Australian tax Office places a very high emphasis to ensure you have the right records for tax purposes, when lodging and preparing tax returns. Record keeping involves recording transactions, and keeping relevant receipts to substantiate all the expense claims.

Every year a lot of people miss out on claiming a significant number of tax deductions because they failed to keep a proper record of their expenses. tax deductions

Some of the records that you can keep to ensure you claim all the possible deductions are:

  • Invoices for expenses related to income producing activities such as uniform purchase receipt, fuel receipt, purchase of tools, union fees etc.
  • Telephone bills if you use your personal phone for work.
  • When an asset has been acquired or disposed off (i.e. shares, property, land etc.).
  • Any tax deductible gifts, donations and contributions.
  • Medical Expenses such as specialists invoices, prescription drugs bills, hearing aid bills etc.
  • Details of self-education expenses related to your current occupation.
  • Travel and transportation for work purposes including a log book.
  • If you are travelling for work purpose, accommodation and meals expenses, train/taxi/bus tickets.
  • Parking stubs.
  • Toll Invoices for work travel.

If you’re not sure whether or not you should keep a record of something, keep it – you can consult your accountant or tax agent at tax time.

Unsure of what kind of records you should be keeping for your tax return? Give BookSmart Accountants Cranbourne a call today on 1300 300 106 to find out.

Are you looking for a tax agent who provides cheap tax returns; however it is not necessary that the tax agent providing cheap tax returns will ensure you get all the possible Deductions.

Most individuals these days, when claiming for tax deductions, look no further than general work-related deductions. However, when completing your tax return, you’re entitled to claim deductions for some expenses as long as they are allowable and relevant to your profession.

Some of the expenses individuals incur while doing their job, as well as bank fees, charity donations and clothing expenses may be able to be claimed. Taking advantage of the deductions available for claim can be a straightforward and simple way to reduce your taxable income. You subtract these allowable deductions from your total income to arrive at your taxable income – henceforth; you only pay tax on your taxable income.

Having said that, there are certain rules set out by the ATO for claiming a deduction: Accountant

  • You may have to provide proof for your claims with written evidence.
  • You must claim the deduction in the same income year that you made the purchase;
  • You can’t claim an expense that you have been, or will be, repaying for; and

Furthermore, to make a deductions claim, the purchases you make must be during the course of your taxable income (as stated above) and it must not be private, domestic or capital expense.

You might ask here, “What if the expense was both work-related and private or domestic?” According to ATO, if that is the case then you can only claim a deduction for the work-related portion of that expense.

It should also be known that there are a couple of limitations that apply when claiming deductions. You can’t claim a deduction for:

  1. Fines imposed under a law of the Commonwealth, a state, a territory, a foreign country, or by a court. Examples of this include speeding tickets, parking fines etc.
  2. Gains or losses you incur by earning monies from illegal activities

Here is a list of common expenses that may be able to be claimed, depending on your circumstances:

  • Vehicle and travel expenses
  • Clothing, laundry and dry cleaning expenses
  • Gifts and donations
  • Home office expenses
  • Interest, dividend and other investment
  • Self-education expenses
  • Tools, equipment and other assets
  • Formal education courses provided by professional associations
  • Union fees
  • Overtime meals
  • Protective items such as sunscreen and sunglasses
  • Computers and software

There are just a few areas from which you might be eligible to claim deductions. For more information and to see how much you can reduce your taxable income, contact one of our expert tax agents and accountants in Hallam, Lyndhurst,Lynbrook,Cranbourne today on 1300 300 106 to find out what you can claim on your tax returns.

Call Tax Accountants Cranbourne at 1300 300 106 for further information.

Capital Gain Tax is a tax applicable on the assets, which was acquired on or after 20th September 1985.

A capital gain or loss is the difference between cost of getting an asset and funds received on disposed.

If you made a capital loss in financial year then you cannot claim against income. However, it can be claimed to reduce a capital gain made in the same financial year. If capital loss is greater than capital gain then capital loss is carried forward for the future years and will be deducted against capital gain.

Common example of CGT is real estate or shares from where taxpayer makes capital gain or loss. CGT is also applicable on intangible assets such as business goodwill.

There are some assets that are exempted from CGT examples are as below

Personal home
Personal Car
Personal Furniture
CGT is also does not apply to depreciable assets used solely for taxable purposes such as business equipment.

Small businesses do get concessions when they sell the assets that they hold for more than 1 year. They get 50% discount and same implies to individuals as well.

Call Tax Accountants Lynbrook at 1300 300 106 for further information.

BookSmart Accountants are registered Tax Agents and are experts in overdue income tax returns regardless of how late you are. We will assist you keep your tax returns up to date as the Australian Tax Office can issue FINES and PENALTIES for late lodgement.

It will be our responsibility to complete your return correctly without any errors. Most typical mistake people make is that they don't know how to prepare their own records and thus waste significant amount of time trying to compile the data. We will assist you with fast ways to compile your data correctly thus saving you time and money.

We will give you tips to ensure you keep up to date in future and with you being our customer will always be waiving a red flag is you are late with your lodgement with our reminders.

“Overdue tax returns” is not the type of problem which will disappear however the good thing is that we can help you sort out this problem. All you have to do is pick up your phone and call us today to book an appointment to pass on your tax worry to us.

Managing your invoicing, bill payments and ATO obligations is easier when you have a professional bookkeeper working with your business.

Once you appoint us as your tax agents, the tax office will not bother you as we will act as a cushion between you and the tax office and make sure you stay out of trouble with the tax office.

Call Tax Accountants Cranbourne at 1300 300 106 for further information.

Author: Sunny Kaur, BookSmart Accountants

The super co-contribution is intended to aid eligible people to increase their retirement savings.

If you are considered as low or middle income earner and make self super contribution then Government will also make super contribution of maximum of $500 (2013/14).

The Government contribution depends on how much you contribute to your super fund. You don’t need to apply for Government co-contribution. Government has an eligibility criteria based on the information you provide in your tax return.

Eligibility criteria is as below:

• If you make one or more eligible personal super contribution to your super fund in the financial year.
• You must be below the high income threshold i.e. $48,516 for 2013/14.
• Your 10% or more of your earning comes from employment related activities or carrying on a business, or combination of both.
• You should not have Temporary visa at any time during financial year (New Zealand Citizens are eligible)
• Your fund should have TFN before you make personal co-contribution to your super fund.

You will not be allowed to any Government super co-contribution if you choose to claim your personal contribution as tax deduction in your tax return.

You will be able to claim a tax deduction for personal contribution if you are not an employee or small proportion of your income from the employment.

This include income from

• Personal business
• Investments
• Government pension and allowances
• Super
• Foreign source income

Call Tax Accountants Cranbourne at 1300 300 106 for further information.

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