Last AMA of The Financial Year - Tax and Tax Return Questions - Ask Away!

Associatednicolemcmilllon @ Titanium Accountants & Advisors on 18/06/2017 - 16:25
Last edited 05/07/2017 - 10:16 by 1 other user

Hi All,

With the end of financial year coming up - most of you will be looking at lodging your returns in July and getting those refunds as soon as possible.

If you have any tax or tax related questions then ask below and I will answer them for you.

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.

P.S Please see my two previous forum post as we try to avoid duplicate questions.

I will reply to this thread with a link to the previous posts. Please go through them to make sure you're not asking the same questions.

Look forward to answering all your tax queries.

Ask Away!

Mod: Removed solicitation.

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Comments

  • TheBean on 20/06/2017 - 15:20

    Hi, a friend's recently deceased grandfather has a small estate being distributed in Singapore. He's wondering if he should bring the money he's being given(~100k) to Australia which he resides for now (currently PR).
    Apparently there's no capital gains or estate tax in Singapore but not sure about Australia and whether to bring this money in. Would he need to declare it and would it be taxed in some way?
    Cheers!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 15:34

      I can't advise on Singapore tax but in Australia the inheritance is most likely not taxable unless you are advised by the executor that a part is taxable.

      However, if you invest the income from the estate then any earnings will be taxable.

      • TheBean on 20/06/2017 - 16:00

        Thanks Nicole!

  • Dink on 20/06/2017 - 15:54

    Hi,

    I attended an HSR course in Melbourne for work and I was not reimbursed for my travel. I live ~50km from Melbourne. On the way to the course, my husband dropped me at a train station and I took the train in. On the way home, he drove the ~20km into Melbourne from his workplace, picked me up and drove me the 50km home so I didn't have to catch the train. What can I claim in terms of travel expenses?

    Many thanks.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 16:02

      Claim your train fare going in. Also claim 20km x 66cents on the way back as your husband was going to drive the 30km home anyway. If you're feeling adventurous claim the entire 50km on the way home. Its such a small amount it won't matter anyway :)

      • Dink on 20/06/2017 - 16:08

        Thanks very much for the quick response!

  • aoujay51 on 20/06/2017 - 16:04

    Can I claim tax refund for my iphone 7 plus 128 GB as my work phone?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 16:12

      You don't claim refunds, you claim deduction which may lead to refunds.

      You can claim a percentage of the phone costs that is work related, then apportion this for the days you had the phone in the financial year. For example if you bought the phone today for $1,000 and you estimate that 20% of the phone will be for work related purposes. Then you would claim a deduction of $5 this year ($1,000 x 20% x 10/365 days) and $195 next year.

      • aoujay51 on 20/06/2017 - 16:34

        Thank you !

  • nayfon on 20/06/2017 - 16:08

    Hi, thanks for doing this.

    I've just been assigned to work from home full time and I have the following questions:

    1. As I'm renting, if I have a room specifically assigned for my home office can I claim part of my rent as a deduction?
    2. What home office deductions am I entitled to?
    3. Can I depreciate the cost of an espresso machine?
    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 16:13
      1. Yes
      2. Apportion electricity, internet, telephone, depreciation of home office equipment purchased.
      3. No
  • powerhead on 20/06/2017 - 17:02

    Hi,
    my tax statement from a managed fund has a tax-deferred amount every year. It has the following note:
    Tax-deferred amounts are usually not assessable for income tax purposes and are therefore not included
    in your tax return. Details of tax-deferred amounts received should be retained for CGT purposes as
    you will need to reduce the cost base or reduced cost base of your units by the tax-deferred amount.
    Tax-deferred amounts received are not assessable when received unless (or until) the total tax-deferred
    amounts received exceed the cost base of your investment, at which point in time the excess amounts are
    treated as capital gains.
    Am I right in understanding that if I sell the units, I have to go through all tax-deferred amounts in all previous statements and say if I had 400 units and deferred amounts on statements are say $10 for FY15 and $20 for FY16, then would the cost base of each unit be reduced by 10/400 + 20/400 or by $10 + $20 for each unit?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 17:04

      That is correct. Tax deferred means you're deferring the tax until you sell it.

      • powerhead on 20/06/2017 - 17:06

        that's right, thing is it's not clear from the statement whether the reduction amount needs to be apportioned per unit (divided by number of units held) OR is the amount per unit :-\

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 21:11
          +1

          The statement is for all the units you hold at the time. It would be obvious if you look at the calculation the final number will be cash distribution which is the cash amount you received. That will usually be the total amount which means the tax deferred and all the other figures were for the total units at the time.

