You can see what your tax refund will be using this tool: Free Online Income Tax Calculator
Online Tax Return service - In addition to generating a FREE tax refund calculation, what ezTax does is present you with easy step-by-step instructions, detailed but simple explanations, intuitive processes, easy payment methods, supported by a comprehensive knowledge base and access to a certified accountant and registered tax agent online – all from your own home.
The response for ezTax, even since its recent release, has been phenomenal. I’m so sure that you are going to love ezTax that I am willing to completely guarantee it! Here is what you can learn:
* what income you don’t have to declare
* an explanation of common deduction
* how much in deductions you can claim without receipts
* expenses you can claim for your childrens’ education
* what medical costs you can claim for
6 July 2009
Tax Calculator
3 July 2009
Online Tax Return 2009
When it comes to online tax returns in Australia in 2009, the Tax Office's message is "...stay on the right side of the law."
This was a recent sponsored add on Google posted by the Australian Taxation office. They are obviously referring to Australian's preparing and lodging their annual tax returns online using the ATO's own e-tax online tax return system. It is a concern to the My Tax Zone team as the Tax Office has dedicated a lot of resources to developing their online systems, yet they don't trust Australians to use them responsibly. Or maybe it is recognition that their online tax return systems are just too complicated, lacking professional support necessary not only to "stay on the right side of the law" but also to obtain the maximum refund entitlement, which many miss when they do their online tax return without support.
That is certainly our view. We are further surprised at the decision by the Tax Office to phase out TaxPack which has been a very effective source of information for non-online tax return preparers. Instead, their focus will be on driving Australians online when it comes to preparing their annual tax returns or searching for tax information.
That is why we have developed our own online tax return services which include:
- Tax Blog - a comprehensive and easy to use online tax information resource and includes the basics you need to know to prepare your online tax return and updates on tax tips, changes and warnings.
- Online Tax Retrun service - In addition to generating a FREE tax refund calculation, what ezTax does is present you with easy step-by-step instructions, detailed but simple explanations, intuitive processes, easy payment methods, supported by a comprehensive knowledge base and access to a certified accountant and registered tax agent online – all from your own home.
The response for ezTax, even since its recent release, has been phenomenal. I’m so sure that you are going to love ezTax that I am willing to completely guarantee it! Here is what you can learn:
- what income you don’t have to declare
- an explanation of common deduction
- how much in deductions you can claim without receipts
- expenses you can claim for your childrens’ education
- what medical costs you can claim for
Ok, So What is the Cost for This Powerful Yet Simple Online Tax Process.
Normally something like this would cost you $99 or more. And if you had to research this information yourself, it could take many hours to come up with the right answers, if at all.
However, I am only going to charge you a fraction of that price. In fact all it is going to cost you is $29.95.
Why does it only cost you this amount? More and more we are demanding further satisfaction from our access to the internet - we are still discovering what a powerful information tool it can be. Taxation services, relying primarily on information and the application of knowledge, is a prefect fit for this challenge. The beauty of such applications is the cost to maintain it, compared to the cost of supplying offices, equipment and staff to run it, are relatively low.
Not only am I going to give ezTax online tax service for this price but I am going to offer you the following bonuses:
Bonus 1: Taxation doesn’t have to be hard. Half the battle is finding the right information when you need it. When you use ezTax you will enjoy access to our comprehensive knowledge base – and it’s FREE.
Bonus 2 – eBook titled “Discover Wealth Hidden in Your Salary: A Simple Guide to Taxation and Property Investment in Australia.”
Considering the complexities of taxation laws and regulations in Australia, it would be in the interest of every property investor to have a reliable and simple guide to taxation and property investment. Discover Wealth Hidden in your Salary is just that.
What this NEW eBook does is help you discover:
- How negative gearing works and how you can use it to save tax
- How property selection can almost double the tax benefits
- How to release the tax savings and benefits when you need it most - in your weekly pay and
- Peace of mind, knowing you comply with tax office rules
- Deductions that cut the tax office take and improve your bottom line return
The recommended retail price of this eBook is $34.95. When bundled with your ezTax return you save $20. The cost to you is just $14.95.
You enjoy access to both of these bonuses when you use ezTax.
