News/Blog
Stay up to date with all our latest news, guidance and regulatory information here. We like to focus on the practical implications of changes to tax, insurance and financial planning legislation as well as offering insights on topical issues relevant to our clients.
LATEST ARTICLES
Coronavirus impact – Government support for businesses is coming
The Federal Government has announced a $17.6 billion economic stimulus package in a bid to keep Australians in jobs as the economy takes a hit from the spread of Coronavirus. This includes tax relief for small businesses, business cash payments, family tax benefits, business investment incentives and money to help keep apprentices in work. Business support It is estimated $6.7 billion of the budget has been earmarked to help businesses weather the storm. Nearly 700,000 small and medium sized businesses across Australia will be eligible to receive up to $25,000 to help pay wages or hire extra staff, based on BAS lodged. However, if you are a sole trader and don’t employ anyone, you won’t receive any cash payments but will have access to business investment incentives. For example, the instant asset write-off threshold will be increasing to $150,000 from $30,000 and it is opening up to businesses with turnovers up to $500 million until 30 June 2020. It is hoped this will encourage businesses to spend on equipment and other investments, as they can claim a tax break for what they spend. The [...]
Individual tax lodgement date deadline approaches
Haven’t done your tax for this financial year ended 30 June 2019? For most, the last date you can lodge your individual tax return through Taxpro Australia is 15 May 2020 without incurring any penalty from the ATO. If you have not lodged your return yet, please contact your Taxpro accountant to book an appointment or to schedule a telephone interview at your earliest convenience. We do become very busy in the lead up to this deadline, so please book in early. We may already have the below documents for your appointment, the only documents we may need from you would-be work-related deductions/ receipts. PAYG payment summaries Bank interest Private health insurance What if I miss the deadline? The ATO may apply a failure to lodge (FTL) on time penalty. While its uncommon for an isolated case, they have increased the number of individual fines in recent years so don’t leave it to the last minute. To schedule an appointment give us a call on 08 9240 7629
Manage your receipts better
The ATO can audit at any time, any year Could you put your hand on a receipt from three years ago to prove a deduction if the ATO asked? Recently, this happened to a client. The ATO contacted us to do a random audit on an individual tax return from the 2017/2018 financial year. Even if the deductions do not amount to a lot in value, the individual has to provide all receipts. For example, this could be for workwear, fuel or computer equipment. We ask all clients to keep receipts for five years, however we know that receipts can get lost, shop receipts can fade over time and it can be a big administrative task if you are asked to provide evidence of deductions from years ago. Receipt management We would advise all our clients to use Receipt Bank, a system that automatically converts all your receipts into data making it easy for you to send your tax information straight to us. You simply have to take a photo of the receipt and upload it – this can by via the Receipt Bank [...]
First Home Loan Deposit Scheme
Interest rates are at a historic low and first-time buyer’s only need 5% deposit – Sounds good, right? The Australian Federal Government launched the first home loan deposit scheme on 1 January 2020. It is administered through the National Housing Finance and Investment Corporation (NHFIC) in partnership with lenders, and there are now 27 lenders part of it. The scheme has been developed to help first-time buyers get on the property ladder, easier and faster. On the surface it looks like a great opportunity. With the first home loan deposit scheme, the buyer may only need 5% of the value of the property, and the Government will underwrite the loan so there is no requirement to have lenders mortgage insurance (LMI). Usually, if your home loan deposit is less than 20%, the lender would require you to pay LMI. It is based on your loan to value ratio and the amount of money you borrow. For example, if you had a $25,000 deposit saved (10%), of a property worth $250,000, the LMI estimate would be around $4,800 up front. Therefore, this new scheme could [...]
Do you own investment property overseas?
It is important you know your tax obligations in Australia! As an Australian resident you are taxed on your Worldwide income, that includes income from any investment property overseas. In recent years, the Australian Tax Office (ATO) has increased its crack down on tax residents that fail to declare income from property overseas. It states that you must include the rental income or property asset sale on your Australian tax return, and it must be converted into Australian dollars. What happens if I sell the overseas property? You may have to pay Capital Gains Tax when you sell the asset. This is the difference between what it cost you to acquire the asset and what you receive when you dispose of it. This could be either a gain or a loss. The ATO states that if you acquired an overseas property before you became an Australian resident, you are taken to have acquired the asset at the time you became a resident. If you are a temporary resident (normally someone on a temporary migration visa) you are not subject to tax on sales of [...]
Did you over-spend at Christmas?
Your tax refund may cover those extra indulgences If you haven’t lodged your individual tax return for the 2018/2019 year yet, then you could be eligible for a tax offset of between $255 and $1080! It’s not very often we can say that your tax return could get you out of a Christmas and New Year debt hangover, but this is thanks to the Government’s $158bn tax cut package for low and middle-income earners. Eligible taxpayers can receive up to an extra $1080 for singles depending on income, or up to $2160 for a couple. Remember though, it is a tax offset, which means it is automatically calculated when you lodge your tax return. So, you may get a larger refund, or a smaller tax bill, but you won't get an extra payment into your bank. To help you work out how much you can expect back, here is a useful tax calculator You have until 15thMay 2020, if filing through Taxpro, to lodge your individual return. If you have any questions, or would like to book your appointment, please give us a call on [...]
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