        • powerhead on 21/06/2017 - 09:59

          @nicolemcmilllon:
          Yes, that sounds logical. Thank you for clearing this up for us.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 10:02

          @powerhead:

          You're welcome :)

  • ilsan0 on 20/06/2017 - 17:05
    +1

    I have nothing to ask. Just wanted to say you are doing a good thing!
    Lots of Karma points for you :)

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 17:09
      +1

      Thanks. I need all the good karma I can get. Bless up

  • AssociatedHungnn300981 @ Titanium Accountants & Advisors on 20/06/2017 - 17:18

    Got questions about tax return. I earned around 120k and recently got a new born and wife stay home. Any spending for the kid i can claim? Any benefit from goverment i can claim as well?

    Looking forward to your answer

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 21:09

      No deductions for newborn costs.

      You may want to ask Centrelink if there is any government benefits you may be entitled to. Being on 120k p.a may mean you won't qualify for family tax benefit etc.

  • OzBargainner on 20/06/2017 - 18:06

    Asking for a friend.
    His ABN got cancelled last year in aug but hes still getting paid on ABN. so does he still have to pay tax? ATO cancelled his abn saying his source of earning is through a job which is not termed as contracting or soletrading and instead its a employee-boss based job. does he have to pay tax? if abn is cancelled and one earns still on a cancelled abn is he liable to pay tax still?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 18:21

      Yes of course. Still have to pay tax on earnings. Include the earnings in "personal services income" section on the tax return.

  • ahara on 20/06/2017 - 18:55

    Hi, I'm wondering if I can claim deductions for overseas donations that are approved charities in the respective overseas country, from my Australian ATO tax declaration?

    I don't think it's possible but I donated to a few doggie shelters overseas so I thought I'd ask.

    Thank you :)

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:01

      Most likely not. Only the main overseas charities are approved. You could ask the ATO though if you know the specific names of the charities. Chances are the deduction will be declined.

      • ahara on 20/06/2017 - 20:22

        Would it matter if they have US approved charity registration details, similar to what local charities have?
        Its not a lot of money but as its different ones it does add up.

        Thanks for taking the time to respond :)

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:36

          If its less than $100 just include it, its not enough for them to bother with.

  • poyme4 on 20/06/2017 - 19:03

    I am going on a self funded conference overseas and my partner and child are coming along (because the room has space enough to accommodate them). Do I need to do anything with regards to proportioning the expenses in terms of accommodation or am I able to claim the full amount.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:03
      +1

      It is very unrealistic that your employer will require you to go overseas for a conference and that they will not reimburse you for the costs.

      Personally I would advise against claiming flights, meals and travel.

      I would only claim half the costs of the accommodation (1 night stay or however long the actual conference is) and the cost of the conference itself.

      • poyme4 on 21/06/2017 - 16:45

        Oh to clarify, it's for self-education purposes so no one's reimbursing me for the costs.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 18:27

          Thats what I mean. It is difficult to justify going overseas with your partner and child and saying it is for a conference. Thats why I would advise agasint claiming flights, meals and travel. I would claim the one night accommodation and conference admission costs only.

  • Thenarrator on 20/06/2017 - 19:17

    For a civil engineer. What is the maximum % of car expense can you claim without ATO being suspicious. I know its a grey area and may not a definitive number.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:04
      +2

      Sorry I am unable to answer that.

      • Thenarrator on 20/06/2017 - 20:48

        then let me rephrase it. What is the highest % car expense you have allocated to your civil engineering clients in the past?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:52

          Approximately 75% is the highest.

          I assume you are using the log book method, otherwise business % wouldn't matter. FYI, you can claim depreciation, repairs, fuel, registration, insurance.

          The best method would be to keep a 12 week log book showing your business travel compared to your private travel.

          Also remember that business kms are usually from work to another work site etc. Not home to work or work to home.

  • saitaris on 20/06/2017 - 19:20

    Guessing the answer to this is probably no, but may as well ask…

    Can I claim depreciation on technology purchased for work purposes that has been salary sacrificed in this financial year? Eg, I purchased a laptop for work during the financial year, and salary sacrificed it, can I still claim depreciation on it and if so is it based on the original cost paid or the salary sacrificed cost?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:42

      No you can't. Effectively you have already received the income and used it to purchase the laptop. Therefore effectively the net effect is zero already.

