The Blogs that appear on this page may be sourced from outdated material so please seek appropriate professional advice. The blog material is in no way intended to be personal financial planning advice.

Catherines Chat

Wholistic Financial Solutions provides a lot of essential information and updates regarding the property investment industry. Check this page for the updates.

Australian Taxation Office catching up with Technology

Friday, August 16, 2013

Hi All,

This year the ATO are trying to catch up with technology and (seemingly) reduce people calling in to follow up their tax return.

They have launched a free App for both Android and Apple phones.

 

Apple -https://itunes.apple.com/au/app/ato-tax-2013/id664461825?mt=8&ls=1

Android- https://play.google.com/store/apps/details?id=au.gov.ato.ATOTax&hl=en

 

This App also has a handy calculator to help you work out a rough guideline of whether or not your employer is withholding enough tax.

Of course you can do the same things on the ATO website, but some people may prefer to check in on their refund more regularly. Therefore the app can be handy.

Just make sure to protect your TFN at all times as it is highly sensitive information.

ATO Scams

Tuesday, July 23, 2013

If you receive an email along the lines of the email below do not open it.

In fact, do not ever open an email supposedly from the ATO.  The ATO do not communicate via random emails.

 

Private Health Insurance Rebate Entitlements

Friday, July 19, 2013

Hi all,

It has come to our attention with the start of the new tax season that many people were not aware that the private health insurance rebate is now means tested.* Generally from 2013 if your income is greater the $168,000.00 for a couple with no dependents ($84,000.00 for a single) then your only entitlement to a rebate from the government may be reduced, unlike in previous years were it was 30% across the board.  Additionally, the percentage of rebate you are entitled to reduces as income moves between the various tiers - please see table below:

 

Entitlement by income threshold 2012-2013.

(Australian Taxation Office)

 

The difference between the rebate you claimed and the rebate you received is calculated as either refundable or payable on lodgement of your return, dependant on if you over or under claimed. Please update your information with your private health insurer if you know you are claiming more rebate then you are entitled to.

 

The ATO have developed a helpful calculator to help you work out the rebate you are entitled to for the 2014 financial year.  Please click here to access it. The table for 2014 follows:

Entitlement by income threshold 2013-2014.


 

(Australian Taxation Office)

 

*Please note that is general information only to highlight this issue to our readers and clients. This does not constitute advice or take into account your individual circumstance.

 

Works Cited

Australian Taxation Office. (n.d.). Individuals: Medicare Levy. Retrieved July 7, 2013, from www.ato.gov.au: http://www.ato.gov.au/Individuals/Medicare-levy/In-detail/Medicare-levy-surcharge/Changes-to-private-health-insurance-rebate-and-Medicare-levy-surcharge/

 

EOFY Tax Planning

Friday, April 19, 2013

Hello All,

Catherine is away at National’s for Dragon Boat racing and I thought I would take this opportunity to hijack her blog and write about tax. It is getting to the point in the financial year where people need to start thinking about end of year tax strategies and how the tax changes implemented for 2013 can really affect them. For example, does the tax free threshold rising to $18,200 mean that you no longer need to lodge a tax return? The ATO have some good calculators available on their website to help you make this decision. But when in doubt remember to ask a professional.

For those in business it is time to look at whether or not you have contributed enough into superannuation for yourself and does the business have enough profit in it for you to contribute more? It also time to make sure if you are a sole trader that you register with you super provider to claim super contribution’s as a deduction in your personal tax.  As we get closer to the end of the financial year (EOFY) we will give you more hints and tips. Please feel free to comment below if you have any questions you would like answered or have anything in particular you are interested in hearing about for EOFY. Remember that now can be the best time to get in and see your accountant for some tailored strategic advice.

That’s enough from me for now but you might see me again posting on Catherine’s blog as we get closer to the new tax season.

Lexie O’Toole

2012 Tax Changes - Fuel changes

Saturday, July 28, 2012

Fuel changes

There will be some key changes to fuel tax credits from July 2012. The following rate changes will be affected:

  • Liquid fuels, including diesel, petrol or fuel oil used in some off-road activities
  • The introduction of a carbon charge
  • Heavy vehicles travelling on a public road
  • Gaseous fuels
  • And some blended liquid fuels

When calculating fuel tax credits, you’ll need to use the rate applied when you acquired the fuel.

For more details on fuel tax credits for fuel acquired from July, you’ll need to check out this table here.

2012 Tax Changes - Building Industry Reporting

Saturday, July 28, 2012

Building industry reporting

If you’re a business or entrepreneur operating in the building or construction industries, then you’ll need to start reporting on every payment made to contractors in the New Year.

