With Financial Year End Coming up, Do You Have Any Tax or Tax Return Questions I Can Answer for You?

AssociatedLnicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 10:35
Last edited 31/05/2017 - 09:17 by 1 other user

Edit final time:

Started a new thread for this to keep up with everyone's new questions. This is the link…

https://www.ozbargain.com.au/node/309978

Edit again:

Thanks for all the questions once again everyone. We have now reached over 600 comments.

I will do another Q & A in about a month when it is closer to tax time.

Hope you have all got a bit of extra general tax knowledge. ]]

If your inquiry is urgent then you can PM me.

Goodbye for now and see you in about a month!

Hi All,

I just thought with financial year end coming up in just over a month's time, many people have tax and specifically tax return related questions.

I am a tax professional and I am constantly getting asked similar questions coming up to tax time by family, friends and new clients. So I thought that I could be of some use and answer any tax questions you may have.

Disclaimer: Any advice or answers given will be general in nature and you may need to speak to a tax adviser for more personalised advice.

Ok, start posting your questions :)

Edit: Thanks for all the questions. I am trying to get to everyone as soon as I can. If I miss your question please send me a PM or ask again so that I can see it. There are so many questions I am sure i've missed a few.

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        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:02

          Not necessarily, they can be deemed running expenses.

          I would wait until you earn some income then claim these deductions against that income :)

        • fukunaga on 22/05/2017 - 16:17

          @nicolemcmilllon: Thank you - that makes sense :) My only concern is that these expenses will be incurred in this financial year, as opposed to income which will come in the next financial year - am I correct? Or will I be claiming the part of the expense for the next financial year (eg. 12 month web hosting but I can claim 11 months paid for + 1 extra month assuming it is a running cost)? Sorry for the questions!

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 22:23

          @kuroimisa:

          You include the deductions in your tax return this year but they just sort of sit there waiting for the income next year. It's called deferred non commercial losses.

        • fukunaga on 23/05/2017 - 10:01
          +1

          @nicolemcmilllon: Thank you so much, Nicole!

  • tankcat on 22/05/2017 - 15:51

    I have a rental property which i have not declared , i am renting it out now but if i declared it will i get into trouble

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 15:52

      When did you start renting it out?

      Regardless if you have not declared it in prior years, you should start declaring it from now on.

      If your rental property was purchased using a loan, it might be negatively geared meaning you would have been better off declaring it over the years and getting a deduction.

      Do your rental expenses, including interest, exceed your rental income?

      • tankcat on 22/05/2017 - 15:59

        The rental income exceeds the expenses but thats because the loan is only interest only atm , will i have to pay more if thats the case?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:01

          You will have to pay tax on the net rental income. You should have been declaring it from the beginning as the ATO are able to data match with the Office of State Revenue to see if you have properties in your name.

          How many years have you had the property for?

        • dasher86 on 23/05/2017 - 08:48
          +1

          have you taken into account depreciation of the property in the expenses? or are you wanting to leverage the property as positively geared?

  • OG Puppy Banana on 22/05/2017 - 15:52

    I am a Senior Business Analyst (FT job) and a niche SME consultant (ABN freelance side business).

    I am about to commence an MBA part-time which I will pay off by myself. Fees are approximately $36k per financial year.

    Do I have any standing to deduct any of the tuition fees and/or costs of education (books, IT, travel, conferences) on tax.

    The benefit is that it supports my career projection and gives me increased skills in side business and day job.

    Cheers,

    Ash

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 15:55
      +1

      What is your annual income from your side business?

      • OG Puppy Banana on 22/05/2017 - 16:47

        Very low compared to full time work income.

        Last three years of side business:

        2014/2015 - 7K
        2015/16 - 15K
        2016/17 - No income (Stopped doing billable work to focus on start up (which was a money draining dud with a lot of good learning))

        My day job is gross 135k inc super.

        Edit: I'm 25 if that makes any iota of a difference

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 22:25

          If you can argue that the course is for your current job title and not for your next job you may be able to claim the tuition fees. Don't bother relating it to your side businesses as there is no income.

