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Get Organized BEFORE Tax Season

 

 

Hello!  This is just a quick shout out to let you know that I’m in the process of reviewing a paperless solution called Receipt Bank, which at first glance sounds very promising.  The software provides multiple ways for you to upload your receipts to the cloud where they are safely stored and organized.  It appears to be a great was to manage your receipts online.

I hope to have a review for you to read soon, but until then why not take a look at it yourself.  You can eliminate the hassle of paper receipts before tax season and best of all, it integrates with all accounting softwares like Xero, Quick Books and MYOB Try at www.receipt-bank.com

 

Work-related expenses

According to the ATO we claim around $18 billion of work-related expenses each year. The most commonly claimed deductions include car, travel, uniform and self-education expenses. Keep in mind that in order to claim a work-related expense:

  • You must have paid the cost during the financial year. Paying the invoice on 1 July instead of 30 June means waiting an extra 12 months to claim the deduction!
  • If the expense was reimbursed by your employer, you can′t claim it as a deduction.
  • Receiving an allowance from your employer doesn′t automatically entitle you to claim a deduction!
  • If your work-related expenses are more than $300, you′ll need to keep receipts.

Also keep in mind that different occupations can claim different deductions. Depending on your job description, you may be able to claim for moisturiser, first aid courses, sunhats, Pay TV access, fitness expenses or handcuffs. The ATO website has some terrific information on what deductions are available for specific industries.

 

Medicare Levy Surcharge

The Medicare Levy Surcharge (MLS) is levied on payers of Australian tax who do not have private hospital cover and who earn above a certain income. The surcharge aims to encourage individuals to take out private hospital cover, and where possible, to use the private system to reduce the demand on the public Medicare system.

The surcharge covers you and your dependents.  Your dependents include your spouse, any of your children who are under 21 years of age, or any of your student children who are under 25 years of age. For more information about who is considered a dependant for MLS purposes, you can refer to the ATO’s Medicare Levy Surcharge page.

The surcharge is calculated at the rate of 1% to 1.5% of your income for Medicare Levy Surcharge purposes. It is in addition to the Medicare Levy of 2%, which is paid by most Australian taxpayers. To work out your annual income for MLS and Rebate purposes, you can refer to the Australian Taxation Office’s Private Health Insurance Rebate Calculator or contact the ATO directly.

Charity saves you money !

Did you know that every donation over $2 you make to a registered charity is tax deductible? After you make any donation you should be given a receipt. At tax time, add up the donation receipts and you can claim it as a tax deduction for the preceding financial year. Basically, some of the money you donate to good causes enables you to pay less tax.

 

Disclaimer

The articles presented on this blog are general in nature and should not be assumed to be applicable to your situation. In addition, tax law changes daily and the articles on this blog are not updated to reflect these changes. Anyone receiving any part of the information on this blog should not rely on or act or refrain from acting on the basis of any matter or information contained in this blog without seeking appropriate tax, legal or other professional advice.

The transmission and receipt of information contained on this blog does not form or constitute a client relationship. Nothing in this blog constitutes legal advice. Opinions rendered by tax professionals are not authority.

 

You agree to hold Active Tax Services, its principals, agents and assigns forever harmless from any liability for your use or failure to use the information, advice, referrals, or suggestions provided by this blog at any time.

 

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