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.

Financial

Related Stores

Titanium Accountants & Advisors
Titanium Accountants & Advisors

Comments

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 13:24

      I am only talking from a tax return point of view, it won't make a diff.

  • imaginaryproduct on 22/06/2017 - 13:29

    Hi Nicole,
    I work in the community in clients homes and travel using my own car.

    I bought a new car. Around 70% of car use is for my work. Can I claim depreciation on my new car and if so, how?

    My job involves working with children so I purchase cheap games and toys to entertain them. It's not essential for the job but makes it much easier. Can I claim the cost of these as deductions? They are only used when I am working.

    Thanks.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 13:33

      How much do the toys cost, If its not too much (less than $300 per year) then claim them.

      Regarding the motor vehicle there are 2 ways to claim. 1. Cents per km or 2. log book method

      Do you have an accountant who prepares your return? They can go through which one is more realistic/better to claim for your circumstances.

      Keep in mind travel from home to work and back is not deductible. Only from client homes to other client homes.

      • imaginaryproduct on 22/06/2017 - 13:36

        Thanks. I do paperwork/admin from home and go straight to clients homes from my home. I was thinking this made my work itinerant as there is no office from which I am based. Does that sound right?

        The toys themselves would be well under $300 but I will have total deductions over $300 for home office and travel kms.

        I usually do my own tax returns but was working in much more straight forward office based roles. Can you do tax returns remotely? How much do you charge?

        Thank you.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 13:41

          If you have no fixed place of work and your work involves going to the places then yes it may be classified as itinerant.

          Please PM me if you would like to discuss us preparing your return.

  • Omega8 on 22/06/2017 - 13:35

    Here's another one for you. I reached my preservation age recently and withdrew all my super in a lump sum and no tax was deducted by the superannuation company. They advised me that the first $195k is tax free and I would have to pay tax on any amount over $195k at a rate of 17.5%. For example if my total lump sum was say $250k then I would need to pay tax on $55k at 17.5% amounting to $9625.
    Or does the tax free threshold come into play here, ie $55k less tax free threshold $18.2k = $36800 which is then taxed at 17.5% leaving me a smaller tax bill of $6440.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 13:42

      Yes you will still get the tax free threshold.

      • Chubbsmcfatflabs on 23/06/2017 - 14:47

        This is good info. I was unaware of that detail..Thank you..

        *Rant incomingplease don't read if you are not interested in rants ! Some statements may be incorrect. Consider that fair warning***

        Gotta love how the govt gets you tax wise anyway it can.

        I had thought that your $$ were tax free when you withdrew them from super given that the earnings were taxed as well..not to mention the 40 plus years worth of income tax ( which would be way more than the pension you'd possibly get for the twilight years of your life..) that you have paid getting to retirement age, then the GST on most things and then they tax you again..and again…

        Oh and then if you happen to pass away when you still have any $$ left in super the beneficiaries are taxed at their respective marginal rate.

        Yup super is great…Can't wait to retire… Oh wait..I can't afford to as I haven't enough super..Better go back to work so I can eat and get taxed again..What I don't qualify for the pension because I have some property ?? Oh wait whats the point again ?
        Rant ends…

        Normal service resumes..

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 15:43

          Might as well give you some more good news.

          You may be entitled to a 15% offset on the taxable portion as tax was paid in the superfund.

          You will see this in the payment summary they give you.

          You're welcome :)

  • KiddieKid on 22/06/2017 - 15:58

    Currently I am working and living away from home for 3 months. Home being Perth and new being Melbourne.

    I am still paying rent in Perth as well as the paying rent here in Melbourne. I do not receive an allowance for the time I am working away from home. Am I able to claim the cost of the flight over to Melbourne (not paid for by work) and the Melbourne rent costs?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 16:05

      No you can not.

  • dantes on 22/06/2017 - 16:13

    Thank you for the AMA. Just quickly went through the three threads but could not find an answer to my question - so apologies if this has been asked.

