Get tax time ready!

Everyone wants a tax refund so what you do in the next couple of weeks will affect the tax you will pay and any possibility of receiving a tax refund.

Here’s what you need to do to get tax time ready:

  1. Collate all your income records. This includes the amount of money you received from your employer or sales (if you are self-employed), super or pension.
  2. Ensure you have all your bank statements ready to show the interest income earned and the charges paid.
  3. Collect all dividend and distribution records if you have shares.
  4. Gather together all records of investments purchased or sold to calculate any capital gains or losses.
  5. If you have investment properties, organise your rental income statements and any expenses incurred (including interest paid on the loan).
  6. You will also need your private health insurance policy details.
  7. If you earn income overseas or participate in the shared economy e.g. Uber or Airbnb, you will need to report any income earned throughout the past financial year.

Working out your deductions – this is where we can help you.

If you are self-employed or an employee, there may be a number of expenses you can claim as a tax deduction.

For owners of investment properties, you can claim expenses such as:

  • Agent fees and charges
  • Maintenance and repairs
  • Insurance
  • Rates and strata fees
  • Pest control
  • Advertising for new tenants etc.

Don’t forget to check your super contributions

If you won’t reach your concessional contributions cap of $25,000 (which includes your employer’s contributions and any salary sacrifice amounts), consider topping up the shortfall. Personal contributions can be claimed as a tax deduction.

But don’t wait until the last minute to make this payment as processing times can vary and may fall into next financial year.

If you earn less than $52,697, take advantage of the government’s co-contribution. It follows a sliding scale depending on your annual income, with the government contributing additional funds to your super policy if you qualify as a low income earner.

Insurance and your super account

From 1 July, your super fund is entitled to cancel your life insurance policy if you fail to make any contributions in the previous 16 months. If you wish to maintain your super insurance cover, you will need to ensure your account remains active. We can help you work out what to do so give us a call.

Whether it’s preparing your tax return and BAS or guiding you through your investment options, we are here to help you.

 

For straight-forward, practical accounting, taxation and financial advice
contact our knowledgeable team at SVA and WPA by calling 02 8850 0388.

Payment Summaries – What employees need to expect

STP or Single Touch Payroll has gradually been rolled out over the past few years. From 1 July, all businesses with a payroll will need to be using STP software.

If your business has not yet adopted STP, you will need to provide all employees with a Payment Summary by 14 July. But this will be the last time you will need to do this. From July 1, all information on an employee’s income, tax and superannuation will be available on the individual’s MyGov account.

If this is the first year your business has adopted STP, you will need to advise your employees that they can access their Income Statement from their MyGov account from 31 July. As the employer, that gives you 31 days to mark their Income Statement as “Tax Ready”.

 

If you are an employer and you have not yet prepared for STP, you need to call us urgently on 02 8850 0388.

Instant Asset Write-off Changes

The recent changes to the Instant Asset Write-off have complicated things for this financial year but for many clients, the changes will provide a great addition to their tax planning strategy. Here are the new rules:

  1. Businesses with a turnover less than $50 million are now included in the Instant Asset Write-off rules.
  2. Assets purchased and installed (or first used) from 7.30pm (AEDT) on 2 April 2019 – 30 June 2019 are included. These assets can be new or used.
  3. A deduction of up to $30,000 for the business portion of each asset qualifies for the Instant Asset Write-off.
  4. Businesses with a turnover under $10 million can also claim a deduction for each asset purchased and used (or installed) within various thresholds. This part is complicated so it’s best to call us for specific advice.

Making the most of the new Instant Asset Write-off changes can form part of a clever tax minimisation strategy – but only if it’s well thought out and funded. So talk to us first.

 

For straight-forward, practical accounting, taxation and financial advice
contact our knowledgeable team at SVA and WPA by calling 02 8850 0388.