    • cintamami on 22/05/2017 - 16:01
      +1

      Yes you can.

      However there was a case where only some of the courses were deemed to be deductible due to the nature of the claimant's work.

      E.g. if you happened to take an art subject for the electives, those electives won't be deductible to you.

  • junj on 22/05/2017 - 15:53

    I work full time in the architectural industry, and spent $1500 for courses to help me with getting registered as an architect, how much of that can I claim?

    Thanks,

    • cintamami on 22/05/2017 - 15:56

      $1,500 - $250 = $1,250.

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 15:59
        +1

        Usually an accountant will account for $250 being the cost of travel to and from the education courses which cancels out the $250 you have to reduce from your deduction effectively ensuring you claim 100% of expenses incurred ;)

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 15:58
      +2

      You will be able to claim the entire $1,500 if you satisfy one of the following conditions in incurring the expense:

      1.You are upgrading your qualifications for your current employment – for example, upgrading from a Bachelor qualification to a Masters qualification

      1. You are improving specific skills or knowledge used in your current employment – for example, a course that will allow you to operate more machinery at work

      2. You can show that at the time you were working and studying, your course led, or was likely to lead, to an increase in employment income – for example, a teacher who will automatically get a pay increase as a result of completing the course.

      You will satisfy one of the above and you will be entitled to the full deduction as long as your employer did not reimburse you for the courses.

  • cainen on 22/05/2017 - 16:01

    Hello,

    My employer is going to be giving me Aud$20k worth of company shares as a bonus. The shares vest over 4 years (25% per year) and are listed on the NASDAQ. What are the tax implications of this in terms of both declared income and capital gains?

    Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:05

      Is your employer going to provide this to you in terms of a formal Employee Share Scheme or are they simply giving you a bonus?

      • cainen on 22/05/2017 - 16:09

        I believe it will be part of an ESS.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:11

          You will have to see if it is a taxed upfront scheme or a deferred tax scheme.

  • kati on 22/05/2017 - 16:05

    In last year's tax return, I had a -$5k loss due to investment properties. ie. IP income of +$45k, IP expenses of -$50k.

    I know there's multiple components for the family tax benefit. Focusing solely on the part that relates to my annual adjusted taxable income, if I did not have a job or other sources of income, what would my income be?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:09

      If your allowable deductions are greater than your gross income, that is if you make a loss, your taxable income is taken to be nil for the purpose of calculating your adjusted taxable income.

      • kati on 22/05/2017 - 16:10
        +1

        Thank you very much Nicole. I have always wondered about this.

  • Marrk on 22/05/2017 - 16:10

    I am a sole trader and will likely owe far more than I have in my bank account at tax time, what are the ATO's repayment plans like for individuals / sole traders?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:18

      How much tax do you estimate you will be paying. Usually a 6 month repayment plan shouldn't be too hard for me to negotiate for my clients.

  • SkMed on 22/05/2017 - 16:10

    I bought a second hand Macbook Air which I use 99 percent for work. Can I claim this?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:15

      Yes, you can depreciate the Mac at 66% of the cost each year pro rata from the date you purchased it.

      • SkMed on 22/05/2017 - 17:31

        Even when I paid cash, second hand with no proof of purchase?

  • peterpeterpumpkin on 22/05/2017 - 16:11

    Thanks again Nicole.

    The ATO phone guy seemed to suggest that if you have any side income from odd jobs on Gumtree or Airtasker where no ABN was quoted then you should fill in a Statutory Declaration. Does that sound about right? My friend wants to do the right thing but also have no governmental demons haunting her in the future.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:16

      How much is the income from side jobs. Is it less than $1000 per year?

      • peterpeterpumpkin on 22/05/2017 - 18:11

        Unfortunately I don't have that info at hand right now. There's a backlog of a few years to do (if that's relevant to the rules or actions) but one of the years is possibly above $1000 (maybe $2500 at worst but probably $1500 or less).

  • Kiwiboy86 on 22/05/2017 - 16:15

    Hi! Thanks for the generous post OP.