22 June 2009
What Medical Expenses Eligible for Medical Expenses Tax Offset?
The medical expenses must be for:
- you
- your spouse – married or de facto – regardless of their income
- your children who were aged under 21 years, including adopted and stepchildren, regardless of their income
- any other child aged under 21 years – not a student – whom you maintained and whose separate net income (SNI) was less than $1,786 for the first child and lessthan $1,410 for the second child and any subsequentchildren
- a student aged under 25 years whom you maintained and whose SNI was less than $1,786
- child-housekeeper, but only if you can claim a taxoffset for them at item T1 on your tax return, or
- an invalid relative, parent or spouse’s parent, but onlyif you can claim a dependant tax offset for Parent, Spouse's parent or invalid relative.
Medical expenses which qualify for the tax offset also include payments:
- to dentists, orthodontists or registered dental mechanics
- to opticians or optometrists, including for the cost ofprescription spectacles or contact lenses
- to a carer who looks after a person who is blind orpermanently confined to a bed or wheelchair
- for therapeutic treatment under the direction of a doctor
- for medical aids prescribed by a doctor
- for artificial limbs or eyes and hearing aids
- for maintaining a properly trained dog for guiding orassisting people with a disability (but not for socialtherapy)
- for laser eye surgery, and
- for treatment under an in-vitro fertilisation program.
- cosmetic operations for which a Medicare benefit isnot payable
- dental services or treatments that are solely cosmetic
- therapeutic treatment where the patient is notformally referred by a doctor – a mere suggestion or recommendation by a doctor to the patient is notenough for the treatment to qualify; the patient mustbe referred to a particular person for specific treatment
- chemist-type items – such as tablets for pain relief – purchased in retail outlets or health food stores
- inoculations for overseas travel
- non-prescribed vitamins or health foods
- travel or accommodation expenses associated withmedical treatment
- contributions to a private health insurer
- purchases from a chemist that are not related to an illness or operation
- life insurance medical examinations
- ambulance charges and subscriptions, and
- funeral expenses.
(Source ATO)
20 June 2009
Tax Office Audit of Rental Properties 2009
This year the Tax Office will write to around 110,000 people who have purchased rental properties in the past 12 months with advice on claiming rental property deductions.
We have received notification from the ATO regarding forwarding these letter to clients with a draft letter. Te focus is on interest deductions, asking taxpayers to check their records. No other follow-ups are expected from the ATO relating to these letters.
19 June 2009
Claiming Union & Professional Assoc. Fees
See also ==> Deductions Q & A's
You can claim a deduction for these fees. If the amount you paid is shown on your group certificate, you can use it to prove your claim. You can claim a deduction for a levy paid in certain circumstances—for example, to protect the interests of members and their jobs.
Claiming Low Value Pool Depreciation
See also ==> Deductions Q & A's
Work related tools and equipment costing between $300 and $1000 can be allocated to a Low Value Pool depreciated under. Tools and equipment that have declined in value from other depreciation methods can also be allocated to the Low Value Pool.
Working out Depreciation
You work out your deduction for the decline in value of depreciating assets in a low-value pool using a diminishing value rate of 37.5%.
For the income year in which you first allocate one or more low-cost assets to a low-value pool, you work out your deduction at a rate of 18.75%, or half the normal pool rate. Halving the rate recognises that assets may be allocated to the pool throughout the income year and eliminates the need for separate calculations for each asset based on the date it is allocated to the pool.
Once you choose to allocate a low-cost asset to a low-value pool, all low-cost assets you start to hold in that and any subsequent income year must also be allocated to the pool.
Why use Low Value Pool
Low Value Pool method of depreciating tools and equipment will almost always result in a larger deduction for two reasons:
The Low Value Pool rate is higher than most depreciation rates - even in the first year;
Assets that can not be allocated to a Low Value Pool
You cannot allocate the following depreciating assets to a low-value pool:
- assets for which you have previously claimed deductions worked out using the prime cost method
- assets that cost $300 or less for which you can claim an immediate deduction
- assets for which you deduct amounts under the simplified depreciation rules for small business entities (see note below), and
- horticultural plants.
