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PERSONAL TAX TIPS 2014

Our Best Tax Tips to help maximise your tax refund. Intended as a quick checklist only. If unsure please include a note in your tax return submission, or send/upload a document.

 

Basic Rules

  • All deductions over $300 need to be substantiated with receipts if needed, or
  • where reasonable estimates are allowed they must be based on verifiable documentation
  • the amounts need to have actually been paid by cash or credit card in the financial year
  • for residents no tax will be payable for total income under $20543
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    Tax Residency Status

  • this greatly affects the tax-free threshold, the rate of tax, and the offsets available
  • for non-tax-residents, tax will apply to every dollar, starting at 32.5%
  • to check the criteria for claiming tax residency go here tax-resident status
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    Income

    1. Defer Income Any income not received is not usually taxable, excluding some trust and investment type income

    2. Omissions Include all income info before lodging, as the ATO matching system can result in audits or penalties

    3. Allowances Need to be included if on your PAYG Summary, but ensure you claim deductions against these

    4. Capital Gains Ensure this is correctly calculated, and includes all available concessions and discounts

    5. Exempt Income includes some government benefits, disaster payments etc. Check the documentation

    6. Foreign Income Must be included, even if exempt, but include any related foreign tax paid and deductions

     

    Deductions

    7. Prepaid Deductions Any costs paid before 30 June will be deductible, if relating to the next 12 months

    8. Car Deductions Estimate work-related car use, excluding home to work, using the estimated kilometre method

    9. Travel Expenses Claim any travel costs, car hire, fares, tolls or parking fees where required for work

    10. Work ute/van Claim 100% for work-specific vehicles that carry over 1 tonne or 9 passengers

    11. Uniforms Claim compulsory uniform, protective or occupation-specific clothing. Excludes everyday clothing.

    12. Laundry Estimate up to $150 for weekly laundry & dry-cleaning of work uniforms and clothing

    13. Self-Education Costs If related to current work claim all course fees, books, travel, equipment, less first $250

    14. Fees Claim union, professional, and trade fee & registrations. Check your PAYG Summary if these deducted from pay.

    15. Training Claim the cost of seminars, courses, conferences & workshops, and related software

    16. Books & Mags Claim cost of reference books, journals, trade magazines and online subscriptions

    17. Safety Claim safety or protective items such as hats, safety glasses, sun-protection & sun-glasses if applicable

    18. Tools & Equipment Claim a work-use proportion for your tools, computer, telephone or other equipment

    19. Depreciation Claim 100% if item is under $300, otherwise claim depreciation over useful life

    20. Home Office Claim work-use proportion of telephone, internet or electricity bills, if exclusive work room at home

    21. Income Protection Insurance Premuims are deductible, and can be prepaid. Life insurance is never deductible.

    22. Investment deductions Claim any financial advice, transaction fees, or interest costs on loans to invest

    23. Donations Made to an approved charity or other organisation

    24. Tax Agent Fees Don’t forget to include tax return fees paid during the year, as well as any ATO interest imposed.

     

    Offsets note that those marked * should generate automatically from your income and details

    25. Low Income Offset* Up to $445, reducing from $37,000 to $66,667 and not pro-rated for part-year taxpayers

    26. Spouse Offset Up to $2,355 for a non-working spouse under 40 with no dependants, and ATI income under $9,702

    27. Dependant Parent Offset Up to $1,726 for each dependant parent, if not receiving Family Tax Benefit Part B

    28. Senior Tax Offset Up to $2,230 if aged over 64.5 years and income below 48,525 or 78,992 for couples

    29. Private Health Insurance Provide policy details and check your 2012 statement for unclaimed rebate to offset

    30. Zone Offset Available for you and dependants if lived in a remote area for 183 days or more, including a prior year.

    31. Spouse Super An offset at 18% of Super paid for a spouse with income below $13,800, up to $540 available

    32. Super Co-contribution Up to 1000 for un-deducted contributions, phasing out for incomes from 31,920 to 61920.

     

    Tax Adjustments

    33. Medicare Levy An extra 1.5% tax, unless income below $22,828, seniors $30,685, couples $38,521+$3538 per child

    34. Medicare Surcharge An extra 1% tax applies if income is over $80,000 and you had no Private Health Insurance

    35. Part-Year Adjustment Resident tax rates will be pro-rated if a “Resident for tax purposes” for only part of the year

    36. Medicare Exemptions If a non-resident, or a “Resident for tax purposes” but not entitled to Medicare benefits

    37. Adjusted Taxable Income (ATI) Many offsets are now being income tested against ATI including Reportable Super, Fringe Benefits, Government allowances, and excludes investment losses.