    I am a uni student here in Australia with no income. However, if I have stocks in American markets (about $10k AUD), will I have to pay tax to either ATO or elsewhere overseas? If so, are there anyways reduce the amount? This is assuming I make roughly $1,000 per year in profits from the stock market.

    Cheers!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:17
      +1

      As an Australian resident you will have to pay tax on any capital gains on your shares.

      The tax free threshold is $18,200 and as long as you do not make a gain each year of more than that, you will not be paying any tax.

      • No ONE on 22/05/2017 - 21:20

        Do you mean Australian residence for tax purpose?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 22:25

          Correct

      • Taita on 23/05/2017 - 23:03

        Hubby is working and I am not. He files his tax returns but do I need to declare /file a return for my overseas managed fund even if the return is less than $1000?

        Thanks.

  • skwil8 on 22/05/2017 - 16:31

    Hi,
    Firstly, thanks for such a helpful thread!

    I have an investment property which I solely own and have held since June 2014, I have a depreciation report & claim loan interest paid, landlord insurance & body corp fees against the rental income I earn.
    Am I missing anything?

    Additionally, my partner and I jointly purchased a property in April 2016 which we rented out from May 2016 to October 2016. As of late October / early November 2016 we occupied the property ourselves.
    How do I claim the rental income from the rented period? Is it split 50/50 between my partner & I or can I claim the whole rental income myself?

    We completed renovations to this property in November 2016, because the property was not rented at this time we can't claim the cost of these renovations can we?

    Thanks.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:34

      You are most likely not missing anything as other than depreciation, you will be aware of any other costs you are incurring.

      If you purchased the property jointly with your partner the rental income/expenses will have to be apportioned with the same percentage (i.e 50/50).

      With regards to the renovations, they would most likely be capital anyway and thus you would not be able to depreciate them. However, keep details of these costs as you will add them to the cost of the property when it comes time to work out the capital gains if and when you sell it.

  • majuks on 22/05/2017 - 16:33

    I currently own a PPOR since October, 2016. Did $112,000 renovation on it (ripping out toilets and shower, carpet, repainting and replace solar shower control etc.)
    I have claimed Main residence as concession for a house worth $855k.

    If I decided to rent it to my parents ( who are already living in it) from June, 2017. Should I ?

    a) get a real estate agent to estate what the weekly rental would be and rent it to them at the market price and get rental agreement up
    b) get a tax depreciation surveyor to quantify % of the amount claimed from all the renovations and damaged parts I have replaced

    or wait past October until I can actually rent it out without ? paying extra 7k in stamp duties in QLD ?

  • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:39
    +12

    Firstly your parents gave you life, the least you could do would be to rent it less than the market price! lol

    If the rental income you would receive in the next few months until October is much more than the $7,000 then you can consider renting it. However when you take into account that your parents will have to pay you $7,000 plus the tax that you would pay on that $7,000 just to make up for the $7,000 in stamp duty, it hardly seems worth it. Probably best to wait until October.

    You should also get a depreciation report which will outline all the deductions you will be entitled to.

    Whilst this is a personal and not a professional opinion, you should consider renting to your parents for lower than the market value. You are obviously in a strong financial position :)

    • majuks on 22/05/2017 - 16:44

      Good idea. Although I have given them my credit cards to cover 100% of their daily expenses.

      I was thinking of renting it PPOR to claim back my renovations back early and unlock some capital to buy an IP.
      Guess I will do that in Octobers.

      Thank you very much for the advice.

      • virhlpool on 24/05/2017 - 01:02

        I was thinking of renting it PPOR to claim back my renovations back early and unlock some capital to buy an IP.

        I seem to have not understood this well. Can you please explain this just for my knowledge? How will renting of PPOR help you claim back renovations early? Probably I am missing some taxation rule here.

  • miicah on 22/05/2017 - 16:39

    Is there anything in the tax system I can take advantage of by having a partner (de facto/marriage)? Or is that only an American thing?

    Also we bought a property that we live in, is there any tax deductions for that?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 16:41

      The advantage would be if you were running a business and could employ her as an employee.

      If you are living in the property then there are no deductions as you are not earning any income from it.

