Tax Tips for 2012 to help you get your Tax Back
Provided by “123 Bookkeepers and Accounting” Sydney
Ph 02 9086 9444
20 Bayswater Rd
Potts Point 2011
By getting your tax back from us, you will also be helping The Wayside Chapel continue to provide unconditional love, care and support to people on and around the streets in Kings Cross. Under the banner of Love Over Hate, Wayside’s programs and services are designed to ensure that the most marginalised members of our community have access to essential health, welfare, social and recreational services, as well as offering a place where people are welcome just to ‘be’.
Step One Income:
What income should I declare to the Tax Office – ATO?When considering what income to declare, it is important to be aware that the ATO has sophisticated systems to data match many sources of income.Here is simple mini checklist of income sources that the ATO can data match:
- Payment Summaries also known as Group Certificates
- Aust Government allowances and payments (eg Newstart)
- Gross Interest – even if a joint account (anywhere your TFN is declared)
- Dividends received from listed and non listed companies, sales of shares
- Income from partnerships and/or trusts and/or directors fees from companies
- Personal Services Income as a sole trader
- Rental Property Income
- Any other income, eg Foreign income from property, interest or salary
Step Two Deductions:
What deductions can I claim on my tax return? These are all out of pocket expenses that have NOT been reimbursed by employer or anyone.Next we try to reduce your taxes by looking at what deductions you are entitled to claim and what documents you need to substantiate or collate the data? Up to $300 can be claimed without receipts.A receipt, credit or bank statement for proof of purchase. If you are audited by the ATO and you have verification on a bank statement you can go back to the business that provided the goods and obtain the actual receipt if required.
How to claim work and study related car expense claims?
Usually most people won’t be able to claim for travel to and from work. It is possible to claim travel expenses when you are travelling from Home to a different work location eg visiting a client or travelling to a study location or you have two jobs. Tax rules apply. The Tax Men Sydney can advise you.
If you require to use your car for work related expenses then the main two forms of methods are:Logbook method, this requires a recording of both personal and business kms to be recorded across a 3 month consecutive period and then a % for business usage is calculated. The logbook can be claimed for up to the next 5 years. In addition proof of car expenses, fuel, rego, insurance, tolls, parking, repairs is also required. If you can provide a spreadsheet then it is faster to process. Another method is Cents per kms: How many business kms to a maximum 5,000kms have you travelled for the financial year? Supply engine size and make and year model of the car.
Other work related travel expenses
These are out of pocket expenses not reimbursed by your employer. Did you travel for work? Overseas, interstate or even locally? The ATO have guidelines for these. If you don’t have all the receipts that maybe ok. Just supply the dates and places visited for work. We maybe able to claim meals, accommodation and incidentals at the ATO rate which is quite generous.
Work related uniform and other clothing expenses
- Protective clothing, Steel cap shoes, hard hats, gloves, non-slip shoes,
- Occupation Specific Clothing: aprons, chef pants etc
- Laundry (up to $150 without receipts)
- Dry Cleaning
Work related self-education expenses (formal courses)
Did you undertake a formal course that was industry related that you paid for yourself?
That includes travel, accommodation, books, and parking travel to and from etc
Other work related expenses
- Seminars and courses not at an educational institution but related to your work
- Mess fees
- Home office expenses Electricity – require a diary entry of hrs worked, Rent – if using ABN
- Computer and software
- Mobile phone
- Internet connection
- Tools and equipment
- Subscriptions, union fees or professional body fees
- Journals, Books, magazines, stationary
- Expenses in relation to allowances
- Overtime Meals
- Sun protection sunglasses, sun screen
- Depreciation – capital items costing over $300, eg, laptop, iPad, computer
- Any other work related deductions you may want to ask us about
- Gifts and donations, including donations to political parties
- Cost of managing tax affairs (e.g. tax agent fees)
Step Three Offsets:
- Do you have Private Health Insurance? If Yes provide documentation
- Out of pocket expenses after Medicare and health fund rebates $1,500 before 2011; $2,000 after 2011
- Did you live in a remote zone or served overseas with the Defence Force?
- Did you maintain a parent, parent-in-law or invalid relative?
- Are you claiming Entrepreneurs Tax offset?
Are entitled to claim a Medicare exemption or rebate?
You may be entitled to claim the Medicare Levy rebate if you don’t have a Medicare Card and have not applied to be a permanent resident. Also you were not a resident of the UK, Northern Island, Italy, Malta, Sweden, The Netherlands, Finland or Norway prior to entering Australia. These are the basic requirements and application submitted. We will provide the necessary forms and we have a JP to sign the documents required.
Rental Property or investment expenses in relation to
- Contract of purchase – if new property
- Rental statement including rates and utilities
- Depreciation schedule if applicable. If you don’t have a proper depreciation schedule call BMT on 1300 728 726 mention our name and receive a discounted report
- Expenses in maintaining the property, NOT replacement
- Bank loan statements for the financial year to calculate interest
- Inspection costs of property up to twice yearly
- Capital purchases eg, Hot water system, Air conditioner, Fencing, kitchen renovations, etc
- Cost of borrowing
Information provided by 123 Bookkeepers and Accounting to help you prepare you get your tax back.
We can help sort your tax and bookkeeping matters out no matter what the issue is and help you get up to date no matter how far you are behind.Phone to make a time to drop by and see us on 02 9086 9444
Download 123 Bookkeepers and Accounting Tax Tips 2012 – Phone 9086 9444.pdf (87 KB)
To find out more please call us on +61 2 9086 9444