Happy New Year! Thank you for the opportunity to help prepare your tax return last financial year and once again we look forward to preparing and lodging your return for 2012.
Changes that effect the current financial year
Tax Free Threshold
From 1 July 2012 the tax free threshold has increased from $6,000 to $18,201.
Medicare Levy Threshold and Private Hospital Cover Rebate
From 01/07/2012 the private hospital cover rebate and the Medicare levy Surcharge will have three tiers of income for singles and families, to best illustrate this I have included a table on my website that shows all of the thresholds.
Medical Expense tax offset
From the first of July 2012 the medical expense tax offset will be means tested, $84,000 for singles and $168,000 for couples, the amount you can claim has also been reduced to 10% of amounts over $5,000, so make sure you contact the Medicare office to ensure you receive all your Safety Net entitlements.
Occupations Targeted by ATO for work related Expenses for 2011 return are; Real estate and airline employees, carpenters and joiners and earth moving plant operators, so if you work in these fields please pay additional attention to keeping all your receipts close to hand.
ATO Letters, some clients will receive letters from the ATO regarding work related expenses and investment properties, these are randomly generated by the tax office and are targeting issues that we discuss when completing you tax return so please do not feel that you are not entitled to claim deductions.
If you are traveling and staying overnight for work please ensure that you payroll officer separates an amount for a travel allowance so that you can claim the rates of incidentals without receipts.
There are exciting developments for small business including immediate write off for equipment costing up to $6,500 purchased after 01/07/2012.
Ongoing Tax Issues
If you are claiming motor vehicle expenses under the log book method please remember that a log book lasts for five years or if your pattern of use changes by more than 20% you must complete a new log book. We have log books available at our office in electronic and hard copy version.
Financial Lenders are being competitive, if you would like someone to check on your home or investment loan please ask and I can refer you to a broker to see if you can get a better interest rate.
We look forward to hearing from you soon, to make an appointment for myself or one of my staff please call or email the office. Saturday morning and after hour are still available by appointment only. To make the process easier I have listed below documents and information you will need in order to lodge your tax return.
Financial Year Ended 2012.
- All PAYG Payment Summaries from employment.
- PAYG Payment Summaries from Center link for new start allowance, sickness benefits
- Interest earned on bank accounts.
- All Foreign income and foreign investment losses
- All dividend statements including dividend reinvestments.
- Employee option or share scheme documentation.
- Financial summaries from managed funds and other financial institutions.
- Total interest charged on margin loans and other investment loan products.
- All Buy and Sell Contract Notes from share trades
- Private Hospital Cover details.
- All receipts for work related expenses or a spreadsheet regarding these expenses, including; Union fess, overtime meal allowance, seminars and conference fees, books, journals, trade magazines, tolls and equipment, protective clothing or uniform with logo, sunscreen, sunhat, sunglasses, computers, software and upgrades, mobile phone and home office running costs.
- Education expenses in excess of $250 including related travel.
- Log book for work related motor vehicle expenses were work travel was greater the 5,000 km.
- Total amount of work related km’s traveled were total work traveled was under 5,000 km.
- Rental property statements, interest charged and related expenses
- Charitable donation receipts.
- Medical expenses in excess of $2,060 for whole family, after any reimbursements.
- BSB and Account Number for a quick refund by direct deposit into your bank account.
As a tax agent I can offer extensions between March 2013 and May 2013, please contact the office for your specific date.
Interactive Tax Consultants has associate practices in financial planning, wealth management, commercial law, mortgage broking, commercial loans and quantity surveyors, so please ask if you require no obligation assistance in any of the areas mentioned.
We look forward to hearing from you soon!
Welcome to the InterActive Tax Consultants’ news – part of our personal and easy to understand approach to taxation. We are committed to working with you to achieve the best results for your business. If you have any question or would like more information on any of the articles please contact us.