Capital Gain Tax (CGT)

The factor at that you make a capital gain or loss is generally when you enter into the settlement for disposal, not while you settle. So in case you sign a agreement to sell an investment property in June 2020, and settle in August 2020, you need to file the capital advantage or loss to your 2019–2020 tax go back. If you’re an Australian resident, CGT applies for your belongings anywhere in the world. For Norfolk Island citizens, CGT applies to property acquired from 23 October 2015. Foreign residents make a capital gain or loss if a CGT event takes place to an asset that is ‘taxable Australian belongings’.

  • Most personal assets are exempt from CGT, consisting of your home, car and personal use assets inclusive of furniture.
  • CGT additionally doesn’t observe to depreciating belongings used solely for taxable purposes, along with business equipment or fittings in a rental property.

If you promote a capital asset, including real estate or shares, you generally make a capital gain or a capital loss. This is the difference among what it price you to collect the asset and what you receive when you put off it. You want to document capital profits and losses to  our profits tax return and pay tax in your capital profits. Although it’s called capital profits tax (CGT), this is simply part of your profits tax, not a separate tax. When you are making a capital benefit, it is brought on your assessable profits and can significantly increase the tax you need to pay. As tax is not withheld for capital gains, you may want to work out how tons tax you may owe and set aside sufficient funds to cowl the relevant amount. If you are making a capital loss, you can not declare it in opposition to your other earnings but you could use it to lessen a capital advantage. All assets you’ve acquired considering that tax on capital profits started (on 20 September 1985) are situation to CGT unless specifically excluded.

Exemptions:

  • Any asset obtained earlier than 20 September 1985, called a pre-CGT asset. But an asset loses its pre-CGT popularity if massive adjustments are made to it (e.g. essential additions to a building), or on the loss of life of the authentic owner.
  • The house, unit, etc., that's the taxpayer's important residence, and up to the first 2 hectares of adjoining land used for domestic purposes.
  • Personal use belongings, acquired for up to $10,000, such as boats, furniture, electrical device, etc., which are for personal use. Items generally bought as a hard and fast must be handled together for the $10,000 limit.
  • Capital loss crafted from a private use asset. (S108-20(1) ITAA1997 … any capital loss crafted from a private use asset is disregarded)
  • Collectables acquired for up to $500, along with art, jewellery, stamps, etc., held for private enjoyment. Items normally sold as a hard and fast must be dealt with as a hard and fast for the $500 limit. If collectables sometimes rise in cost then this exemption may be a bonus to a taxpayer gathering small items.
  • Cars and other small motor motors which includes motorcycles ("small" being a sporting capacity less than 1 tonne and much less than 9 passengers). Since cars normally decline in price this exemption is genuinely a disadvantage. But the exemption applies even to antique or collectible automobiles, so if they upward push in fee then the exemption is a bonus.
  • Compensation for an occupational injury, or for private injury or illness of oneself or a relative. (However, reimbursement for breach of agreement is issue to CGT.)
  • Life insurance policies surrendered or offered via the original holder. Such profits are as a substitute taxed as everyday profits (whilst held for much less than 10 years). A third birthday celebration who buys the sort of policy will be challenge to CGT as on an normal investment.
  • Winnings or losses from gambling (which might be additionally free of earnings tax).
  • Bonds and notes bought at a discount (including zero-coupon bonds) and "traditional securities" (sure hobby bearing notes convertible to shares). Gains and losses from those are regular taxable profits.
  • Medals and decorations for bravery and valour, provided they're acquired for no (financial) cost.
  • Shares in a pooled development fund, that is a unique structure with regulations facilitating challenge financing. Certain different eligible venture capital investments are also exempt from CGT.

For more information on online tax return 2020, Tax Return 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Deductions

When completing your tax return, you’re entitled to say deductions for some prices, most of which might be without delay associated with incomes your income.

Work-associated costs

To declare a work-associated deduction:

  • you need to have spent the money your self and weren't reimbursed
  • it should without delay relate to earning your income
  • you ought to have a report to show it.