  • SweatyBalls on 20/06/2017 - 20:08

    A friend a I purchased a property under a tenants in common agreement 50/50 split. Is it as simple as declaring half the income and expenses each on our upcoming tax returns. He is directly transferred the income by our tenants (and later sends half to me) and I generally pay for expenses in full (via direct debit) and he transfers me his portion at a later date. Thanks for taking your time by the way :) keep up the good work!

    EDIT: Want to clarify that this is purely an investment property. Neither of us live there.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:41

      Yes you each include 50% of income/expenses in your returns. I would recommend doing your returns together, or at the very least the first person that lodges their return gives the other one their rental schedule from their return to ensure they are the same :)

  • Ocean on 20/06/2017 - 20:35

    Hi, I have a couple of questions regarding overseas investment property thanks.
    If positively geared i need to pay tax locally on net income, then pay tax in australia on net income minus foreign tax credit. Is this correct?
    If negatively geared can i claim against australian income?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:43

      Yes and Yes.

      Be careful when it is negatively geared by ensuring that you have all supporting documentation.

  • Sestrooper on 20/06/2017 - 20:44

    Hi OP. Thanks for your great help!

    I am ashamed to say that I have not yet lodged my 2016 tax return. Is it too late to do this myself? And what fee's could I be looking at?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 20:45

      Don't be ashamed. I will PM you :)

  • [Deactivated] on 20/06/2017 - 21:22

    If I have a parental family home I'm welcome at can I claim rent on tax if I move away from home for work?
    Unsure if this is claimable at all… And if it is, unsure if a family home can count as my main place of residence as I don't own it personally.

    It's public sector employment on a casual/contract basis (usually 6-12mo contracts at a time).

    It's my understanding if I was running a business and owned the first home, I could claim rent… But as I'm not running a business and don't own the home I'm unsure.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 21:36

      As far as I am aware you won't be able to claim anything.

      • [Deactivated] on 20/06/2017 - 21:40

        Thought this might be the case, unable to find any solid answer anywhere though…

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 21:42

          Thats because you can't claim rent as an employee.

  • digitalbargain on 20/06/2017 - 21:39

    three mates started a small online business where they've done a bit of work for cash (transfered to one of their paypal accounts, but the profits were shared 3 ways, no contracts or anything).. all up they made about $8k profit.. what's the best way to manage this from a tax perspective? is it even worth it or can it be considered a hobby?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 20/06/2017 - 21:41

      its up to you to assess whether or not is a hobby.

      https://www.ato.gov.au/business/starting-your-own-business/b…

      that link from theh ato shows you different scenario's to consider whether you are in a business or hobby.

      If it is a business it can be considered a partnership. IF you don't want to do a tax return, just each include your 1/3rd income and expenses in a business schedule in your tax return.

  • chillybags on 20/06/2017 - 23:54

    Hey thanks so much for doing this!

    My employer pays me $8000 per year ontop of my base salary as a living away from home allowance. From reading on the ATO website - for the first 12 months at a work location (I do change work sites every 6-12 months) and because I pay rent for a house away from work (in Sydney which I travel to on weekends) I food and accomodation expenses are deductible from the LAFHA. Is that correct?

    Another question if I am payed a bonus at the end of this year effictively for the entire of 2017, would I declare half that bonus on my 16/17 return and the other half on the 17/18 tax return?

  • Dicci on 21/06/2017 - 00:09

    I'm on about $105k and finding it hard to decipher the private health issue. I'm currently looking for a long-term accountant to set myself up with, but in the meantime, I'd like to ask if you have any thoughts on whether or not I am better off with a minimal level of private health or staying on with Medicare cover only?

    Many thanks in advance!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 08:56

      If you want to avoid a medicare levy surcharge of at least 1% (approx $$1,050) then you should get adequate private health insurance.

      Just to be safe, ask for a rebate of Tier 2 which begins at $105k adjusted taxable income.

  • Mur on 21/06/2017 - 06:30

    Hi OP, thank for your help! I have three questions:

    1. Is a salary sacrificed laptop used primarily for work a reportable fringe benefit or not?
    2. Can I decrease my adjusted taxable income for Family Tax Benefit Part B by salary sacrificing a laptop?
    3. Can I buy a laptop before 30.06 and salary sacrifice it after 30.06 for the next financial year?

