David Douglas Accountants

Tax Tip of the day:

<% 'HOME PAGE TIPS Dim TodaysTip Tip1="If you claim laundry of uniforms and protective clothing > $150 then you must provide written evidence. If < $150 you may use a reasonable basis to calculate the amount. e.g. $1 per load for work related clothes." Tip2="Individuals usually pay no income tax if their assessable income is < $20,542 ($20,542 less $18,200) x 19c = $445 less $445 low income rebate = Nil. If a taxpayer(s) qualifies for the $2,230(single), $3,204(couple) Senior Age Tax Offset they pay no tax if their rebate income is < $32,279 and < $57,984 respectively. The Senior Age Tax Offset reduces by 12.5 per $1 after these thresholds and Low Income Rebate reduces by 25c per $1 after $37,000." Tip3="Businesses do not have to register for GST if their sales are < $75,000." Tip4="You must keep tax records for 5 years from the date of lodgement of your tax return." Tip5="Medicare Levy Surcharge and the 29% Government Health Insurance Rebate are applied based on your adjusted taxable income. The thresholds are $90,000 to >$140,000 (singles) and $180,000 to >$280,000 (families). You must estimate your adjusted taxable income in advance for the year ending 30 June 2017 and notify your private health insurer." Tip6="Family Tax Benefit Part A is $5,412.95 or $6,825.50 per dependent child if < 13 yrs or < 19 yrs respectively and family income < $51,027. If your family income is > $51,027 FTB Part A reduces by 20c per $1 until your family income reaches $66,941 or $74,004 respectively + $15,914 or $22,976 respectively for each child after the first. At this point a base amount of $2,230.15 per child is paid until your family income reaches $94,316 or higher. Your FTB Part A will reduce by 30c per $1." Tip7="Zone Tax Offset will exclude Fly In Fly Out or Drive In Drive Out Workers where their normal residence is not within a zone." Tip8="Family Tax Benefit Part B is $4,339.85 if a dependent child is < 5 yrs or $3,139.50 if the child is > 5 and < 19 if the child has not completed secondary school and lower earner’s income < $5,402 and higher earner's income is < $100,000. If the lower earner's income is > $5,402 then FTB Part B reduces by 20c per $1 until the lower earner's income reaches $27,101 and $21,097 respectively." Tip9="Motor vehicle 'Set rate per kilometer method' means that you can claim up to 5,000 work kms x 66c = $3,300 by using an estimate of regular pattern of travel or diary, without receipts. This includes work travel to carry bulky equipment with no secure lock up on site, travel between two places of work, travel to see clients, travel to a place of education, travel overnight for work and travel to attend meetings." Tip10="Family Rent Assistance is $4,036.76 for 1-2 children < 13 yrs if Family Assistance Part A is > the base rate. This means a family is eligible for rent assistance if their family income is < $68,091, $84,279 and $104,612 for 1, 2 and 3 children respectively." Tip11="Child Care Rebate is 50% of your out of pocket child care costs. The Child Care Rebate annual cap is $7,500 per child per year. The rebate is not means tested but you must satisify the Child Care Benefit Test if you are using approved care for work, looking for work, voluntary work, training or study related reasons for at least 30 hours per fortnight." Tip12="Record Keeping Tip: Photograph your receipts before they fade with your mobile then email them to your laptop." Tip13="You may claim up to $150 laundry expenses for protective clothing or uniforms without receipts." Tip14="No receipts are required for work expenses up to $300 plus another $200 for expenses < $10. These items of < $10 usually apply to small tools, stationery, parking and sundry expenses. No receipts are required for laundry up to $150 or motor vehicle kms up to 5,000 kms x 66c = $3,300 but you need to prove a pattern of travel for work purposes." Tip15="Credit card or bank statements may be used as evidence for substantiation in limited circumstances as per ATO Practice Statement LA 2005/7, you will usually have to keep itemised receipts. As receipts often fade many clients photocopy or take photos of them using their mobiles." Tip16="Travel to and from work is not usually a tax deduction. There are some exceptions as follows: (i) When carrying bulky equipment and there is no secure lockup on site. (ii) When you travel to visit a client. (iii) When you travel to attend work meetings. (iv) Usually when you travel to places of education. (v) When travelling between two places of work. (vi) When you travel overnight for work." Tip17="No receipts are required for motor vehicle expenses up to 5,000 kms. Actual work kms travelled x rate 66c. You must be able to work out your estimate by using a diary or regular pattern of travel. You must have an employer's letter explaning why you need to use your car for work puropses." Tip18="Overnight travel claims require that you have a regular pattern of expenditure including diaries, receipts and bank statements for between 28 days and 3 months (truck drivers) and a letter from your employer stating why you need to travel away from your usual place of work and that the allowance is a travel/meal allowance. If you are claiming the ATO reasonable overnight travel and overtime meal expenses you must also satisfy the other conditions of TD 2017/19. e.g. You must be travelling away from your normal place of work and not staying in one town for > 21 days; You must not claim > $128.70 for meals & incidentals in capital and high cost cities in Australia." Tip19="Home office expenses include electricity that may be apportioned based on floor area, e.g. (5% x $400 per quarter x 4 = $80) plus depreciation of furniture, carpets, book shelves, blinds, etc. No receipts are required for home office expenses if using the ATO 45c per hour rate if you keep a