If the rate turned into for both work and personal purposes, you could best declare a deduction for the work-associated portion. Work fees reimbursed to you by your agency are not deductible.

We can seek facts from your enterprise if we think you have got claimed a deduction for an expense that you have already been reimbursed for.

You can be able to claim a deduction for costs that without delay relate on your work, along with:

  • Vehicle and travel fees
  • Clothing, laundry and dry-cleaning expenses
  • Home office prices
  • Self-education prices
  • Tools, equipment and other assets
  • Other work-related deductions

Employees (consisting of casuals) can claim work-related expenses in the  economic  year  they’re  incurred. This is the case even if you begin employment in June however don’t get hold of  income until the next monetary year, you could declare deductions for work-associated expenses incurred in June.

If you employ a person to assist you on your employment, usually you can’t claim a deduction for using that person.

For more information on online tax return 2020, Tax Return 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Vehicle Expenses For Claiming Deductions

Vehicle expenses are a much regulated area for claiming deductions, so having an understanding of what you can claim is crucial in obtaining the correct deduction. Most of us rely on our cars daily in our working lives and, as we all know, cars can be expensive.  Fortunately, tax deductions are claimable on your car-related expenses if you use your own car, or a car you hire or lease, for work purposes.

To be eligible to claim genuine car expenses, the first step is to work out and record how many of the kilometres travelled are business kilometres. After you have that checked off there are three main methods to choose from with the choice up to you with which one you choose. You may choose the one that gains you the largest deduction provided that you have backed up evidence if the Tax office requests it from you.

The three main options to determine
car expense deductions are:

  1. cents per kilometre
  2. 12% of original value
  3. The logbook method.

Method 1:
Cents per kilometre

The cents per kilometre method is
the most common method used and can be used to claim up to a maximum of 5,000
business kilometres per year. The cents per kilometre method allows you to
calculate deductions based on a cent-per-kilometre rate, which depends on your
car’s engine capacity. Under this method you do not need written evidence but
you may need to be able to show how you estimated your business kilometres. A
typical example is where a trade’s person transports bulky tools and equipment
to a work site. The rates that apply for the 2013-2014 period are shown below:

Rates per business kilometre
Engine capacity Cents per kilometre
Ordinary engine Rotary engine
1.6 litre (1,600cc) or less 0.8 litre (800cc) or less 65 cents
1.601-2.6 litre (1,601-2,600cc) 0.801-1.3 litre (801-1,300cc) 76 cents
2.601 litre (2,601cc) and over 1.301 litre (1,301cc) and over 77 cents

Method 2:
12% of original value

The 12% of original value method
takes that percentage of your car’s initial value as the claimable amount.
 An advantage of this method is you can use this method if you used your
car to travel more than 5,000 business kilometres in the financial year. If you
bought the car, you can claim 12% of the cost. If you leased the car, you can
claim 12% of its market value at the time that you first leased it.

Cost of vehicle when purchase:
$25000

Deduction to claim in tax return:
$25000 x .12 = $3000

You do not need written evidence to
use this method but you may need to be able to show how you worked out your
business kilometres.

Method 3:
The log book method

Using the logbook method, you work
out the business or work related usage percentage of your car. This percentage
is then applied to claiming all running costs of the car.

You can use this method if:

  • you have a logbook that has been sustained for a minimum of 12 weeks;
  • your logbook is updated every 5 years
  • you have details of the kilometres you have travelled for the logbook period;
  • you have recorded the odometer reading on 30 June (without this, the ATO will refuse your claim).

Keeping a logbook allows you to
claim the maximum car deductions, as you can claim all car-related expenses if
you have records to verify those expenses.

Records required include:

  1. a logbook
  2. odometer records, and
  3. Written evidence for all your car expenses except fuel and oil costs. For example: registration, repairs, insurance and interest)

A logbook is valid for five years
providing it represents current usage patterns, must record at least 12
continuous weeks and must contain the following information:

  • when the logbook period begins and ends
  • the car’s odometer readings at the start and end of the logbook period
  • the number of kilometres travelled for work activities based on journeys recorded in the logbook.
  • the business use percentage for the logbook period.
  • the total number of kilometres that the car travelled during the logbook period.

