It is quite possible that this is the most common question I get asked in my role as an accountant!

The first thing I always point out when I’m presented with this question, is that the Australian taxation system is designed so that the amount of tax your employer withholds from your salary and wage should equate to your tax liability when you lodge your tax return.

In most cases you shouldn’t have to incur many, if any, expenses relating to your employment, but of course there are always exceptions…

In addition, I always ask the taxpayer if they understand that for every dollar they spend on work related expenses, they only save an amount equivalent to their marginal tax rate and will still be out of pocket for the balance of the dollar (and then give an example relevant to them so they can see the impact in dollars and cents).

In conjunction with the National Tax Accountants’ Association, The Tax Chic and LMB Consulting now have access to a fabulous new tool…”Deduction Finder”…as the name suggests, the deduction finder software has been designed to give you an indication on every deduction you may be entitled to claim…and provides some great explanations regarding the items you are not able to claim…

Want to find out what deductions might be applicable for your occupation?  Contact The Tax Chic and LMB Consulting for a consultation.

Regards

…don’t panic, it’s not as morbid as it sounds… I’m simply referring to the end of the financial year!

As I write this, it’s Sunday night.  I’ve nestled myself into the king size bed in my room at one of my favourite places in Melbourne, Crown Metropol.  Still full from the superb dinner (including dessert!) I had at The Meat & Wine Co, pondering the conversation from the night and feeling remarkably relaxed…until I realise it’s the 1st of June…the first day, of the last month of the financial year…and there’s only 21 business days until 30th June…

Some of you may wonder what all the fuss is about, but others will know that there are many things that should be done, and many things that can be done before 30th June to put yourself and your business in the best position possible for the end of the financial year…and the start of a new one!

I spoke recently about the importance of planning, and I firmly believe that if you can organise yourself, or get the right help throughout the year, then there’s no need for panic at the end of the financial year…but if you’re feeling like there’s questions you need to ask or actions that need to be taken, I encourage you to do so sooner rather than later!  Inevitably…questions and answers and actions take time…so give yourself and your advisors the best chance of attaining the best possible outcome…

…remember, there’s only 21 business days until 30th June!

Regards

Throughout the year I am conscious to make tax deductible donations to many charities – it’s a great way to give back to your community and to support organisations close to your heart.

You can only claim a tax deduction if your gift or donation is made to organisations with deductible gift recipient status (DGR), to check this status you can search the ABR Website.

To claim a tax deduction for a gift, four conditions must be met:

• The gift must be made to a deductible gift recipient – see above
• The gift must truly be a gift and you cannot receive a material benefit or advantage – as such raffle ticket purchases are not gifts
• The gift must be covered by one of the gift types – money is the most common gift, but deductions may be claimed for gifts of other types such as property or shares
• The gift must comply with any relevant gift conditions – refer to the DGR for any conditions which may affect the type of gifts they can receive

You should also note that deductions for gifts are to be claimed by the person that makes the gift (the donor), so make sure the receipt received is in the correct name!

If you’re sitting there thinking it might be a good time to make a donation (just before the end of the financial year), then…I am unashamedly going to tell you all that I am participating in the MS Walk + Fun Run  this Sunday in Melbourne to raise awareness of MS and much needed funds to research both cause and cure…and I’m doing it for a beautiful friend…if you’d like to make a donation towards our team, please follow this link.

Regards

Did you know that since 1st July 2005, most employees are able to choose their super fund?

This is a great initiative for employees, as it gives you the chance to easily keep your super in one place and avoid the costs associated with having multiple super funds (as was very common in the past).

 

You can generally choose your super fund if you are one of the following:

• employed under a federal award
• employed under a former state award, now known as a ‘notional agreement preserving state award’
• employed under another award or agreement that doesn’t require super support
• not employed under any state award or industrial agreement (including contractors paid principally for their labour).

While you can make a choice of super fund as often as you like, your employer is only obligated to accept one election every 12 months.

You can download a Standard Choice Form from the ATO website here, alternatively most super funds have a pre-filled form on their website, along with the other requirements such as a statement that the super fund is a complying fund and instructions on how your employer is able to make a contribution on your behalf (refer to the standard choice form for information on these requirements).

So have a think about where your super is going, and if you think it’s time for a change…make the choice!

P.S. For any small business who feel the choice of super fund concept creates additional burden…have a read of our previous post Policies and Procedures, and contact The Tax Chic for assistance.

Regards

*Super = superannuation