Maximize your tax deduction – Individuals

As 30 June is fast approaching, this is the best time to review your situation to see if you are able to maximize your income tax deduction to get back more tax refund (or reduce your tax liability) when lodging your 2018 tax return!

This article will focus on what individuals can do to legally maximize their tax deduction to minimize income tax liability. We will look into some work-related expenses, donations, tax agent fees, personal super contributions and income protection insurance in this article.

There will be a separate article for business owners so keep an eye on our website!

Note that we are only providing general advice on what items you may be able to claim as your tax deduction, the actual tax deductibility for certain items depend on your personal circumstances. If you would like assistance for your situation please contact us.

Read More

Superannuation Guarantee Amnesty

On 24 May 2018, the government announced the start of a Superannuation Guarantee Amnesty. The Amnesty will be available retrospectively from 24 May 2018 to 23 May 2019, subject to legislation passing.

The Amnesty gives employers a one-off opportunity to self-correct past super guarantee (SG) non-compliance without penalty. Catch-up payments made in the 12 month period will be tax-deductible.

To be eligible for the Amnesty and avoid harsher penalties the government requires employees to:

  • disclose their SG shortfall amount including nominal interest to us within the 12 month Amnesty period, and
  • not be subject to an audit of their SG for the relevant periods.

This won’t be final until the legislation is passed through Parliament however you can read more information about the government’s plan here.

Once the legislation is passed, we will be talking with clients that we believe may find this amnesty useful, or you are welcome to approach us for assistance.

Is it Goodbye to Rental Property Travel Expenses?

From 1 July 2017, an individual’s travel expenses relating to a residential investment property are not deductible, so you will not need to calculate kilometres and expenses when sending in your 2018 tax information.

Those who have commercial or industrial rental properties, or running a business of property investing will still be eligible to claim travel expenses as will companies that own residential property.

Increase your Superannuation before 30 June 2018

From 1 July 2017, all eligible Australians under the age of 75, including employees, are able to claim a personal tax deduction for extra superannuation contributions deposited to their superannuation fund before 30 June 2018 – providing you don’t exceed the superannuation cap of $25,000 and satisfy the work test if you are aged between  65 to 75.

So if your employer has contributed less than $25,000 into superannuation for you, or you are self-employed and have made no contributions so far this year, now is the time to consider topping up your superannuation fund.

Superannuation contributions that you claim as a personal tax deduction pay 15% tax which is collected and paid by your superannuation fund.   This can be lower than your personal rate of tax.

Your Superannuation fund will be able to give you details of how to make the extra contribution but remember it MUST be received by the super fund by 30 June 2018 so it’s a good idea to do it a few days early just to make sure it gets there on time. Also you will need to complete some paperwork and submit it to your Superannuation fund in order for them to be tax deductible.

GST & Properties – new changes for the purchaser

If you are thinking of buying a newly established residential property, or a subdivided property, you may need to remit GST on the purchase directly to the ATO. The following article provides a quick guide to this new legislation, and what to do if you are affected.

Read More
Page 1 of 1012345...10...Last »