Lodging Your Tax Return
For most of us lodgment of our income tax return is not the most favorite pass time, but as a wage earner we all have to take a little time out to organise ourselves to declare all of the income that we have earned over the financial year (you may need to lodge a return even if your income is below the tax free threshhold of $18200 and you paid income tax) less the expenses that can be deductable.
When do I have to lodge my return?
Tax returns need to be completed between the 1st of July and the 31st of October. Extentions are available for taxpayers if they are on an Australian Tax Office list belonging to a Registered Tax Agent, like Absolute Accounting Solutions.
What do I declare as income?
Income is all of the money that you earned with an employer, payments from centrelink, the interest your bank accounts earned, rent earned from and investment property - this includes the shared economy (for example - Air BnB), dividends on shares that you may have. This list is not exhaustive but gives you a good start.
What are my deductable claims?
Deductions can be specific, and highly dependent on your individual circumstances. Receipts will need to be kept and you can only claim what you are entitled to, if you need help call us on 1300 488 330.
Tax return fees are tax deductable and start from $120.00
Absolute Accounting Solutions, also offer a range of services to help small business owners with tax, bookkeeping/accounting services and virtual assistants.
For more information regarding your tax returns call us on: 1300 488 330
2015 Budget - Small Business what a night!
The Treasurer last night announced the expected reduction of the company tax rate of 30% by 1.5% to 28.5%.
Sole traders, partnerships and trusts did not miss out and will enjoy a 5% tax discount, capped at $1000 per person, per year. This will be given as a tax offset at the end of the financial year.
The hugely unexpected announcement for small business with a turnover of less than $2mil, was the $20,000 immediate tax write off for any new purchase of tools or machinery that the small business will make from 7.30pm May 12, 2015 and June 30, 2017.
While this can be a great for the small business that will make a large profit in a specific year, assisting to reduce their
immediate year's taxable profit. The accelerated write off can have implications later in the event that the small business was to sell or dispose of the asset. The small business will have to pay tax on the whole amount of the sale price as it has been written off. The election of whether to use the immediate tax write off, should be applied by a case by case basis discussed with your Accountant.
Capital Gains Tax (CGT) rollover reliefs was only available to sole traders or partnerships that chose to become a company, new changes will allow a small business (that has a turn over of less tha $2mil) to change their legal structure without triggering a CGT liability from 1 July 2016. The Government has recognised that new small businesses may have chosen an initial incorrect structure that may not be appropriate later when the business is established.
As small business was the highlight of last nights Federal budget, it also addressed the complexities individuals have had with business start-ups. The introduction of one website to provide ease for the registration of a business name, application for ABNs and other Government requirements will all in one place, there will also be an immediate deduction for some of the expenses associated with the starting-up a new business these are professional, legal and accounting advice, this is a welcome improvement.