As an accountant I probably shouldn’t admit to sometimes having trouble remembering numbers…but I am human and as such…it happens (not often…but sometimes)!

At any given time I have a multitude of numbers running around my brain – right now I’m thinking of dates and job quotes and client details and counting days…add to that the everyday numbers everyone deals with from passwords and login details to dollars and cents and everything in between – it’s a wonder I haven’t gone mad!

One of the numbers I have had the most difficulty remembering is my Australian Business Number (ABN)…I’ve got it under control now, but it took me a few months before I was able to roll it off my tongue when asked.

The beauty of the ABN though…is that you don’t need to remember, because you can look it up at anytime, as long as you’ve got an internet connection.

If you ever forget your ABN, or you need to confirm the ABN of another entity, head to www.abr.business.gov.au where you can search by name (you can even search by number if you’ve got the ABN and you want to confirm the name of the holder – it works both ways!)

Take a look and save it in your “favorites”, I promise you won’t be disappointed!

Regards

A few weeks ago I wrote about Private Health Insurance – Understanding the Rebate, today I’m going to take that a step in a slightly different direction and chat about income for Medicare Levy Surcharge (MLS) purposes.

Essentially, if you are an individual taxpayer without appropriate Private Health Insurance and with income exceeding the threshold for MLS purposes – you will be charged the Medicare Levy Surcharge (MLS) upon lodgement of your income tax return.

When determining if you are required to pay the MLS, the Australian Taxation Office (ATO) take into consideration your “income” for this purpose, which is not simply your taxable income – rather it includes other amounts that impact on your taxable income, such as:

• taxable income
• reportable fringe benefits
• total net investment losses
• reportable superannuation contributions
• a share of net income of a trust on which the trustee must pay tax (ie: not included in your taxable income)
• exempt foreign employment income

At this time of year, nearing the end of the financial year, there is plenty of advertising from health insurance companies relating to this exact topic – how to avoid the MLS – you should take this opportunity to review your income for MLS purposes and determine whether a private health insurance policy is suitable for your circumstances.

In reviewing your situation, I realise that some of the terms above might be foreign to you, if you are unsure if they apply to you, I recommend you ask your accountant!

Regards

You all know how I love an acronym…but what is the CPI?

CPI is the acronym for Consumer Price Index, which is a measure of changes in the price level of a basket of goods and services consumed or purchased by households.

Basically, the Australian Bureau of Statistics (ABS) collects data each quarter on prices in each of the eight State or Territory Capital Cities.  This data consists of prices on a fixed set of items and determines if their cost has increased or decreased.  The result is the CPI.

CPI should not be confused with the term “Inflation” – while many use these interchangeably, inflation refers to the increase in overall prices as opposed to the select basket that is used for CPI.

The CPI is often applied to lease agreements, franchise arrangements and other contracts or set fees, as a way for the vendor (or seller) to protect the dollar value of their services.  The CPI is also used by the Government when considering changes to welfare payments.

You can see the current CPI by visiting www.rba.gov.au or you can view historical figures at www.abs.gov.au

Regards

To celebrate the first day of the last month of this financial year…I’m feeling generous!

For everything you need to consider for your 2015 individual tax return, The Tax Chic has the answer…

All you need to do is enter your e-mail address in the subscription box to the right of this post, accept the e-mail you will receive (no spam from me) – and I’ll send you a complimentary checklist for your 2015 tax return!

For everyone who is already a subscriber, keep an eye on your inbox and I’ll send you one shortly…

Now of course this checklist can be provided to your existing accountant…but for a smooth, friendly and affordable experience, you can return to me to complete your tax return for 2015!

Happy almost end of financial year!

PS Please share this post with your family and friends so they too can receive a complimentary checklist from The Tax Chic!

Regards