  • rissile86 on 22/05/2017 - 16:43

    I have recently started a new business which is in the start up process stil , can I use the 20k small business tax break to offset my other income from my full time job . Ie earnt 80k full time job , 20k on small business start up costs so only pay tax on 60k?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 17:13
      +1

      Long story short, no. Your business losses will not be able to be offset against your other income.

  • dannyeei on 22/05/2017 - 17:01

    Firstly thank you for doing this! In short I worked an internship in Hong Kong over the summer (I'm a student) so I was wondering with tax (as I'm still an Australian resident) do I calculate my earnings based on the exchange rate at the time I earned it or the exchange rate I actually cashed in on? Also I'm moving to America next year, what steps do I need to take to ensure I don't also need to pay tax in Aus

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 17:15
      +1

      If you have the amount u cashed it in on that would be easier as you wouldn't need to do any calculations.

      When you leave Australia. You can prepare a final tax return that financial year on the basis you are not coming back.

  • jaackyy on 22/05/2017 - 17:17

    I am currently a full time uni student, and work on a casual basis whenever I can. I earn about $350 a week. and then a bit more during semester break. On estimate, my total yearly income would be ~$20,000 Max. Which is slightly above the tax free threshold. Is it worth going to an accountant? I don't think I have much I can claim on anyway.. other than the $300 receipt-free stuff etc.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 17:20

      It is not worth going to an accountant if you are comfortable using the mygov system.

      Usually an accountant may only charge u $50 for a simple return like yours so it might be worth it as you won't have the stress of figuring things out yourself.

    • jaackyy on 22/05/2017 - 17:36
      +1

      ah okay, I figured as much. Thanks for taking the time to reply !

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 22:26

        No problem

    • citybargainhunter on 22/05/2017 - 22:18
      +1

      I've always regretted not using an accountant earlier on after I started earning a taxable income, it would have saved myself a lot of money and headache, so my piece of unsolicited advice would be to find a good accountant and start building a good relationship with them and learn as much as possible from him/her, consider it a small worthwhile investment that you'll get back plus more in no time.

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 22:28

        I think some people think that an accountants only job is to get you more money back in tax. In reality you're paying them for peace of mind and taking advantage of their experience to ensure you don't have to stress about your tax.

  • irajohn90 on 22/05/2017 - 17:18

    for self-education expenses related to my current employment, can I claim deductions on HECS?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:13

      You can't claim HELP repayments as a tax deduction.

      • irajohn90 on 22/05/2017 - 21:24

        Is it possible to claim the invoices?

  • iFetch on 22/05/2017 - 17:18

    Any tax implications/options for renting a room or 2 rooms in my PPR? What's the best way to rent 2 rooms out individually from a tax/legal perpective?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 17:22
      +1

      You will have to apportion the capital gains for the rooms when it comes time to sell the house.

      You will also have to declare any rental income in your tax return and can apportionrunning and occupancy expenses to offset some or that income.

  • Elitebhy on 22/05/2017 - 17:25

    I bought a property off the plan a couple of years ago and I will travel interstate to have an inspection prior to settlement, this will just be before the end of the financial year. When would I be able to claim the expenses?

    Edit: developer wants me to purchase blinds, I assume I can only claim this after settlement, how does one go about claiming these type of items?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:12

      You should obtain a depreciation report from a surveyor once the property is ready to be rented out.

      In regards to your travel expenses, as the property is not available for rent you will not be able to claim the deductions.

      You can however include them in the cost of the property when it comes time to work out the capital gains.

  • [Deactivated] on 22/05/2017 - 17:36

    I claimed a lot of leave to be paid out. About 600 hours otherwise I had to take leave. I got taxed a LOT which I expected, around 45%. Will I get at least a good chunk of the extra tax on my refund? I know it's more complicated and that, but I should I expect my tax return to be a fair bit more this year? Thanks in advance.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:04

      Yes you should expect a little bit more back this year.

      Let me know if I can assist you further :)

      • [Deactivated] on 22/05/2017 - 19:30
        +1

        Thanks.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 19:33
          +1

          No problem. Spend it wisely :)

  • AddNinja on 22/05/2017 - 17:44
    +1

    I sold some bitcoins and made a profit. Do I need to claim this as income or pay capital gains?

