Tax in Australia

Tax in Australian can be a complex topic. Here are some reminders when preparing for income tax in Australia:

Income will include:
Gross salary, wages, allowances, benefits, earnings, tips and director's fees, Income from business activities,PAYG payment summary amounts, Any non-cash benefits received, Lump sum and termination payments, Government social security payments, including pensions, unemployment and sicknessbenefits, Capital gains from CGT asset sales (e.g. shares and real estate) [Information relating to dates and costs associated with acquisition and disposal will be required to determine the capital gain (if any). Remember that individuals, companies, trusts and superannuation funds can save tax if they qualify for the various CGT concessions], annuities, including allocated pensions, Income from trusts and partnerships, Rental income, Interest and dividends (franked or unfranked) including any tax deducted, Foreign source (employment and pension) income, Personal services income.

Deductions can include:
Investment and property expenses, Professional subscriptions (not including sporting or social clubs), Expenditure related to a taxpayer's employment, such as work-related motorvehicles, self-education, protective clothing, uniform expenses and home office expenses
Donations of $2 and over, depending on the recipient, Superannuation contributions made by self-employed persons and those without employer superannuation support, Tax agent's fees and other accounting and tax audit fees associated with managing tax affairs, Special deductions (e.g. Australian films, investment shelters and forestry-type schemes),, Bank fees (where the credit or deposit represents assessable income), Un-recouped prior year losses, Non-commercial losses [Individuals must satisfy one of four tests to offset losses from certain non-commercial business activities against other income. Sickness and accident insurance premiums, provided the premium incurred is against the loss of income.

Rebates including:
Details of private health insurance, unless the premium is net of the rebate [Statement from health insurance provider will be required to determine entitlement to rebate], details of superannuation contributions where no tax deduction can be claimed (maximumrebate of $540 for $3,000 superannuation spouse contribution), Any changes in dependants [Income of spouse will be required], Details of any income received in a lump sum which was accrued in earlier income years (e.g. assessable pensions), Details of medical expenses where the total exceeds $1,500 [Tax offset of 20% available], Superannuation co-contri­butions for contributions made by eligible employees, All taxpayers with a dependent child (under 21) or full time dependent student (under 25)should provide full names and dates of birth - Family Tax Benefit might be relevant, Cost of child tax offset, Education Tax Refund.

Copyright 2014. My Tax Zone.