    Looking to purchase a desktop PC (and monitor) from eBay for my dad's small business with the view to claim the whole amount as an immediate tax deduction (assets under $20K) this financial year.

    My question relates to the tax invoice. As he doesn't have his own eBay account, can I purchase the PC under my own eBay account? Will he then be able to use the tax invoice (which won't have his name on it) to substantiate the claim? From the ATO website, for purchases over $1000, the tax invoice needs to show the buyer's identity.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 16:17

      I think when you purchase something on ebay, you are able to ask them what name to put on the invoice. It's not the end of the world if they can't, but I am pretty sure you can tell them who its going to and what name to put on the invoice.

      • dantes on 22/06/2017 - 16:37

        Thanks, but I've already confirmed with the vendor that the name on the invoice can't be changed. Are there any specific rules saying that the name on the tax invoice has to match the business? If I were to go ahead anyway is there any easy way to document this purchase was for the business?

        Thanks again for any help.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 17:58

          It should be fine. The only reason you are buying it is because your father hasn't got an ebay account. As long as the equipment isn't for you, it will probably be OK :)

  • martriv on 22/06/2017 - 18:55

    Hey quick question . Let's say I do not live in Australia (I used to be an international student ) and I leave back to my home town and receive 60k dividends per annum . How or when do I pay tax on that ?? My place of residence is not aus.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 18:57

      Dividends from Australia? Are they franked? If so, they are not taxable in Australia for a non resident as the franking credits effectively lost are taken as payment of tax.

      • martriv on 22/06/2017 - 19:03

        Let's assume some are some are and some are not and let's assume there are 10k capital gain. Would I owe anything to the ato?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 19:15

          As a non resident of australia for tax purposes you must pay tax on australian sourced income. If the capital gains and dividends are deemed to be australian sourced, which from what you have explained they would be, then you will have to fill out a tax return and pay tax.

        • martriv on 22/06/2017 - 19:36

          Would I still have to pay in my home town of El Salvador ??@nicolemcmilllon:

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 08:08

          @martriv:

          That depends on the tax system there. We only advise on the Australian tax system.

  • MessyG on 22/06/2017 - 19:06

    Quick one - if I go to a conference for work, can I claim the cost of carparking?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/06/2017 - 19:15

      yes

  • Mrgreenz on 22/06/2017 - 22:23

    Hey, first off thanks for the great resource.

    Secondly, do you have to enter every buy and sell of shares into the spreadsheet on the agents tax return system? Incliding listing every ticker and every date and every volume/cost basis.

    Last year my agent did and it took a little while, say 20 mins, I however have many more trades this year and I know many people would be in the hundreds of transactions per year. I was under the impression that I would just give the agent the reconsilled info from my own calcs i.e

    25,000 profit on shares held under 1 year
    20,000 profit on shares held over 1 year

    30,000 loss on shares sold in year

    ((25,000 + (20,000 / 2)) - 30,000) = 5,000 taxable gain

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 01:59

      If you want to give a summary to your agent they will be happy to take that. However they won't be sure that it is right. So you're taking on extra risk by essentially not have someone check it.

      Also your accountant does your return while you sit there in front of them? That's so 1990s. We haven't had face to face meetings for years now. It's so much more efficient through online correspondence!

      • techboy on 24/06/2017 - 16:26

        I'm living in the 90's Nicole…:)

  • idonotknowwhy on 22/06/2017 - 22:44

    When closing a Pty Ltd, are you actually required to sell all the assets like computers, screens, etc?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 01:57

      Yes you will need to go see am accountant who has to find a way to clear the trial balance.

      PM me if you need an accountant to look into this for you.