As for who needs to report – any business primarily operating in the building and construction industries, including businesses making payments to contractors. If more than half of your business activity relates to building and construction, then you need to start reporting.

The details you need to report for each contractor include:

  • ABN
  • Name
  • Address
  • Gross amount paid in the financial year
  • Total GST included in the gross amount paid

You’ll also need to report worksheets and other records, including payment details for work done in relation to any sort of building or structure. That includes construction, demolition, design, destruction, erection, improvements, maintenance and repair.

Contractors who pay other contractors may need to fill in all this information as well.

Businesses will need to make this report by July 21 each year, but don’t fear – the first report isn’t due until July 2013.

2012 Tax Changes - new Tax Brackets

Saturday, July 28, 2012

Brand new tax brackets – including carbon tax assistance

As part of the government’s introduction of the carbon tax, there’ll be some dramatic changes to the income tax rates – including the adjustment of the tax-free threshold to $18,200 from the current level of $6,000. That means you’ll be able to earn up to $20,542 before any tax is payable at all.

These changes are crucial for employers. Next year, your staff will have less tax withheld from their paychecks, so you’ll need to make the necessary changes to ensure they’re being paid correctly.

Here are the tax brackets for the 2011-12 year, followed by the new tax brackets, which will take effect from the 2012-13 year.

2011-12:

  • $0 - $6,000 = Nil
  • $6,001 - $37,000 = 15c for every $1 over $6,000
  • $37,001 - $80,000 = $4,650 plus 30c for every $1 over $37,000
  • $80,001 - $180,000 = $17,550 plus 37c for every $1 over $80,000
  • $180,001 and over = $54,550 plus 45c for every $1 over $180,000

2012-13:

  • $0 - $18,201 = Nil
  • $18,201 - $37,000 = 19c for each $1 over $18,200
  • $37,001 - $80,000 = $3,572 plus 32.5c for every $1 over $37,000
  • $80,001 - $180,000 = $17,547 plus 37c for every $1 over $80,000
  • $180,001 and over = $54,547 plus 45c for each $1 over $180,000

At the same time, the maximum value of the low-income tax offset reduces from $1,500 to $445, and after that, will be reduced by 1.5 cents in every dollar over $37,000. Previously, that number was at $30,000. From 2015, that figure will be reduced to just $300.

The pensioner tax offset will merge with the new senior Australians tax offset. Meanwhile, there have also been some changes to the Medicare levy and Medicare levy surcharge thresholds.

From July 1, the Medicare levy surcharge thresholds will be changed, while the low-income thresholds will be changed as well. The full details of those changes are available on the Australian Tax Office’s website here.

Little known Tax Tip for Year End Planning for Business

Friday, June 29, 2012

Little known Tax Tip for Year End Planning for Business

 Increased Instant Asset Write-Off Threshold for business starting July.  Assets costing under $6,500 will be able to be claimed outright rather than depreciated.  This is up from the existing $1000 rule.  So you may want to delay any large purchases till next week. 

Year End Tax Tips for Property Investors

Friday, June 29, 2012

Year End Tax Tips for Property Investors

n  Documentation – when it doubt – keep the record anyway so your Accountant can claim it if possible.

n  Depreciation – Have you got a depreciation report for every property?  If not, get one.  It is free cash in your pocket.  We use a company that guarantees more cash to you than the report costs

n  Travel – ATO accepts 4 trips per year to the property and maybe more if justified.  Keep travel expenses and diaries.

n   Interest Expenses  - Learn how to maximise tax deductible debt and minimise non tax deductible debt

n  Pre-Pay Expenses – interest & other expenses can be pre-paid 12 months in advance

n   Manage Capital Gains & Losses – if you are selling a property speak to your Accountant first.  An Accountant experienced in CGT can save you hundreds of thousands of dollars by correctly planning Capital Gain

n   Manage Capital Losses – if you are selling an Asset for a Gain are these any Assets you can also sell for a loss to help you minimise the gain?

n   PAYG Variation – get it done now ready for next year. Extra cash in your pocket per fortnight.

Tax Saving Tips for Year End

Friday, June 29, 2012

Year End Tax Tips for Individuals and Businesses - Save Tax Now - Hurry ends 30 June

n  Delay Income – invoice or get paid after 30 June

n  Bring forward expenses

n  Prepay Expenses up to 12 months in advance

n  Maximise Concessional Super Contributions – up to $25,000 or last opportunity for those over 50 to contribute $50,000

n  Maximise Medical Expenses as thresholds change next year

n  Utilise the Super Co-Contribution –for the last time the Government will match up to $1000 -  reducing to $500 from 2012

See www.wfscanberra.com.au/ for more info

 


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