    • lakes_8 on 22/05/2017 - 22:28
      +1

      capital gains given as bitcoins would be considered an asset

      • AddNinja on 23/05/2017 - 07:12

        Thank you!

  • Iggemo on 22/05/2017 - 17:46

    I have one.

    My wife is an american who has applied for permanent residency here and we are currently awaiting approval (can take up to 18 months). She currently pays tax to California on her passive income (running a website) and the tax intervals are different times to here.

    So, i have nfi if she is meant to be paying tax on passive income to (a) USA, (b) AUS or (c) both? surely it can't be both? Do permanent residents pay tax only when approved or when they applied, and surely u can't be taxed at both ends so any chance of some clarity on that? Thansk !

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:07
      +1

      If your wife is a resident of Australia for tax purposes (and it seems as though she is because she is intending to stay here then she will have to pay tax on income earned worldwide.

      She will receive a tax offset for the tax paid in USA.

      So if she earned $10,000 in USA and paid $3,000 in tax in USA then when she does her Australian tax return she will include the $10,000 in her income and she will receive an offset of $3,000. The offset can only cover the tax on the foreign income.

      Let me know if you want a more detailed explanation.

      • Iggemo on 22/05/2017 - 21:51

        wow, thanks for that info - makes sense that there's an offset, but she won't be happy she'll have to start submitting tax returns here in aus ! oh well !

        thanks again ! : )

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 23:15

          No problem. Let me know if I can be of assistance in preparing and lodging your returns.

  • shortgum on 22/05/2017 - 17:55

    Is it possible to do tax return for yourself? Currently have an accountant, and my tax situation have not change much at all. Have two rental properties, currently studying and not in workforce. so technically claim nothing back and best to think do tax myself save fees

    Our accountant fees have gradually increase good portion every year. can we ask our accountant for a template, then later to fill in the blanks myself?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:02

      Well your accountant won't give you a template if you are going to leave them.

      It takes a fair bit of knowledge to do a tax return for 2 rental properties.

      How much is your accountant charging. It shouldn't be more than $200 each.

    • lainey13 on 23/05/2017 - 00:10

      You know you can claim the cost of the accountant on your return yeah?

  • Briefcase Mong on 22/05/2017 - 17:55

    Can clothing be claimed for a uniform deduction bought from department stores e.g. Myer ? the clothing is worn at work only

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:01

      If it doesn't have your work logo, which obviously it doesn't from Myer, then it must be for safety protection such as hard hat, boots, hazmat suit.

      Sorry, you most likely can't claim your pants/skirt/business shirt

      • Briefcase Mong on 22/05/2017 - 18:14
        +1

        Thanks for the help greatly appreciated :)

  • slipperypete on 22/05/2017 - 17:56

    Hi

    Is it mandatory to do a tax return even if you haven't any declared income?

    I haven't done a return in 5 odd years, prior to that I was living overseas (10 years) and have been living off of income I made during that time.

    Thanks!!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:00

      Haven't you earned any income in the past 5 years? None at all?

      • slipperypete on 22/05/2017 - 18:06

        Actually I had some invested here and was getting $700 a month for a couple of years prior then lost the whole investment $100,000 worth!!!

        I guess I am asking as I was told I didn't need to then I have just been told I should.

        So I want to make sure I am legal…or at least start getting legal. I have cash deposits out of the country in the Middle East and Jersey but all earnt whilst living as non Oz resident

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:11

          Are these cash deposits generating any income.

          You should be fine but I would recommend lodging tax returns going forward as you are an Australian resident.

          Also the ATO does crack down on residents with investments overseas to ensure they are declaring foreign income.

        • slipperypete on 22/05/2017 - 18:14

          @nicolemcmilllon:
          Hey thanks a lot for the advice.
          My accounts aren't generating any relevant income….I'm absolutely lousy when it comes to money stuff. I reckon I will get something done this year.