Claiming Tools & Equipment
See also ==> Low Value Pool
Claim in full
Tools and equipment bought between 1 July 1991 and 11.45 a.m. on 21 September 1999 can be depreciated at a rate of 100 per cent—that is, you can claim an immediate deduction—if the cost of the item is $300 or less or its effective life is less than 3 years. You can see what your tax refund will be using this tool: Free Online Income Tax Calculator
Depreciation
You can claim a deduction for the work related part of the depreciation on the cost of the tools and equipment you use for work. How you calculate your deduction may vary depending on when you bought an item and how much it cost.
Tools and equipment bought between 11.45 a.m. on 21 September 1999 and 30 June 2000 can also be depreciated at the rate of 100 per cent if the item cost $300 or less. Every other item bought during this period must be depreciated over its effective life, even if it has an effective life of less than 3 years.
Repairs
You can claim a deduction for the cost of repairing tools and equipment to the extent that you use them for work.
(Source ATO)
Claiming Seminars, Conferences & Training
You can claim a deduction for the cost of attending seminars, conferences and training courses that are sufficiently connected to your work activities at the time the expenses were incurred, provided your employer or any other person did not reimburse the costs. You can see what your tax refund will be using this tool: Free Online Income Tax Calculator
(Source ATO)
Claiming for car Wash
See also ==> Car Expenses claims & methods
You can include car wash expenses in the calculation of car expenses if you use your vehicle to earn your income and you use the logbook method or one-third of actual expenses method of claiming your car expenses.
Remember, if your employer reimbursed your car expenses calculated by reference to the distance travelled by the car, include the amount you received at item 1 or 2—even if you cannot claim a deduction for these expenses. You can see what your tax refund will be using this tool: Free Online Income Tax Calculator
(Source ATO)Car Expenses that are Non Deductible
You can see what your tax refund will be using this tool: Free Online Income Tax Calculator
Travel between home and work
You cannot claim a deduction for the cost of normal trips using your car to travel between your home and your workplace. It is a private expense even if you do small tasks on your way to or from work—for example, picking up the office mail.
You cannot claim a deduction for the cost of home to work travel just because you work shift work, are 'on call' or there is no public transport available.
Motor vehicle provided by your employer or any other person
You cannot claim a deduction for car expenses if your employer or any other person provides a car for you and you do not pay for any of the running costs.
You cannot claim a deduction for any expenses you incur for the direct operation of a car that your employer provides and that you or your relatives use privately at any time, even if the expenses are work related. Such expenses form part of the valuation of the car for fringe benefits tax purposes. However, you may be able to claim expenses such as parking and bridge fees that are linked to the car but are not involved in its direct operation.
FREE tax refund calculation - How much refund
(Source ATO)
Claiming Work Clothes, uniforms & Overalls
See also ==> Deductions Q & A's
You can see what your tax refund will be using this tool: Free Online Income Tax Calculator
Compulsory uniforms
A compulsory uniform is a set of clothing that, worn together, identifies you as an employee of an organisation having a strictly enforced policy that makes it compulsory for you to wear the uniform while at work. You can claim a deduction for the cost of buying, renting, repairing and cleaning a compulsory uniform.
You may be able to claim a deduction for shoes, socks and stockings where they are an essential part of a distinctive compulsory uniform, the characteristics of which—colour, style, type—are specified in your employer's uniform policy. The uniform policy must be consistently enforced.
Single items of compulsory clothing
You may be able to claim for a single item of distinctive clothing, such as a jumper, where it is compulsory for you to wear it at work. Generally, clothing is distinctive where it has the employer's logo permanently attached and the clothing is not available to the general public.
Non-compulsory uniform or wardrobe
If your employer encourages you to wear a uniform or wardrobe but it is not compulsory for you to wear one, you can claim a deduction for the cost of the clothing only if the design of the clothing is registered. If you wear a non-compulsory uniform or wardrobe, you cannot claim for stockings, short socks or shoes as these items cannot be registered as part of a non-compulsory uniform. Your employer can tell you if your non-compulsory uniform or wardrobe is registered. If your employer requires you to wear a distinctive uniform or wardrobe but does not consistently enforce the wearing of the uniform, the design of the uniform must be registered before you can claim a deduction.