diary for 4 weeks every year. Other home expenses include mobiles, internet, laptops, iPads, computer supplies, etc. Please keep a 28 day diary." Tip20="The motor vehicle 12 week log book method usually achieves a substantially larger deduction than using the 5,000 kms x 66c set rate method. Your logbook must be kept for 12 weeks every 5 years for each different car and if your % changes by > 10%. Many of my clients take photos of their odometer dashboards every morning. You can claim a percentage of fuel, depreciation, finance, rego, insurance, repairs, tyres, RACQ and car washes." Tip21="Business deductions for iPads, laptops, Macs, iPhones, mobiles, home phone/internet, computer supplies, etc. are usually apportioned for private use by using a 28 diary every year." Tip22="Protective clothing is generally tax deductible if it is designed to protect. eg steel capped boots, hi visability shirts & pants, fire proof clothing, non slip safety shoes, aprons, etc. Conventional clothing is not tax deductible e.g. King Gee drill pants, jeans, etc. unless they have a logo or fluro strips or the uniform is registered with AusIndustry." Tip23="The income tax free threshold for individuals for the year ended 30 June 2018 is $18,200 after which you pay 19c. You also receive a low income rebate of $445 which means that you pay no income tax until you reach $20,542. Family Tax Benefit Issues: Part B eligible family tax benefit income threshold for sole parents or lowest income spouses is $ 5,475. You then lose 20c per $1 of Family Tax Benefit Part B over this threshold. The Family Tax Benefit Part B payment for a dependant child < 5 yrs is $4,409.20 and for a child < 18 years and a dependant full-time high school student is $3,186.45." Tip24="1 July 2017 superannuation concessional contributions will be allowed up to $25,000. Your superannuation fund pays 15% contributions tax on these amounts. If your taxable income is < $37,000 your tax rate is 21% or nil if < $18,200. Therefore it is important to consider the tax advantages at different taxable income levels." Tip25="If your superannuation co-contribution is $1,000 and your income is < $33,516 then the ATO will give your superannuation fund a co-contribution of $500. This amount reduces by 3.3333 cents per $1 until your income is $48,516." Tip26="Rental property depreciation includes structural capital write-offs e.g. buildings, structural improvements & renovations after 18th July 1985 usually @ 2.5%, e.g. floors, walls, roofs, fixtures, etc. Plant non structural depreciation is usually between 5% and 20%, e.g. carpets, hot water systems, curtains, ovens, dishwashers, etc. and is often the largest rental tax deduction after interest but is often forgotten." Tip27="Rental property capital works deductions includes buildings, structural improvements & renovations after 18th July 1985 usually @ 2.5%, e.g. floors, walls, decks, roofs, fixtures including bathrooms, kitchen built in benches & cupboards, etc and is often claimed over a 40 year period. It is usually the largest rental tax deduction after interest but is often not claimed." Tip28="Home office expenses include iPhones, mobiles, home phones and internet; Computers - iPads, Macs, laptops & desktops; Computer supplies - hardware, software, USBs, cables, printers; Stationery - cartridges, diaries, pens & office sundries. You must apportion for private use." Tip29="Negatively gearing a rental property (where rental tax deductions exceeds rental income) may result in a large refund. This refund is often used to help with cash flows, e.g. mortgage repayments. Some clients apply to the ATO for a variation of PAYG to reduce tax withheld on their wages to assist with their cash flows." Tip30="Bookkeeping for small businesses < $200,000 is easy by using an excel spread sheet to summarise expense categories and GST credits. Just set up Date / Description / Amount / GST / Expense catergories into vertical columns, enter bank statements then autosum. This should take about 1 hour to lodge your BASs every 3 months." Tip31="Superannuation Funds are low taxed structures paying only 15% tax on profits or 0% in pension phase plus 15% contributions tax on tax deductible contributions. You may make a tax deductible contribution of up to $25,000 through your 9.5% employee super guarantee levy, additional superannuation salary packaging or self employed superannuation contributions. You usually can not access your super until you are 60 and retired." If (Day(date()))<32 Then test1=(Day(date())) TodaysTip=Eval("Tip" & test1) Response.Write ([TodaysTip]) End If 'If (Day(date()))>=32 Then 'test1=(Day(date())-31) 'TodaysTip=Eval("Tip" & test1) 'Response.Write ([TodaysTip]) 'End If %>

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BRISBANE TAX ACCOUNTANTS

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At David Douglas Accountants we specialise in tax return strategies. We will show you how to claim all the tax deductions that you are entitled to and maximize Family Tax Benefits.

For businesses we will evaluate the best business structure for you to lessen the burden with the use of trusts, companies and superannuation funds.

Take the compliance weight off your shoulders at David Douglas Accountants. Tax is our business.

TAX ACCOUNTANTS BRISBANE

TAX ACCOUNTANTS MORAYFIELD

We have clients from the following locations:

Brisbane, Gold Coast, Sydney, Newcastle, Sunshine Coast, Cairns, Canberra, Melbourne, Adelaide, Perth, Darwin.

Albion, New Farm, Teneriffe, Newstead, Windsor, Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra.

Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba, North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie Island, Elimbah, Kippa-Ring.

We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and sole traders.

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