  • ratman on 22/06/2017 - 23:17

    I'm an employee in the fast fashion industry and my primary role is to submit a high volume of design ideas to our clients on a weekly basis. A significant part of my work is researching styles and product testing for emerging trends in clothing and accessories. So far the best way I've managed this is by buying and wearing a lot of new clothes to test their comfort and wearability and many other customer-centric characteristics. Can I claim all these purchases as deductions?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 01:56
      +2

      I personally don't think you can. But some may argue the other way.

      If it was necessary for your job your employer would be reimbursing you.

  • Blue Cat on 23/06/2017 - 01:16

    "Sign up bonuses" from banks, like ING 100$ and Macquarie Bank 40$, is it considered taxable income and needs to be included in my tax return?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 01:55
      +1

      No you should be fine.

  • doublezero1 on 23/06/2017 - 07:43

    Thank you very much for this great AMA. Its been educational reading the questions and your helpful responses. Any business you get as a result of this is well and truly deserved!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 08:06
      +2

      Thank you. Our boss Steven thought of the idea of giving back to the OzBargin community after all the great contributors post so many great bargains.

      We appreciate the love!

  • investwell8 on 23/06/2017 - 07:56

    Hi Nicole,

    My investment unit is currently going through barhroom repair by done insurance company due to water leakage.
    While most items will be paid for, I need to provide some items and contribute about $5,000 towards half the cost of retiling, vanity, etc.

    Can this cost be claimed as deductions or does it need to be depreciated over a number of years?

    Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 08:08

      Considering it is a repair to bring the bathroom up to its previous condition (as opposed to installing a brand new entire bathroom) then you can argue that you can deduct it as a repair.

      • investwell8 on 23/06/2017 - 08:25

        Thanks Nicole.
        As a result of it, it will become a new bathroom with new tiles, toilet etc but same layout. Can it still pass as repair?
        If it was classed as improvement then how many years can I depreciate over?

        Thanks a lot

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 08:37

          That's fine, you're repairing everything to their same state as before, you're not creating a new bathtub for example where one wasn't there before.

          Problem is, if its not a repair and is indeed capital in nature, then you will have to include the outgoings as part of the cost base. You can write it off at 2.5% per year over 40 years.

          I would give details of all invoices to your accountant when they do your return and hopefully it can be classified as a repair.

        • investwell8 on 23/06/2017 - 08:54

          @nicolemcmilllon:
          Thanks a lot Nicole!

  • jche6075 on 23/06/2017 - 08:39

    Hello,

    If I am the sole director of a company and the company lends me money (rather than paying me directors fees/dividend) and I do not have a loan agreement and I do not pay the company back then it would be a deemed dividend.
    However, if this was flipped around and I lend the company money, is it necessary that the company pays me back?

    Also are ASIC registration fees deductible?

    Thankyou.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 08:42

      Do you mean registration fees of registering the company? These can be written off over 5 years. The annual ASIC filing fee is deductible.

      If the company lends you money, yes you have to have either loan agreement whereby you make a minimum payment or the whole amount can be a deemed dividend (which is unfranked). I would def recommend talking to your accountant about this as there as so many better ways of treating it rather than a deemed dividend!!!

      If you lend the company money it doesn't have to pay you back. It can sit there indefinitely.

      • jche6075 on 23/06/2017 - 09:54

        Yep the registration fees to register the company and also the registration fees to register the business name as well. Are they both deductible over 5 years rather than upfront?

        If I lend the company money I am guessing it is probably wise that the company pays me back as that money can sit in my personal offset account for my home loan instead which I am paying 5% interest on rather than sitting in the company account indefinitely?

        Thanks Nicole.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 10:11

          IF the business name registration was paid before the company was set up then over 5 years. If it was paid after, then it can be deducted immediately.

          There is no benefit in you lending the company money for it just to sit in the company bank account. At least in your personal name it can sit in your offset account. If the company needs money you can always withdraw from the offset account and transfer it to the company.

