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The usual deadline for filing your individual income tax return in Australia is October 31st. However, if you are using a registered tax agent, you might be eligible for an extended deadline, generally up to May 15th of the following year.

In most cases, yes. If you are an Australian resident for tax purposes, you generally need to declare your worldwide income on your Australian tax return. However, certain exemptions and credits might be available based on international tax agreements.

Yes, if you’ve paid more tax than you owe, you can receive a tax refund. This usually happens when your employer withholds more tax than necessary from your wage, you’ve made excess payments throughout the year, or you have large investment losses/negative gearing.

If you miss the October 31st deadline and you’re not using a tax agent, you might face penalties and interest on any tax owing. It’s best to lodge your return as soon as possible to avoid these additional charges.

Yes, you can claim deductions for expenses related to working from home if you meet the eligibility criteria. The ATO introduced a simplified method, which allows you to claim a fixed rate for each hour worked from home.

The Medicare Levy Surcharge is an additional charge imposed on Australian taxpayers who earn above a certain income threshold and do not have adequate private health insurance. Its purpose is to encourage individuals to take out private health cover and relieve some of the pressure on the public healthcare system (Medicare).

Yes, you may be able to claim car expenses if you travel for work-related purposes. This includes using your car to perform tasks directly related to your job, such as visiting clients, attending meetings, or traveling between different work locations. Keep accurate travel records, including travel distances and related expenses, to support your claims. Remember that personal trips, such as commuting from home to your regular workplace, are generally not eligible for tax deductions.

Negative gearing occurs when the expenses of owning an investment property, including loan interest, exceed the rental income received. This creates a loss, which you can offset against other income to reduce your overall taxable income.

You can claim a range of expenses as deductions, including interest on your investment property loan, property management fees, council rates, property insurance, repairs and maintenance costs, and depreciation on eligible assets within the property.

As of my last update in September 2021, travel expenses for inspecting your investment property are generally not deductible. However, some limited exceptions may apply, such as if the property is a commercial property.

CGT is a tax on the profit made from the sale of an asset, including investment properties. If you sell an investment property for more than you paid for it, you may be subject to CGT. However, there are concessions and strategies available to minimize CGT, such as the 50% CGT discount for assets held longer than 12 months and the main residence exemption if the property was your main home for part of the time.

If you use a loan to buy an investment property, you can generally claim a deduction for the interest on that loan. However, you need to ensure that the loan is specifically used for the investment property and that you keep proper records to support your claim.

Yes, you can claim deductions for expenses related to repairs and maintenance of your investment property. However, substantial improvements or renovations that enhance the property’s value may need to be depreciated over time, rather than claimed in full as an immediate deduction.

To get a depreciation schedule, you typically engage a qualified Quantity Surveyor. They will assess your investment property, identify all depreciable assets within it, and determine their respective values. The Quantity Surveyor will then prepare a detailed report, known as a depreciation schedule, which outlines the deductions you can claim for both Division 40 (Plant and Equipment) and Division 43 (Capital Works).

Yes, obtaining a depreciation schedule can often be worth the cost and effort for several reasons, such as maximise deduction, long term tax benefit for a one-off cost and compliant documentation for audit.

Capital gain is the financial profit realised when you sell or dispose of an asset, such as stocks, real estate, or valuable possessions, for an amount higher than the original purchase price. It represents the difference between the selling price (proceeds) and the cost basis (purchase price and any associated acquisition costs).

In Australia, capital gains are taxed under the Capital Gains Tax (CGT) regime, which is part of the Income Tax Assessment Act. When you sell an asset, such as an investment property, and realise a capital gain, you must report this gain in your income tax return for the financial year in which the sale occurred. The capital gain is included in your assessable income and taxed at your marginal tax rate.

Yes, Investax accountants are well-versed in CGT calculations. We can help you accurately determine your capital gain by considering various factors, such as the purchase price, sale price, holding period, and eligible deductions. This comprehensive approach ensures that all relevant information is factored in, including any costs associated with acquiring or improving the property, which can affect your capital gains tax liability. Our expertise in Australian tax laws allows us to provide tailored advice, ensuring compliance with Australian Taxation Office (ATO) regulations while optimising your financial outcomes. By working with an Investax accountant, you can gain valuable insights into potential strategies for minimising your tax obligations and maximising your investment returns.

