September, 2010

Superflash is a monthly newsletter providing news and infomation for SMSF and their members

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Editorial from The Northern Star & The Advocate Newpapers on the 01/09/2010

To maximise your personal tax refund you need to maximise all your tax-deductible expenses and personal tax offsets which typically include:

§         Private motor vehicle used to attend seminars, training sessions, to carry bulky work goods, drive between two work sites on the same day and using your vehicle within your work. The deduction is based upon the total number of work related kilometres travelled during the year, subject to a 5,000 km maximum and the engine size of your vehicle.

§         Purchase of uniforms and protective clothing and footwear

§         Laundry and repairing of the above clothes

§         Sunglasses, hats and sun lotions for outdoor workers

§         Union fees and memberships to work associations

§         Mobile and home telephone expenses

§         Internet used for work related purposes

§         Educational activities undertaken that relate directly to your current employment

§         Electricity for the home office

§         Purchase of tools and equipment

§         Stationary, diaries, calculators and log books

§         Computers used for work can be depreciated 

§         Computer related expenses such as paper and ink, software and computer repairs

§         Gifts to registered charities and political parties

§         Tax agent fees paid last year to prepare your return

§         Medical expenses over $1,500

§         Children’s educational expenses

This year the tax office has indicated that it will be targeting high claiming taxpayers and taxpayers who fall outside their relevant occupation benchmarked expense ratio, so it is essential that correct and complete records are kept to verify these claims in the advent of an audit.

Editorial from The Northern Star & The Advocate newspapers on the 30/08/2010

With the annual task of preparing your tax return now upon us, you need to make sure that you are claiming all your tax deductions and tax offsets.

My experience as a tax accountant over the last 20 years has shown me that many valuable tax breaks available to employees, retirees and investors are often overlooked.

I have set out below the most common tax benefits that are overlooked when tax returns are being prepared:

• Failure to claim your private motor vehicle when used for work related activities including attending conferences and seminar’s, dropping off or picking up bulky supplies and driving directly between two places of work
• Not claiming the tax offset for medical expenses where over $1,500 has been spent by the family on dental, optical, chemist, hospital, ultrasounds, hearing aids etc. Please note that the $1,500 threshold is after refunds from health funds and medicare
• Not claiming depreciation on rental properties built or improved after the 17^th July 1985
• Failure to claim travelling costs to rental properties for inspections and repairs. Costs here include motor vehicle, airfares, accommodation and meals. Apportioning these costs may be necessary where private holidays are also included in the trip
• Not offsetting previous years capital losses against current year capital gains
• Failure to add interest, rates, land tax and fences to the cost base when calculating the capital gain on the sale of land
• Not contributing $1,000 into superannuation to take advantage of the superannuation co-contribution scheme. This scheme has now being extended to the self-employed
• Not claiming for educational expenses of your children at primary or high school  
• Not claiming the trip to your accountant last year to do your tax return
• Not claiming for gifts and donations made during the year