        • jche6075 on 23/06/2017 - 11:51

          @nicolemcmilllon:

          If I am the sole shareholder and director would the best way to take money out of a company be through directors fees or as dividends to shareholder? Would they have the same tax effect?

          Thanks.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 11:58

          @jenchic321:

          There are different treatments for each. Do you have an accountant?

          You need them to look at the company accounts and determine which is the best way to withdraw funds to you. There are many factors to take into consideration.

  • johndowy on 23/06/2017 - 10:35

    Can I claim my home loan fee ($495) as all of my home loans are for investment properties?

  • cowiie on 23/06/2017 - 11:01

    I have bought an investment house and rented it from the start. It's been many years now. What's the best way to minimise capital gains tax on it? Any thoughts and multiple scenarios welcomed. Thank you 😊

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 11:13

      Did you spend any money on the property that wasn't deductible. Such as renovations?

      Im assuming you have held it for longer than 12 months so you will be entitled to a 50% discount on the gain.

      There's not much you can do, the gain is the gain.

      • cowiie on 23/06/2017 - 20:33

        No renos yet. Just repairs and maintenance which were already claimed for. Thank you.

  • pablomoon on 23/06/2017 - 12:27

    Hi Nicole,
    Thanks for your work here.
    I'm a professional photographer and recently won a photo competition with a 2K prize. Do I need to include the 2K as income?
    Thanks, Paul

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 12:52

      Yes you do as the competition was specifically due to skills in your profession rather than a random competition such as "the price is right" :)

  • bargainhuntaa on 23/06/2017 - 12:40

    Thanks for helping people out. I have a query… Why are my savings in the bank taxed? Interest earned on savings is taxed and also why are gambling winnings not taxed?
    Is it better to gamble than save in this country?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 12:53

      Gambling winnings are not taxed because most people lose im guessing.

      If you are in the business of gambling - such as professional poker players, then their earnings are taxed.

  • a1k on 23/06/2017 - 14:23

    Hi Nicole

    This is sortof a follow up question from AMA Round 2 https://www.ozbargain.com.au/comment/4740230/redir

    My understanding is that buying and selling cryptocurrency will incur CGT. My question is: is there a set way to match up what has been bought/sold (eg. first-in-first-out, last-in-first-out) or can I specify it arbitrarily?

    Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 14:33

      You can specify it any way you wish.

  • ekomyman on 23/06/2017 - 15:15

    Hi, I work from home in IT / Webdesign. Can i claim a solar system under the 20k small business scheme?

    Cheers.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 15:43

      No

      • cowiie on 23/06/2017 - 20:37

        😂 funniest question ever. If you turned your home to an actual commercial property, will this then be possible? Or would it be classed as capital works?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 02:00

          capital works, 40 year write off

  • mraffaele on 23/06/2017 - 15:36

    Hi, this might be silly, but just wondering if any fees charged by my personal Super Fund can be claimed on Tax at all? (Excluding contributions Tax)

    Thanks in advance and for all your time spent so far.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 15:44

      What fees? as in admin fees? the superfund can claim a deduction for them. but not you.

      • mraffaele on 23/06/2017 - 15:46

        Yes exactly. I thought as much, good to have clarification. Thanks.

  • Stoogecake on 23/06/2017 - 15:48

    Hi,

    I currently have 2 jobs, I am a social worker that has salary packaging that covers $15800 of tax money, and a retail assistant at Mychemist.

    This year I earned $22000 from social work and $16000 from my chemist (both after tax).

    How do I use my salary packaging to reduce my tax and how should I calculate my tax (presuming I should use the same method adding both my money earned, calculating my tax bracket and filing the amount I need to pay for my tax)?

    Thanks.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 23/06/2017 - 15:49

      You will get a payment summary from your work, that will show you what to put in your tax return.

  • Username Goes Here on 23/06/2017 - 17:17

    Hi,

    If I were to have a property abroad (UK) and pay local taxes there and none of the funds ever come to Aus, do I still need to declare losses or profits here? I thought there was some double tax rule so you don't pay taxes at both locations.

