GENERAL Income Tax QUESTIONS

If you had tax taken from any income you received during the financial year, you need to lodge a tax return. 

However, there are exceptions based on  income and expenses. 

Your best bet is to come in and have a chat with us and we can talk you through it.

Generally no. Unless, you are a tradesperson or similar occupation.

Carrying bulky tools or equipment (such as an extension ladder or cello) that your employer requires you to use for work and you can't leave at work will allow you to claim these expenses. 

Motor Vehicle can be claimed in the following however;- 

• carry bulky tools or equipment (such as an extension ladder or cello) that your employer requires you to use for work and you can't leave at work
• attend conferences or meetings
• deliver items or collect supplies
• travel between two separate places of employment, but not if one of the places is your home (for example, when you have a second job)
• travel from your normal workplace to an alternative workplace that is not a regular workplace back to your normal workplace or directly home
• travel from your normal workplace or your home to an alternative workplace that is not a regular workplace – for example, a client’s premises
• perform itinerant work.

To claim motor vehicle there are two methods. The cents per kilometre which you can only claim max 5000km per car, the rate being 68c for the 2018-2019 Financial year. The second method is a log book method, which is generally used for use of motor vehicle in excess of 5000km,  to work out the business use percentage you are require to record for a minimum of 12 weeks. 

You are able to claim expenditure incurred in replacing, insuring and repairing tools of trade that you use for earning your income. If the cost of any item is more than $300, it will have to be depreciated (i.e. claimed over its effective life). The amount you can claim will depend on what  receipts you have kept and to what extent you use it for income producing purposes. 

If you are in the situation where you are wondering what you can claim without receipts, you can claim less than $300 without proof of purchase.

Expenditure on personal grooming and haircuts are generally not deductible. There are exceptions for some taxpayers involved in the performing arts field.

No. Neither expenses are claimable through the tax office, however taxpayers may be able to claim the Child Care Tax Rebate (CCTR) through the Family Assistance Office.

Evidence should be kept for five years from the date of lodgement of the tax return in which the claims are made. If you are depreciating an asset the receipt should be kept until the item is fully depreciated (even if over 5 years).

Yes, you should do you tax return together. You will be required to input data into your tax return of your spouse's income etc. 

Yes, this can alter your result. I can affect Medicare Levy, Medicare Levy Surcharge, Private Health Excess, Family Tax Benefit entitlements and Invalid/Carer Offset.

In some cases, yes. Depending on the prior circumstances, such as investments or if they have previously lodged a tax return. A date of death may be required. 

Yes, in most cases you should only claim the "Tax Free Threshold" in your higher income employment. therefore when filling out the Tax File Declaration form- you should not claim the tax free threshold. 

Although with the above, in some cases you may be caught in an  unintentional tax trap as a result of the tax free threshold. The problem occurs even if the taxpayer and the employers do  the right thing – as determined by ATO tax PAYG scales. The first job  attracts the tax-free threshold while second and subsequent jobs are  taxed in line with the progressive tax tables supplied by the ATO. It  causes taxpayers to be, in effect, under-taxed on their ordinary  earnings, which can result in a tax bill at the end of the financial  year. 

It is best to check your total earnings and work out whether your secondary job may require further tax taken out. Try this calculator to help determine whether you are paying enough tax. 

You cannot claim a deduction for this because it is not a donation to  the charity; rather you are receiving something for your money. Buying  an item from a charity does not make your purchase tax deductible. The  same applies to the purchase of raffle tickets. Only donations to  registered charities are tax deductible. 

There is Medicare Levy and Medicare Levy Surcharge.

Medicare Levy is a levy that once you are earning a certain amount you will pay, in some cases low family income, pensioners are entitled to a reduction.   

In 2017–18 you do not have to pay the Medicare levy if your  taxable income is equal to or less than $21,980 ($34,758 for seniors and  pensioners entitled to the seniors and pensioners tax offset).

You will pay only part of the Medicare levy if your taxable  income is between $21,980 and $27,475 ($34,758 and $43,447 for seniors  and pensioners entitled to the seniors and pensioners tax offset).

Medicare Levy Surcharge is levied on Australian taxpayers who do not have an appropriate level of private hospital insurance and who  earn above a certain income.  The MLS is payable in addition to the Medicare levy.  If you want to avoid MLS if your income is above $90,000 for singles and $180,000 for families, you will be required to organise Private Health.  Please note that the income includes your reportable fringe benefits (on your PAYG), Salary sacrifice of Super and rental losses- these are all added back for this purpose.