Occupation specific clothing
You can claim a deduction for the cost of occupation specific clothing. This is clothing that is specific to your occupation, is not everyday in nature and would allow the public to easily recognise your occupation—for example, a barrister's robes.
Protective clothing
You can claim a deduction for the cost of buying, hiring, replacing or maintaining protective clothing. This is clothing that protects you from injury at work or protects your everyday clothing from damage.
Laundry and dry cleaning
If you can claim a deduction for your eligible work clothes as described above, you can also claim a deduction for the cost of cleaning them. You can claim laundry expenses for washing, drying or ironing such work clothes, including laundromat expenses. If your claim for laundry expenses is $150 or less, you do not need written evidence—you may use a reasonable basis to work out your claim.
If you claim a deduction for laundry expenses that is more than $150 and your total claim for work expenses—other than car, meal allowance, award transport allowance and travel allowance expenses—exceeds $300, you need written evidence for the total claim. You can claim the cost of dry cleaning eligible work clothes as described above, if you have kept written evidence to substantiate your claim. You do not need written evidence if your total claim for work expenses is $300 or less.
Visit http://www.eztax.com.au/ for a FREE tax estimate.
(Source ATO)
Claiming Computers and Software
You can see what your tax refund will be using this tool: Free Online Income Tax Calculator
You can claim a deduction for the work related proportion of depreciation on the cost of computers. If you use your computer for private purposes you must apportion your depreciation amount between work related and private use. You can also claim a deduction for the work related proportion of the cost of repairs to your computer and interest on money borrowed to finance its cost.
Costs incurred in acquiring, developing or commissioning computer software are depreciable and deductible over 2 ½ years at the rate of 40 per cent per year for the part of the year you owned the software. However, you may be able to immediately claim such costs in full where you incurred them:
- before 1 January 2000 and for the principal purpose of ensuring that an existing computer system is year 2000 compliant or
- in acquiring one copy of a particular unit of software during the current year, and its cost was less than $300 or
- in acquiring more than one copy of a particular unit of software during the current year, and the total cost of all the copies you acquired was less than $300.
In all cases, you must apportion your claim between work related and private use.
(Source ATO)
Claiming Bank Account Fees
See also ==> Deductions Q & A's
Most financial institutions charge account-keeping fees. You can claim these fees where the account was held for investment purposes, for example, a cash management account. You will find these fees listed on your statements or in your passbooks.
If you were not the sole holder of an account you can only claim your share of fees, charges or taxes on the account. For example, if you held an equal share in an account with your spouse, you can only claim half of any allowable account-keeping fees paid on that account.
You can claim a deduction for Financial Institutions Duty that relates to the direct depositing of salary, wages, allowances or payments into your bank account. You can claim a deduction for government duties tax or debits tax charged on any outgoing from your bank account where the transaction related to an allowable deduction—for example, work related expenses.You cannot claim a deduction for other bank fees that relate to transactions for private expenditure.
Payment Deferral for BAS debts
See also ==> Interest free Tax Break
See also ==> 50% Investment Allowance
The Tax Office is offering a deferral of the payment due date for activity statement liabilities for small businesses with an annual turnover of less than $2 million.
The deferral is intended to provide relief to small businesses facing financial difficulties and encourage them to keep their tax matters on track.
A deferral of up to two months can be granted for quarterly and annual payers and up to one month for monthly payers.
Activity statements still have to be lodged on time and no interest applies for the period of the deferral.
Businesses can contact the Tax Office on 13 11 42 to request a deferral of payment on their next activity statement.
The deferral applies to activity statements which are required to be lodged and have not yet been lodged.
(Source ATO media release)
18 June 2009
First Time Buyers Benefit in QLD Budget
Treasurer Andrew Fraser says the increase in the stamp duty threshold will save first homebuyers up to $5675 on the purchase of vacant land.
Transfer duty for first homebuyers is being abolished for blocks of land worth up to $250,000, Fraser says, whereas the threshold previously sat at $150,000.
"This initiative will not only make vacant land more affordable for first homebuyers to build on, it will also stimulate the building industry, which is a vital part of the Queensland economy," Fraser says.
