even start off with an accountant, what would you advise? I currently have all my financials on a DIY spreadsheet going back to 2011.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 20:12

      Send me a PM it wont let me send you one for some reason.

      • dp1 on 23/05/2017 - 21:13

        PM sent

  • Samsungnote10 on 23/05/2017 - 19:18

    Hypothetical

    If you are payg full time.
    And you also run b a side business's. And this business makes a loss. Does the loss come off your payg income?
    Eg salary 50k. Business makes a loss of 10 k

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 19:33

      There are various tests in which you would be able to.

      But I am assuming because you are asking me this that your business is new. Short answer is no you can not.

  • cnmarine on 23/05/2017 - 19:18

    Can i claim all the overtime meal allowances, it's shown separately on the payslip but not on the end of year statement.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 19:34

      You can claim the meal allowance expended usually people claim the same amount as the allowance.

  • froodh on 23/05/2017 - 19:45

    I work a salaried position while my wife is a domestic engineer. We have a rental property, and her share of the rental income (less expenses) is well less than the tax free threshold.

    Does she need to submit a tax return? She has in the previous years under similar situation.

    Do I simply put her share of rental income in the partner's income sections of my tax return?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/05/2017 - 20:05

      She should still lodge a tax return.

      And you put her taxable income in the section of your return which asks about your spouse.

      • froodh on 24/05/2017 - 07:45

        Thanks OP

  • [Deactivated] on 23/05/2017 - 20:10

    Hi, I earn quite a lot (high tax bracket), but I don't want to pay tax like these people:

    http://www.smh.com.au/federal-politics/political-news/meet-t…

    Can you tell how?

    • [Deactivated] on 23/05/2017 - 21:11

      I don't want to pay tax like these people

      Have you actually read the article? It tells you exactly how they reduced their taxable income.

      • [Deactivated] on 23/05/2017 - 22:03
        -1

        I'm asking the OP. This post is about tax question. Maybe OP got different answer, I want to hear.

        • [Deactivated] on 23/05/2017 - 23:13

          I'm asking the OP

          My 3 year old kid talks like that.

          Maybe OP got different answer, I want to hear.

          The simple answer is, there isn't much you can do to reduce your taxable income if you're income is from regular PAYG employment.

          Say you make 250k + super. You can put another ~8k in super as a salary sacrifice contribution. You can salary package a car, which might reduce your taxable income 15k-20k/year (depending on the car). You might be able to wrangle together 5k in work related expenses. Maybe another 5k in charitable donations. A negatively geared investment property might get you another 10k deduction (maybe 20k with depreciation). You're still left with a taxable income ~200k … and paying a good chunk of income tax.

          On the other hand, the people in the newspaper article are probably 'high net-worth individuals'. There's plenty of tax loopholes available for them - family trusts, etc.

          Politicians are very careful to always lump together 'high-income-earners' and 'high networth individuals' into the same category as 'rich'. They always go on about how they'll tax the 'rich', but in reality, the only ever go after the 'high income earners'. The high networth individuals are never touched, because they're the ones funding the political parties.

Login or Join to leave a comment
Login Join