    Thanks!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 09:07
      +1
      1. Exempt fringe benefit due to the otherwise deductible rule.
      2. Yes I believe will decrease your adjusted taxable income
      3. Depends how your employer payroll processes it.
  • BinnyC on 21/06/2017 - 06:42

    Hi OP, can you please tell the eligibility criteria for receiving super co contribution for this financial year? If i do make one, do i have to mention it somewhere lodging my tax return?

  • downhillmtbr on 21/06/2017 - 08:13

    Asking for a friend.

    Someone that's never received more than 18k income and has never registered with the ATO.
    Recently started a small online business (sole proprietor), with most customers being overseas.
    ~50k in revenue for the past financial year with no accounting other than every transaction being recorded digitally (and classified) on a bank statement.
    Has spent ~6 months outside of the country travelling.
    They'd prefer to avoid any complications from the ATO for not filing in the past (out of laziness)

    What's the best way for them to go from here?

    Also, for a sole proprietor, how are personal and business expenses divided. i.e If the individual buys a computer, is that considered personal or a business expense?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 08:58

      You need to apply for a tax file number (TFN) and australian business number (ABN).

      You can do your first tax return in the 2017 financial year. I assume you are a resident for tax purposes regardless of your 6 months away traveling.

      I would suggest you speak in detail with an accountant. PM me if you want to discuss if we can assist you :)

  • fomal on 21/06/2017 - 09:54

    Hi Nicole,

    If I buy a laptop today for $2000 (21/6/17) and use it for 20% of my work

    Would the deduction for 2017 be like : $2000 * 10/365 * 20%?

    What can I claim for 2018 tax with that laptop purchase?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 10:00

      Yep, the best way to look at it is your total deductions should amount to $400 (20% x $2,000).

      Your deduction for this year would be $400 x 10/365, and next year it would be $400 x 355/365

  • unwashed00 on 21/06/2017 - 09:57

    Hi Nicole.

    My wife has started studying in a new field unrelated to her current work.

    Would she only be able to claim it back once she starts working in the new field? The new field is also self-employed if that matters.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 10:01

      It won't be deductible as it is not related to current job. It will be too late once she starts her new field as she would have already incurred the costs of studying.

  • pyuu on 21/06/2017 - 10:47

    Hi, if I purchased a new property in FY17 off the plan intended to be an investment, is the loan interest that I have paid during the construction period tax deductible?
    After the construction I decided to move into it for 6 months in order to claim to first home owner grant.

    How should i deal with the loan interest paid?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 10:52

      As you are moving in it to claim the first home owner grant, your intention is clearly shown, you won't be able to argue that you intended it to be an investment. As you have not rented out the property you can't deduct the interest paid.

      You can add the interest to the cost base of the property should it be subject to capital gains in the future.

  • oneland on 21/06/2017 - 10:49

    Hi Nicole,
    Thank you so much for doing this.

    I own a business that paid for employees phones as part of the business use due to the communication nature of our business: 24/7 contact. We reimbursed the employees for the Note 7 purchases, but we don't have all the invoices, we just reimbursed them the flat value of the phone at that point in time.

    6 months down the track to now, due to the Note 7 Fiasco, I ended up getting a refund of about 40 phones ~ 60k back into my own personal account.
    I'm worried that it will ring alarm bells, but as I only have about 30 invoices, am I required to explain the situation?

    In addition, a few years ago I lent my sister 50k for her home and she should be paying it back at the end of this year or the next. Are there any declarations I have to do?

    Kind Regards

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 10:55

      Out of curiosity, you clearly run a successful business by handing out $60k worth of phones to employees. I am curious as to why you don't have an accountant you can ask this question to. Genuinely curious ?

      It will be fine, the refund will be shown as income for tax purposes as the purchases would have been deductible as reimbursements to employees.

      Did you lend your sister money from a company? If so, what date did you lend her the money and what date do you expect her to pay it back?

      • oneland on 21/06/2017 - 11:54

        Hey Nicole,
        Thanks for the speedy reply.
        The majority of the business is just profit as we have little overheads, and we have done the tax on our end, and accounting by reading up on it. The other partner of the company majored in accounting in commerce, so he was able to do all the accounting. What we did not know, we simply read up on the ATO website or through other sources.

        Essentially, all our employees are subcontractors, so their tax return is completed by them rather than by us. Correct me if I am wrong.

        And perfect.
        I did not lend her the money from the company, but rather my own personal earnings from my second company. This was when I did not fully read up on the ramifications. As far as I am aware, I was supposed to sign a statutory declaration which I did not do. I lent her the money circa 2013, and expect it to be paid back on December 2017 - March 2018.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 11:56

          If the money came from your personal funds then you're fine. As long as it wasn't an actual company lending her the money, because then it would be subject to interest etc.

