Are You Getting Government Assistance?

Through Centrelink, the government provides financial and other assistance to people under a variety of programs. Some common payments you may have heard of are austudy, Newstart, youth allowance, parenting payment (single) and CDEP, the Community development employment program (one of the largest Indigenous programs in Australia). Depending on your circumstances you may be entitled to one or more of these payments.

Many Centrelink payments are assessable for income tax purposes and need to be included on your tax return.

Other government pensions, allowances and payments are exempt from income tax, for example, the disability support pension (when paid to a person who is below the age pension age).

Tax offset for government payments

If you receive a taxable government payment you may be entitled to a tax offset called the beneficiary tax offset. A tax offset will directly reduce the amount of tax you pay. The beneficiary tax offset is available if you receive more than $6,000 of an assessable government payment in a financial year (that is, the offset cuts in at the point you go over the tax-free threshold and would otherwise have to start paying tax). If you have other assessable income you may still need to pay some tax.

To claim the offset you must enter the payment you receive at the correct item on your tax return. The ATO will automatically calculate the offset for you when we process your tax return.

The offset will only reduce your tax, it will not reduce any Medicare levy you may have to pay.

You may also be entitled to the low income tax offset.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

Deceased Estate and Capital Gain Tax

Treatment of Property after Owner dies

When a person dies, the assets that make up their estate can:

  • pass straight to a beneficiary (or beneficiaries), or
  • pass straight to their legal personal representative (for example, their executor) who may dispose of the assets or pass them to the recipient, or beneficiary.

A beneficiary is a person entitled to assets of a deceased estate. They can be named as a beneficiary in a will or they can be permitted to the assets as a result of the laws of intestacy (when a person dies without having made a will).

A legal personal representative can be either:

  • the executor of a deceased estate (that is, a person appointed to wind up the estate in accordance with the will)
  • an administrator selected to wind up the estate if the person does not leave a will.

Date of Acquisition

If you acquire an asset own by a deceased person as their official personal representative or beneficiary, you are taken to have acquired the asset on the day the person died. If that was before 20 September 1985, you disregard any capital gain or capital loss you make from the asset.

Disregarding Capital Gain or Loss on Death       

capital gains tax (CGT applies to any change of ownership of a CGT asset, unless the asset was acquired before 20 September 1985 (pre-CGT).

There is a special rule that allows any capital gain or capital loss made on a post-CGT asset to be disregarded if, when a person dies, an asset they owned passes either:

  • to their legal personal representative or to a beneficiary
  • from their legal personal representative to a beneficiary.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

 

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

Senior Australians – Tax Offsets

Mature age workers, seniors and pensioners may be eligible for tax offsets. If you are a short income earner, you may be entitled for an offset and, if your medical expenses pass the threshold limit, you may be entitled for the medical expenses tax offset too. You may also be eligible for an offset if you receive earnings from a superannuation income stream

If you are a Senior Australian, you may be entitled for the seniors and pensioners tax offset.

The seniors and pensioners tax offset (SAPTO) can decrease the amount of tax you are liable to pay. In some cases, this offset may reduce your tax liability to zero and you may not have to lodge a tax return.

To be eligible for this tax offset, you have to meet certain conditions connecting to your income and eligibility for an Australian Government pension.

If you are a senior, you must meet the age requirement for the Age pension to be eligible for the offset.

In some cases, you may also be able to move your eligible spouse’s unused SAPTO to you. We calculate their transfer amount available and include this amount when calculating your SAPTO.

If you have reached the age pension age, the seniors and pensioners tax offset lets you earn more money before you must pay tax or the Medicare levy. There are a range of eligibility circumstances which relate to age, income, and eligibility for Australian government pensions or allowances.

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

Small Business Income Tax Offset

An individual is entitled to a tax offset on the tax payable on their share of net small business income earned by a sole trader, partnership or trust that is a small business entity. Self-employed as a sole traders, partnerships and trusts that are small business entities need to work out their net small business income as well as the partner’s and beneficiary’s share of that income.

For more information on Tax related or any other related matter, please call our professional accountant on 1300 768 284 

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , please contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Low Income Super Tax Offset Contribution (LISTO)

The government will introduce a Low Income Superannuation Tax Offset (LISTO), which will replace the Low Income Superannuation Contribution (LISC) policy that has been repealed from 1 July 2017.

LISTO will provide continued support for low-income earners and ensure that generally they do not pay more tax on their super contributions than on their take-home pay.

From 1 July 2017, eligible individuals with an adjusted taxable income up to $37,000 will receive a LISTO contribution to their super fund. The LISTO contribution will be equal to 15% of their total concessional (pre-tax) super contributions for an income year, capped at $500.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Tax Offset for Super Contributions on Behalf of Your Spouse

You will be entitled to a tax offset of up to $540 per year if you meet all of the following conditions:

  • The sum of your spouse’s assessable income, total reportable fringe benefits amounts and reportable employer super contributions was less than $13,800
  • The contributions were not deductible to you
  • The contributions were made to a super fund that was a complying super fund for the income year in which you made the contribution
  • Both you and your spouse were Australian residents when the contributions were made
  • When making the contributions you and your spouse were not living separately and apart on a permanent basis.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Tax Offsets – Medical Expenses

The net medical expenses tax offset is being phased out.

From 2015–16 until 2018–19, claims for this offset are restricted to net eligible expenses for disability aids, attendant care or aged care.

Net expenses are your total eligible medical expenses minus refunds you, or someone else, received from:

  • National Disability Insurance Scheme (NDIS)
  • Private health insurers.

This offset is income tested. If you are eligible for the offset, the percentage of net medical expenses you can claim is determined by your adjusted taxable income (ATI) and family status.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au