    Thanks in advance.

  • AlanI on 23/06/2017 - 20:53

    I work as an IT Security engineer and I've just purchased an enterprise-grade firewall for home (cost about $1,300). It's the same brand firewall that I use at work.

    The total cost is made up of the purchase of the physical hardware, plus a three year subscription for software updates.

    The purpose of the purchase is to improve a skill-set I require in my current employment - i.e. learn how to use the firewall better, then use that skill set on the firewall I use at work.

    Would this purchase be classified as a self-education expense, given it's not actually a 'course', but rather a physical asset? Or would this be more of a work-related expense?

    Thanks for your thoughts :)

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 01:57
      +1

      Work related expense. Maybe depreciate it over a few years to be safe.

      • AlanI on 24/06/2017 - 16:04

        Awesome, thanks!

  • mick123 on 23/06/2017 - 21:30

    Hi,great thread.

    My question - not to do with me personally but would love to know.

    Are non bank loans for investment purposes tax-deductible.

    Eg. IP bought at $500k (consider other costs, duties etc paid out of other savings, not included below).
    $100k deposit
    $250k home loan from bank
    $150k loan from family, agreed to pay back at a lower rate than bank offers.

    If interest is paid, is the interest on the $150k loan from family tax-deductible.

    TIA

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 01:57

      yes, and those family members have to include the interest in their tax return as income.

  • Jebus on 23/06/2017 - 23:15

    Thanks for doing this!

    Quick question from me. If I register my small online business now, can I claim business expenses from earlier in the year?

    Cheers!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 01:58

      Not technically, but sort of. As long as there was income during the time you're claiming expenses

      • Jebus on 25/06/2017 - 21:04

        Cheers! In my case there has been income and expenses for this whole financial year (albeit a small one), I've just been too lazy to register the business. I appreciate the response.

  • Momo Fuko on 24/06/2017 - 01:08

    Hi there,
    Firstly,thanks for your kindly explanations. I got a few queries.
    1. Winning money from casion/onling betting is taxable income or not?
    2. I opened a personal super account with my accountant advice and I need to pay 1% of super money montly to my advisor. I am not sure it is wise to keep this type of account and change to a fixed super account.
    3. If I want to transfer money from foreign country to Aussi, how does it work?
    Many thanks!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 01:59
      1. No
      2. 1% monthly is a lot of money. Maybe your accountant is just trying to get money out of u
      3. Who's money is it? nothing wrong with transferring money
      • Momo Fuko on 24/06/2017 - 21:11
        1. my accountant referred me to a finanical advisor and 1% monthly goes to the financial advisor and I understand that the money invested in stock market.( I need to pay $16-18 monthly advisor fee for every $30000 personal super per year)

        3.It is my money .e.g If I want to buy a house here, I might need to transfer my money( e.g 50 000) from oversea.In that case, do I need to pay any percentage of the transfer money to ATO?
        Many thanks.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 21:22

          No. That money that is overseas is yours its fine to bring it here.

          However you should be declaring any income that money earns in your tax return each year. Including previous years. For example if it earns interest overseas you need to include the income in your return in Australia.

  • arnold75 on 24/06/2017 - 09:11

    Hi Nicole,

    Thanks for your kind help,In addition to my part time job I'm selling items on eBay items . Laptops,Phones most of the time I used sometime and sell, sometimes I sell for my friends,sometimes I have profits but not always, Do I need to declare any gains ? Do I need to do as separate business, (I have ABN )
    If so I can I claim any home expanses such as Laptop for work, Internet cost etc,If I claim expenses most probably it will end up with loss. What is the best way to declare this sort of income . Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 12:23
      +1

      If you are running a business then you will have to declare the income. The expenses can offset that income but only to make the income nil. They can't offset against income from your part time job.