  • Tech5 on 21/06/2017 - 11:19

    In terms of the $20,000 tax write-off, does that mean all items purchased for the business (Sole trader) can be depreciated to the full amount this year? I saw somewhere earlier you said, we can only claim back a certain amount, depending on how long we have had the item for this year?

    Or does this apportioning rule only apply to employees, and not to small business?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 11:27

      As long as you are a small business you can fully depreciate assets that cost less than $20,000. Also, depending on whether or not they are purchased solely for business use, you may have to apportion any private use.

      • Tech5 on 21/06/2017 - 11:35

        Okay thanks!

  • Pumpkin_rrr on 21/06/2017 - 12:31

    Not exactly a tax question but hope OP can help (Thanx for offering your service. Very nice of you!)
    For SMSF, the Accountants insist on using their software to prepare the Accounts. Wouldnt this be a duplication of work considering we are doing our own bookkeeping? Our SMSF is not huge but I wonder would the same "policy" applies for bigger ones?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 13:02

      An SMSF is difficult to do the bookkeeping on so most likely they just want to do it themselves to make sure it is correct.

      For example many clients do their own bookkeeping for their SMSF, when it comes to year end, we ask for the bank statements and start from scratch.

  • cheapm8 on 21/06/2017 - 12:57

    i just got an email advertising getting income protection and at the bottom it said "Plus, if you pay your premium by 30 June, you could claim a tax deduction in this financial year"

    This got me thinking, if your super fund provides income protection can you claim the cost of this as a tax deduction?

    It also got me thinking, what other not so common tax deductions are out there that have not been discussed that the average joe might not know about? Or in other words, what are some questions that you ask your clients, when trying to get them as many deductions as possible that have not been discussed previously?

    Thanks Nicole!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 13:00
      +1

      No you can't claim deductions for insurance premiums paid by your superfund.

      The most common question I ask them is what expenses do you incur in the course of your employment. Most people don't incur many expenses since employers usually pay for everything.

      Now if they were going to get a little adventurous with their deductions, things like home office expenses (portion of electricity, internet, mobile, laptop) is usually our go to move.

  • keys11 on 21/06/2017 - 13:12

    question- i am a student i have two jobs part time, but i havent claimed one job as being precedented over the other, so im paying normal tax amounts on both jobs, what happens at the end of the financial when i lodge my tax return for both jobs? Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 13:25

      If you are claiming the tax free threshold on both, it most likely means you will have some tax payable at the end of the year.

      If you want a really quick estimate, PM me the year to date gross and tax withheld on each job from your latest payslip and I can do a quick estimate for you.

  • EdisonsMen on 21/06/2017 - 13:36

    Hi Nicole,

    My employer has traditionally been slow with distributing group certificates. Do I need to wait for my employer to issue me a Group Certificate before submitting my tax return or can I query my payslips from the year to determine my income and tax withheld?

    Thanks for all your help!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 13:40

      If done correctly, your final payslip processed for the year should show your YTD (year to date) income and tax withheld. If you really wanted to, you could go based on that. However it all depends on your payroll cycle and if your employer processes everything correctly.

  • animal on 21/06/2017 - 13:43

    Hi Nicole,
    I took out a novated lease this year (started in late March) and was wandering if any car accessories (e.g. shocks, bull bar and so on) can be added to the cost of the car and purchased by the company. I currently deduct a weekly amount from my payslip to pay for the car and would adjust that to include the additional cost.

    Is it allowed after the loan has been taken out, as long as it is within the first year, or does it need to be included in the initial loan?
    Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 13:49

      That is probably a question for your employer and the company that does the novated lease.

      • animal on 21/06/2017 - 13:56

        That's me! Sorry, forgot to mention the important bit of information that I have my own company (PSI).

        Thanks. I will be checking with my accountant but thought I just ask to see if it's even possibility.

  • koalafied on 21/06/2017 - 14:16

    Hi! I started a new job last in December last year and made a slight mistake on my tax deduction form (didn't check the box to claim tax-free threshold), however I recently refilled the form and passed it on to my payroll officer.

    I've worked for 28 weeks (started 12 December, 2016) and have paid over $9500 in tax so far (double rate due to not claiming threshold). Without claiming anything, how much would I approx receive for tax return?

