Personal Tax Information

Maneuvering through the maze of the Australian taxation system can be a daunting thing for any person. No wonder over 71% of individual tax payers use registered tax agents!

Ultimately, you don’t want to be paying more tax than you are required, and you don’t want to fall foul of the prevailing auditing system by making incorrect claims.

Below you will find information, news and resources relating to personal tax rates, thresholds, deductions and offsets.

Stay alert for scams and fraud

The Australian Taxation Office (ATO) is committed to educating taxpayers on how to protect themselves against tax scams and identity theft. It says that up to the end of last financial year, $2.7 million was handed over to fraudsters, with about 2,500 individuals providing some sort of personal information to scammers, including tax file numbers. […]

Taxation of foreign income derived by Australian residents

Under Australia’s taxation regime, resident taxpayers are subject to income tax on both income derived in Australia and on foreign sourced income. As a general rule, where foreign income is derived by an Australian resident, the gross amount (including any foreign tax paid on the income) must be included as assessable income. A foreign income […]

ATO can increase (or reduce) its penalties

The ATO says its base tax penalty amount may be increased or reduced. The base penalty amount may be increased where the taxpayer hinders the ATO, but it also may be reduced in the following circumstances. Voluntary disclosure The voluntary disclosure to the Commissioner of a tax shortfall will result in a reduction of the […]

Do you need to lodge your tax return early?

If you are planning to permanently move out of the country before the end of this financial year, you may be able to have your tax return lodged early. Generally, the ATO only accepts early lodgement of individual tax returns in certain circumstances. If you are a resident of Australia for tax purposes, returns lodged […]

Travel allowances and proper use of the exception to substantiate claims

A travel allowance is a payment made to employees to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties. In most circumstances, when claiming other deductions, you will be expected to be able to substantiate the expense being claimed with documentary […]

Can you claim the cost of travelling to this office?

Tax time has arrived, and if you haven’t had us lodge your return yet, here is another deduction tip — should your circumstances allow. (If your return has already been lodged, then this could be a handy tip to file away for next income year.) The ATO recently issued what it calls a “tax determination” […]

Substantiation for mobile, home phone and internet costs

The ATO has issued guidance on making claims for mobile phone use as well as home phone and internet expenses, and says that if you use any of these for work purposes you should be able to claim a deduction if there are records to support claims. But the ATO points out that use for […]

Penalty unit increase: 30 more reasons to make sure your tax outcome is right

A piece of legislation that recently made its way through Parliament means that come July 1, misdemeanors committed by errant taxpayers will become a lot more costly. Penalty units, which are currently pegged at $180 per unit, are set to increase by a little less than 17% (16.6666%) on July 1, 2017. The legislation, the […]

Who is assessable on interest income?

It is a fairly well-established and welcome act for an aunt or uncle or of course a parent to start a savings account for a new addition to the next generation. It is not so common however, among the warm and generous emotions that accompany such a gift to factor in the taxation obligations that […]

Are personal carer travel costs claimable? It depends

A recent court decision, and subsequent appeal, has ramifications for taxpayers with disabilities, and who are in need of a personal carer. The decision centres around what is or is not acceptable as a tax deduction in relation to the costs that arise with regard to that carer under certain conditions. The circumstances of the […]