          Any recommendations for a good tax accountant with knowledge of expat issues that I could use in WA?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:26

          @slipperypete:

          Not in WA sorry, I am in Sydney.

        • JetBombat on 22/05/2017 - 19:30

          @nicolemcmilllon: Could be cheap tickets to WA on this site, plus you might be able to claim it as a business related expense ;)

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 19:35
          +3

          @JetBombat:

          Believe it or not we don't meet any of our clients face to face these days. It is all over email. In the early 90's and 2000s all the clients would come in to sign everything.

          Now we have some clients who we haven't seen for 20 years yet we still do their tax every year.

          Technology!

  • sunarde on 22/05/2017 - 18:01

    Hats off to you Nicolemcmillon!

    I have a query regarding HELP Debt, FBT and education deductions.

    I work as an education consultant on a 79k package (includes 14k FB - company car) + OTE.

    Assuming I chose to take up further studies in a graduate certificate/diploma/master in 'learning science & technology' which would theoretically help me perform my job more effectively, will I be able to claim 100% of expenses if paid upfront? Will this be different if it was a HELP debt?

    *Judging by previous comments, as long as the unit is relevant to job description/role it should be 100% deductible if not paid by the employer?

    By having a company car, does this implicate the deductions?

    Many thanks,

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:09

      As long as it is relevant for your current job and not to get a better job, then it should be deductible.

      You are also better off paying upfront as the HELP interest is only going to get higher and higher.

      • sunarde on 22/05/2017 - 18:26

        Thank you for the quick reply Nicole. With that in mind, if I jumped jobs after a year of completing further education - will that be acceptable or are there tax implications for jumping jobs too early? Thanks heaps in advance :)

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:28
          +1

          It should be fine as long as your intention at the time of doing the course was to further your skills in your current job in your current title.

        • sunarde on 22/05/2017 - 18:32

          @nicolemcmilllon:

          Guess I know where I will be dumping a good proportion of my salary into next year :) Thanks heaps!

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:34

          @sunarde:

          I would suggest getting a more personalised answer from your current accountant and provide them details about your employment as well as the name and cost of the course you are doing just to be safe :)

  • decr on 22/05/2017 - 18:17

    As this has not come up in comments yet, is there a threshold of sorts for claiming home Internet for work purposes? I genuinely use more than 50% of it for doing work remotely, measured by time. My workplace has a relaxed work-from-home scheme which is great especially when the kids are sick and I have to stay home. I also work odd hours here and there when things break. I don't have my last tax return with me but from memory I claimed 50/50 last year and had no issues, however I believe the amount was very close to, or slightly over, $300 as I only had fixed Internet for a fraction of the year (yeah, thanks NBN!).

    Having full service this year the total will be around $1000 so I am wondering whether it will raise flags claiming 50% of that? It's all justifiable, just wondering whether it will become an issue.

    Also reading through the comments wasn't hiring an accountant to do your tax return tax deductible anyway?

    Thanks :)

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:27

      Yes the accountant fees are tax deductible.

      IF you estimate that your internet usage is 50% for business purposes there is no limit to the amount you can claim. Claiming 50% of $1,000 is no problem.

      • decr on 22/05/2017 - 19:02

        I estimate it's more like 75% but I'm chickening out at 50%. It's not for a business, I'm on a basic salary working full-time.

        Edit: Thanks for the reply :)

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 19:06
          +3

          If you estimate that it is 100% then do not be afraid to claim 100%.

          If you constantly work from home, there is nothing stopping you from claiming other running expenses such as electricity and depreciation on your work area at home.

          If it makes you feel more comfortable, prepare a 12 week log book showing the amount of time spent doing work stuff on the internet and the amount of time doing personal stuff. You can use that to work out your percentage for the next few years as long as your circumstances don't change.

          Please let me know if I can be of further assistance.

  • MessyG on 22/05/2017 - 18:39

    In terms of deductions, what are the percentages you get back? Things like education expenses, professional membership, conferences etc?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 22/05/2017 - 18:48

      your deduction will lower your taxable income.

      in effect you will be paying less. your marginal tax rate will determine this, but it is approximately 30% if you want an average of most people.

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