      • arnold75 on 24/06/2017 - 13:27

        Thanks, Im not running eBay selling as Business,I have ABN since 2005,That time I had cleaning Business but now its not operating,but stil I have active ABN.Im doing eBay selling as hobby and selling unwanted items But sometimes I upgrade and selling higher prices so I get some profit. In this case do I need to declare income as new business ? ( Total sales less than 10K )

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 13:32
          +1

          No it seems like it is just selling off your own things like most people on ebay. It will most likely be a hobby. No need to declare :)

  • hawked on 24/06/2017 - 09:48

    Hi, I got into buying shares 2 years ago and have made some capital gains on some investments over the LT. I have one investment however for the past 6 months that has made large losses. Would this count as a capital loss or can I offset this against my taxable income?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 12:24
      +1

      To make a capital loss the investment will have to be sold. If you want to claim the capital loss in 2017 you will have to sell it before 30 June 2017.

      VERY IMPORTANT to know that capital losses can only offset capital gains. That means, capital losses can't offset against other taxable income.

      • hawked on 24/06/2017 - 15:33

        Can it be claimed as capital loss even though I've owned it for less than 1 year?

        Does that mean if I sell it now it can reduce my taxable income?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 16:01

          Yes even if you owned it less than a year.

          IT will offset any gains you have made this year. Not offset against your employment income.

  • fortunecookie on 24/06/2017 - 10:36

    Hi Nicole

    My parents currently live overseas but plan to come to Australia to visit.

    They are keen to open a bank account here (interest rate here is better here), but my understanding is that you won't be able to do that unless you are a AU resident.

    If they successfully opened a bank account in Australia, are they be required to pay tax on the interest earned (assuming they have no other source of income)? At what rate would they be taxed?

    Thanks in advance! :)

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 12:26
      +1

      If you are a foreign resident, tax is generally withheld in Australia from interest, unfranked dividends and royalties you earn in Australia. You advise the Australian financial institution – your payer – that you are a foreign resident and they withhold tax in Australia at the time of payment. You won't need to declare this income in an Australian tax return.

      The amount of interest they will withhold is 10%. So they should factor that in when you say "interest rate here is better" it will be 10% less.

      • fortunecookie on 24/06/2017 - 12:28

        Probably not worth doing it then if it's going to be 10% less. But thank you!!

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 16/07/2017 - 10:35

          You're welcome

  • sunnyskyu on 24/06/2017 - 12:16

    Hi Nicole,

    I am on a discretionary trust (GST registered) but this year I am working for one company and all income is considered PSI.
    My contract is as an analyst on remote based and we have multiple offices (but I prefer turn up to the office most of times) so I think I can claim a car for business use.
    I am thinking of buying a car last minute to maximise tax benefit of $20k deduction.

    1. Can I deduct the full amount of $20k car as a PSI?
    2. If I am only going to use, say 50%, for business, can I only claim that 50% portion only?
    3. Do I have to register the car under my business name? or can I register the car under my name?

    Thanks in Advance!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 12:27

      Driving to work is not deductible.

      • sunnyskyu on 24/06/2017 - 13:27

        So unless I earn income on PSB, PSI is regarded same as individual TFN?
        I will probably get a car next year then

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 13:33

          Pretty much if its PSI just imagine its an individual - same deductions available.

  • coolsteps on 24/06/2017 - 14:49

    ref the small business $20,000 write off deal, can it be used items or only new items purchased? ie can i buy a used ute for under 20k and still qualify for the full write off?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 24/06/2017 - 15:00

      Can be used or new. As long as you are running a business i.e NOT an employee :)

    • mick123 on 24/06/2017 - 15:02

      I believe so after speaking to a few people but obviously the OP would know more than me.
      Sorry to piggyback on to this question to Nicole, may I ask you Nicole:

      Would the write off also apply to directly imported work vehicles under A$20k?

Login or Join to leave a comment
Login Join