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 . For more information please contact us at 1300768284 or you can email us atenquiry@taxrefundonspot.com.au

Planning on Developing Property?

Did you know that if you build and sell new residential premises you pay GST on the sale? And you can generally claim GST credits for your construction costs and purchases related to the sale.

We are identifying and contacting developers early on in the planning process to help you understand your GST entitlements and responsibilities.

When a new development starts we sometimes verify significant refund claims. We may do this if you:

  • lodge a BAS without reporting property transactions, or
  • have an outstanding BAS.

If you haven’t lodged your BAS we’ll remind you so you don’t get behind. When we do this we can assist you with any questions you may have.

If you need advice from the ATO about the tax treatment of your development you can lodge a request for a private binding ruling.

Property development, building and renovating

If you’re renovating one or more properties you need to work out if you are a personal property investor, engaged in a profit-making activity of property renovations, or carrying on a business of renovating properties.

If you build new residential premises for sale, you’re liable for GST on the sale, and you can generally claim GST credits for your construction costs and purchases related to the sale.

Register of Private Binding Rulings

We publish edited versions of written binding advice in the Register of Private Binding Rulings.

This enhances the integrity and transparency of the private ruling system and confirms for the recipient that it is official ATO advice. The advice is edited to protect the secrecy and privacy of the applicant.

Status of versions published in the Register

The edited versions of written binding advice published in the Register can’t be relied on by taxpayers or their advisers in any way. They can’t be relied upon as precedent or used for determining how the ATO will apply the law. The records in this Register are not binding and provide no protection.

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 or you can email us at enquiry@taxrefundonspot.com.au

How to Hit Your First Tax Return Deadline

There’s nothing like a deadline to inspire action. So if you’re preparing to lodge your first tax return online, here’s yours: October 31.That’s the date you’ll need to have the whole kit and caboodle sorted if you’re doing it yourself.

Figure out if you need to lodge

It is important to check, because even if you have a casual, after-school job you may not need to lodge a return,” says Australian Tax Office assistant commissioner Graham Whyte.

“For example, if you earned below the tax-free threshold and didn’t have any tax taken out by your employer throughout the year.”

If it turns out you don’t need to lodge a return, you’ll just need to fill out a non-lodgment advice form via the myGov website.

However, if your boss has been deducting tax from your wages, and you’ve earn less than $18,200 over the year, lodge a return as soon as you can. You should get your refund in 12 days or less.

Lodging online

The ATO has two different options. For straightforward returns, use MyTax on your tablet, smartphone or computer.

MyTax automatically fills out tax returns with information provided by employers, banks, government agencies and others. Just double-check the pre-filled information and add any missing details.

For more complex tax scenarios, E-tax is your best bet, and must be accessed online via a PC or Mac.

Creating your online account

If it’s your first time, you’ll need to create an online myGov account. Have your birth certificate, passport or citizenship certificate handy, and follow the steps.

Claim all you can

Self-preparers need to remember three golden rules, Whyte says.

“To get a deduction for a work-related expense you must have spent the money yourself, it must be related to your job and not a private expense and in most cases you must have a record to prove it.

“If you keep that in mind you can’t go wrong.”

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 . For more information please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Federal Budget 2019 -Tax Refund On Spot

