Tax Deductions

A lot of our clients have received an unexpected additional tax refund as a result of the ATO amending tax returns of eligible Youth Allowance recipients to include a deduction for study expenses. This came about thanks to the High Court decision in  Commissioner of Taxation v. Anstis. In the same way that ...

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I was met with a mix of both scepticism and delight this week as I contact taxpayers who have received an unexpected, addition tax refund as a result of the Anstis case. (Let’s face it, it’s not often I call people to say “Hey, the Tax Office have sent us money for ...

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The ATO is reminding small businesses that the first use and installation deadline for the business tax break is fast approaching. Small businesses who committed to investing in an eligible asset as part of the business tax break initiative need to ensure that the assets are first used or installed ...

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Small businesses will be able to access the tax break for assets costing $1,000 or more. For all other businesses, the asset threshold is $10,000. The tax break provides an additional tax deduction for assets acquired from 13 December 2008 to 30 June 2009, where the asset is also installed before 30 ...

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The Tax Office today announced a practical approach to ensure those donating to help the victims of the Victorian bushfires and Northern Queensland floods can do so with minimum fuss. People who give to ‘bucket donations’ can claim a tax deduction equal to their contribution up to $10 in their ...

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Rental income and expenses has been a strong focus for a few years, because of the large number of new entrants and the wide range of common mistakes being made in claims. Figures recently released indicate that over 1.5 million people claimed more than $24 billion in rental deductions in ...

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Work-related expenses will continue to be a focus area for the Tax Office in 2007/08.  Around 7.1 million individuals claimed $12.5 billion in 2005–06 income tax returns - an increase of 9.3% over the previous year. The Tax Office plans to conduct 15,000 reviews or audits of at-risk cases. Based on an analysis of claim patterns ...

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Q&A: Allowances and Deductions

Question: I received a laundry allowance from my employer. Does this mean I have been reimbursed and can’t claim a tax deduction for laundry? Answer: Receiving an allowance from your employer (as shown on your payment summary) is not the same as being reimbursed. The allowance is taxable income and ...

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Work Related Expenses Under the Microscope

Last year over 7 million people claimed deductions for work related expenses totalling a whopping $12 billion. The Tax Office has said it will be looking at claims for work-related expenses very closely. For the 2007 tax return, the A.T.O. will be paying particular attention to claims for motor vehicles, ...

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Q & A: Claiming Everyday Bank Fees

Question: If my pay is made directly by my employer into an everday bank account, can I claim the bank fees and charges associated with that account? Answer: In most cases, the answer will be no. Banks rarely charge for deposits into everday accounts and this would be the only ...

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Investment property tips – depreciation

Wanting to capitalise on the rental property that you own? A lot of people hold rental properties for a two-fold reason: to negative-gear (reduce their current taxable income) and to obtain capital growth from the property in future years. To maximise negative gearing it is advisable to obtain a quantity ...

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