To ensure valid deductions, make sure that your claimed expenses are directly related to your business operations. Keep all necessary evidence, such as receipts, invoices, and documentation, to support your claims. Consulting your tax professional can help you determine which deductions are eligible and provide guidance on proper documentation. Additionally, maintaining organized records throughout the year can significantly ease the tax filing process and help you avoid missing out on eligible deductions. Proper bookkeeping not only ensures compliance but also enhances your ability to forecast expenses and plan for future tax liabilities. By being diligent with documentation, you can optimize your tax savings and keep your business financially sound.

In Australia, a small business for tax purposes, is generally defined as one with an annual turnover of less than $10 million. This threshold applies to various tax concessions and benefits, including the Small Business Income Tax Offset, simplified depreciation rules, and the Small Business Capital Gains Tax concessions.

The simplified depreciation method is a streamlined approach designed for small businesses in Australia. It includes an instant asset write-off for eligible assets and a general small business pool for assets that don’t qualify for immediate deduction. This method simplifies the calculation of depreciation deductions, reducing administrative complexity for small business owners.

The instant asset write-off allows eligible small businesses to immediately deduct the cost of eligible assets up to a certain threshold. This deduction is claimed in the year the asset is first used or installed ready for use. It allows businesses to reduce their taxable income by deducting the cost of assets such as equipment, vehicles, and machinery.

If your small business has an aggregated turnover of less than $10 million (since 1 July 2016), you are generally eligible to use the simplified depreciation rules. However, eligibility criteria and thresholds can vary based on the financial year and specific circumstances.

Accurate and up-to-date records are essential for effective tax reporting and compliance. It enables you to track income, expenses, and financial transactions, making it easier to report to the ATO accurately. Good record-keeping also helps you identify potential discrepancies, support your claims, and demonstrate your business’s financial position.

Accounting software streamlines financial tasks, automates processes, and enhances accuracy. It helps businesses manage invoicing, expense tracking, payroll, and financial reporting more efficiently.

A Division 7A loan refers to a loan or financial arrangement made by a private company to a shareholder or their associate, where the terms and conditions of the loan are not at arm’s length or are less favourable than what would be available in a commercial transaction. Such loans are subject to Division 7A rules.

To avoid Division 7A implications, private companies should ensure that loans and financial arrangements with shareholders or associates are structured in accordance with the Div 7A loan requirements. You can take out dividends and wages to avoid Div 7A Loan.

For comprehensive information and expert guidance on Division 7A, we recommend reaching out to Investax accountants. We specialise in taxation matters and can provide you with the most up-to-date and tailored advice to ensure compliance with Division 7A rules. You can also visit the Australian Taxation Office (ATO) website for additional resources and information, but consulting with an Investax accountant can offer you personalised guidance specific to your situation.

The frequency of lodging a BAS depends on the size and turnover of the business. Generally, businesses lodge their BAS monthly or quarterly. However, there are also options for annual lodgement for certain small businesses.

An Instalment Activity Statement (IAS) is used by businesses to report and pay their Pay as You Go (PAYG) income tax instalments, Goods and Services Tax (GST) instalments, and other tax liabilities more frequently than the BAS. It’s often used by businesses that do not have a GST turnover.

A Taxable Payments Annual Report (TPAR) is a report that certain businesses need to lodge with the ATO. It includes details of payments made to contractors for services provided. Industries such as construction, cleaning, and courier services are required to lodge a TPAR.

FBT is calculated based on the taxable value of the fringe benefits provided. Employers are required to report and pay FBT annually on their FBT return, which is usually lodged by 21 May each year.

All employers, regardless of their business size, are required to use Single Touch Payroll to report their employees’ salary, wages, PAYG withholding, and superannuation contributions to the ATO. This includes businesses, not-for-profit organisations, and government entities.

Reporting through STP is integrated into your regular payroll process. You need to use payroll software that is STP-enabled to send the required information to the ATO each time you process payroll. The software will generate and send the necessary reports directly to the ATO.

Super contributions for your employees must be paid by the 28th day following the end of each quarter. The due dates are January 28, April 28, July 28, and October 28.

If you miss the due dates for super payments, you could face penalties and consequences. The Australian Taxation Office (ATO) takes non-compliance with super obligations seriously.