Australia’s 2019 Federal Budget has been unveiled. The key features of this year’s Budget were tax cuts and infrastructure spending with the theme of “A stronger economy and a secure future. Here is the people who will get benefit from federal budget 2019 are:
Succeeding generations – The budget predict a return to surplus of $7.1 billion by 2019-20, after more than a decade of deficits since the global financial crisis.
Individual taxpayers – The budget promises a $302 billion package of personal tax cuts to be rolled out over the next decade.
Middle and low-income earners – Immediate tax relief for low- and middle income earners of up to $1,080 for singles or up to $2,160 for dual income families to ease the cost of living.
Small business – The small business instant asset write-off threshold will be lifted to $30 000 and expanded to include businesses with a $50 million turn over. This change applies from 7:30 AEDT on Tuesday night to June 30, 2020.Small business tax cut – For businesses with a turnover of less than $50 million a year their tax rate will be lowered to 25 per cent by 2021-22.
Infrastructure – The budget includes a record $100 billion in funding for transportation around the country over the next decade.
Patients – Extra $7.7 billion over three years to 2022-23 for better access to MRI scans for patients with breast cancer, and $1.4 billion over five years from 2017-18 for new Pharmaceutical Benefits Scheme listings, including medicines to treat spinal muscular atrophy, breast cancer, refractory multiple myeloma, relapsing-remitting multiple sclerosis and a new medicine to prevent HIV.
Medical research future fund – $ 5 billion will be granted to the fund, including $614 million for rare cancers and diseases, $220 million for cardiovascular health, $605 million for clinical infrastructure and $150 million for stem cell research.

Mental health – $737 million has been included in budget over seven years to deliver more services for people living with mental illness, including $461 million for youth mental health and suicide prevention.
Drug addicts and their families – Through it $337 million drug strategy, the Government is hoping to target the harmful effects of ice, alcohol, tobacco and opioids by increasing access to services outside metropolitan areas, funding local family drug support services and include measures to target opioid use.
Parents/children – Preschool education will get a $453 million boost for the 2020 school year.Regional students – $93.7 million will be granted over four years for scholarships to attend regional universities or vocational education.
Regulators – Gain $600 million in funding for the banking royal commission fallout.

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 .

Approaches to Use Your Tax Refund

The end of the financial year implies that numerous Australians will get themselves a couple of thousand dollars wealthier on account of a tax refund. As indicated by the ATO, 77% of taxpayers got an expense form in the 2013/14 money related year with a normal refund amount of $3,630.

A tax refund can give a convenient chance to get your accounts all together, an opportunity to go overboard on something you’ve needed or find something new. The trap is in discovering the right harmony between these contending urges so you don’t feel lament once the cash is spent.

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 .

Leaving the Workforce

For people who are retiring, there are a variety of options for making the change.

Under the change to retirement rules, if you have reached your preservation age you may be capable to decrease your working hours without reducing your income. You can do this by topping up your part-time income with a regular ‘income stream’ from your super savings. If you are over 60 years old, this income stream may be tax free.

On the other hand, you must be alert of the impact this can have on you and your situation. ATO recommends you see a financial adviser, accountant or your tax agent to help you make a decision if this option is right for you.

Employers still need to make essential super guarantee contributions for all their qualified employees – including people who are making the transition to giving up work.

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.

When you Can Claim a GST Credit

You must be registered for GST to claim GST credits.

You can maintain a credit for any GST included in the price you pay for things that you use in your business. This is called a GST credit (or input-tax credit, a credit for the tax included in the price of your business inputs).

You claim GST credits in your activity statement.

You can claim GST credits if the following four conditions apply:

  • you aim to use your purchase solely or partly in carrying on your business and the purchase does not communicate to making input-taxed supplies
  • the purchase price included GST
  • you provide, or are liable to provide, payment for the item you purchased
  • You have a tax invoice from your supplier (for purchases more than $82.50).

You cannot claim a GST credit:

  • without a valid tax invoice
  • for purchases that do not have GST in the price
  • for wages you pay to staff (there is no GST on wages)
  • For motor vehicles priced above a certain limit.

Goods and services that don’t have GST in their price include:

  • GST-free items (such as basic foods)
  • Input-taxed items (such as bank fees and loan interest)
  • Purchases from a business that is not registered for GST (and therefore cannot charge GST).

When you can’t claim GST credit

You also cannot maintain GST credits for the following, even if GST is included in the price:

  • purchases you intend to use for private or domestic purposes
  • purchases you intend to use to make input-taxed supplies, such as those associated with providing residential accommodation
  • some purchases that you can’t claim as an income tax deduction, such as entertainment expenses
  • Land purchases under the margin scheme.

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.

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.