    Also upon starting this job I had to pay $500 for the uniform which got deducted from my pay until it was paid off, would I be able to claim this on tax? Was told it was a bond and that we'd get the amount back if we resigned so I'm not sure if I can claim it or not. Cheers!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 14:32

      I can't calculate what you will get back without knowing your gross income and tax withheld. Even then it would be an estimate due to many other factors such as interest, hecs etc. Ontop of that, you started 12 December, what did you do from 1 July to 11 December?

      If you do not get this amount back then you can claim the deduction :)

  • theAnotherGuy on 21/06/2017 - 15:04

    Hi,
    I've been running an IT Company in Australia but most of my developers are in overseas. Whom I paying their wages through informal Transfer system (Hawala) form my Business account.
    https://en.wikipedia.org/wiki/Hawala

    I get invoice (without GST) monthly.

    Can I deduct those amount (even I didn't send via Bank?).

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 15:08

      I hope instead of wages you mean "contracting" fees. Because with wages you would have to be withholding tax etc.

      As contracting fees from overseas, you can claim this as a business expense if you have the invoice.

  • frostman on 21/06/2017 - 15:18

    How does fully franked dividends work?

    Say a Shares Company pays 100% fully frank dividends, and they paid me $500 that year.

    Do I still pay tax on the $500?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 15:19
      +1

      IF a company pays you a fully franked dividend of $700 you will include the $700 and $300 (franking credit) in your tax return. You will pay tax on $1,000.

      Then you will receive a credit of $300 being the franking credit.

      Effectively you're paying out of your own pocket the difference between your marginal tax rate and 30% company rate.

  • 8millpond on 21/06/2017 - 15:41

    I have investment property. It has a large lawn to maintain which I hire gardner and handyman to do it for me. Most of them I pay cash because the cost will be a lot cheaper. I was not provided any receipt and some of them do not have ABN. Can I claim this as expense against my rent in tax return?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 15:49

      The reason paying cash is cheaper for them is because they are not declaring the income which is illegal. That is why they aren't providing you with a receipt.

      Legally, you're not able to claim that as a deduction because you have no proof of the expense.

  • Vctr on 21/06/2017 - 15:56

    Hi Nicole,

    I've made a small fortune trading Bitcoin and Ethereum (another cryptocurrency) and was wondering what the tax implications were.

    I've read through the ATO article but it's not completely clear to me https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-c…

    If I were to trade a Cryptocurrency for another one, would I have to pay capital gains on it?

    Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 15:59

      Treat the "currency" as if it were an asset.

      The purchase price is the dollars to buy each "asset". Once you sell it and get actual dollars for it that is the sale price of each "asset".

      Do you have your purchases/sales in a spreadsheet? Prob easiest way for your accountant to go through.

  • BB9000 on 21/06/2017 - 17:52

    I was granted 29.40 a day for overtime meal allowance. I work everyday overtime by 3 hours. That works out $147 for 5 days, 7644 for 1 year. Do i have to prove with written evidence for the deduction?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 18:28
      +1

      If you are given a meal allowance is this included in your payment summary? If not, no need to include the income or deduction.

      IF it is in your payment summary then you can claim the same amount as a deduction provided you incurred that as a cost. Either way net result is nil.

      • BB9000 on 21/06/2017 - 23:35

        Does this allowance have to show per pay slip or can it be a one off payment before EOFY.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 02:48

          Usually it would show each payslip. But more accurately it's what is on the payment summary. Sometimes it's on payslip but not on payment summary.

          Either way remember the net effect should be nil so you don't really need to worry about it.

  • desmondnnk on 21/06/2017 - 17:52

    Hi OP

    I own a pty ltd business (established in 2016-2017 FY), and am planning to buy a new car this month privately. I will be using this car 50% of the time for the business.

    Would I be able to claim depreciation as part of the business tax? Also, what else can I claim, e.g. mileage, are there anything else?

    Much appreciated.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 21/06/2017 - 18:30

      No you can't claim anything as part of the company.

      One option is to pay yourself as the employee an allowance which is a deduction to the company and then claim the car in your personal tax return.

      As you have a company, you really should be getting an accountant to do all this for you :)

      Also, buying a car this month won't really make much of a difference than if you buy it next month.

  • WestCoastOZ on 21/06/2017 - 17:54

    Hi there,

    I am planning on leaving Australia permanently to work overseas. What steps do I need to take to ensure that I am considered a non-resident for tax purposes before leaving the country?

    Thanks for your help!

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