TOLTON & CO. PTY. LTD.
ABN 93 009 447 634
Business and Taxation Consultants
Quality Assured by the Australian Society of CPA’s
72B Hale Road
Forrestfield WA 6058
Unit 4, 264 Kalamunda Road
Maida Vale WA 6057
Unit 8, 3 Canning Road
Kalamunda WA 6076
Postal : PO Box 126
Forrestfield W.A. 6058
Telephone:
(08) 9359 1011
Fax:
(08) 9453 1735
Email: accountants@tolton.com.au
Web:
www.tolton.com.au
R.B. Tolton
BBus(WAIT),PGradDipBus(Curtin),FCPA,FTIA
2015 INCOME TAX RETURNS
The 2015 financial year has now come to an end. So once again it is time to gather your
papers together so that we can complete your tax returns. We have attached your personal
income tax returns and business checklists to help prepare your 2015 income tax
information.
Please provide your information in our preferred format. Please complete our checklist
which can be found on our website, www.tolton.com.au. See clients, current
information, 2015 individual income tax return checklist. Once you have completed the
form please email it to us or bring it with you for your interview.
2015 TAX RETURN CHANGES
Tax Rates have not changed for the 2015 year. Individual resident tax rates are as
follows:
Tax rates 2014-15
Taxable income
Tax on this income
$1 – $18,200
Nil
$18,201 – $37,000
19c for each $1 over $18,200
$37,001 – $80,000
$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000
$17,547 plus 37c for each $1 over $80,000
$180,001 and over
$54,547 plus 45c for each $1 over $180,000
Medicare Levy
From 1 July 2014 the basic medicare levy percentage has increased by 0.5% to 2%.
Also, for taxable incomes over $180,000, there will be an additional 2% payable for the
Temporary Budget Repair Levy. This takes effect for 3 years from 1 July 2014 to 30
June 2017.
Low Income Tax Offset
The full amount is $445 reducing by 1.5 cents in the dollar, for every dollar of taxable
income over $37,000 such that it cuts out at $66,667. The effect is that no tax is payable
up to an income of $20,542.
Dependent Spouse Offset
From 1 July 2014 taxpayers who were previously able to claim the dependent spouse
offset, including under the calculation for zone offset, will no longer be able to claim the
dependent spouse offset. The legislation has yet to be passed by Parliament.
Taxpayers with a dependent who is genuinely unable to work due to a carer obligation or
disability will continue to be able to claim the Dependent (Invalid and Carer) Tax Offset.
Mature Age Workers Tax Offset
This is not available from 1 July 2014.
Net Medical Expenses Offset Phase-out
Taxpayers who received the offset in their income tax return for both 2013 and 2014 will
continue to be eligible for the offset in the 2015 year if they have eligible out-of-pocket
medical expenses above the relevant claim threshold. Those who receive the tax offset
for the 2015 year will continue to be eligible for the 2016 year.
Taxpayers with an adjusted taxable income above $90,000 for singles or $180,000 for a
couple or family in 2015 year will be able to claim a reimbursement of 10% for eligible
out of pocket expenses incurred in excess of $5,233.
Taxpayers with an adjusted taxable income below these thresholds will be able to claim a
reimbursement of 20% for net medical expenses over $2,218 when they lodge their tax
return.
Taxpayers who did not claim an offset last year will only be eligible to claim for
disability aids, attendant care or aged care expenses.
Small Business Accelerated Depreciation
With effect from 12 May 2015 to 30 June 2017 the immediate write-off limit for each
small business asset purchased is increased from $1,000 to $20,000.
From 12 May 2015 farmers will get accelerated deductions for water facilities (100%),
fodder storage (3 years) and fencing (100%).
Superannuation Contributions Caps
From 1 July 2014 the concessional contributions cap is $35,000 for people age 49 and
over on 30 June 2014. Otherwise the cap is $30,000.
Concessional contributions are essentially those contributions which are tax deductible,
and include employer contributions and personal contributions claimed by the selfemployed.
Super Guarantee
From 1 July 2014 the superannuation guarantee percentage increased to 9.5% from
9.25%. This will remain at 9.5% until 30 June 2021.
AUDIT ACTIVITY
The ATO has advised that it continues to expand its audit coverage of individual
taxpayers by using more sophisticated compliance techniques to identify areas requiring
specific attention. In fact, the ATO has recently announced new data-matching
activities for individuals as a means of further expanding and improving its data and
information matching activities.
For the 2015 income year, based on claims identified in previous years, it is likely that a
broader range of areas will receive greater compliance attention from the ATO, such as
the following:
Work-related expense claims – The ATO has advised that it will be using extensive
date analysis to identify areas requiring attention across all work-related expense claims,
regardless of the occupation concerned. In particular, the ATO will be paying particular
attention to work-related expense claims relating to the following:
Claims for travel expenses relating to overnight travel.
Reasonable travel allowance expense claims.
Claiming the work-related proportion of computers and similar devices eg iPads.
Rental properties – The ATO has also advised that it will be increasing its compliance
focus on rental property deductions, with a particular focus on the following:
Claiming purchase-related costs for a rental property.
Claiming deductions for properties that are not genuinely available for rent, or which are
only available for rent for part of the income year (eg holiday homes).
Claiming deductions before a rental property is actually rented or available for rent.
The 6-month overlap rule for changing main residences – it has been identified that
the 6-month overlap rule for changing main residences may be incorrectly applied where
a taxpayer acquires a new dwelling (which is to become their main residence), and still
owns their existing dwelling for a period of time (eg there is a delay in selling the
existing dwelling or the existing dwelling is rented out to tenants).
CGT issues with “granny flats” and other similar backyard arrangements – with the
rise in Australian property prices, together with Australia’s aging population, there has
been an increase in the number of people using a granny flat or a similar unit of
accommodation as part of their family home (ie in the backyard). However, the CGT
treatment of such arrangements can be quite confusing, thereby potentially creating audit
traps for individuals who use a granny flat (or similar unit of accommodation) as part of
their family home.
Small business
On 30 June 2014, the ATO released its compliance program for 2015, which, not
surprisingly, shows its remained focus on the following key areas with regards to
business taxpayers:
 Property developers
Property related transactions remain a focus of the ATO as they announce an
audit assault on property developers and profits.
APPS
Sage Point and Claim
This is a free smartphone app which records your receipts. The app will allow you to:
 Photograph a receipt using your smartphone
 Automatically extract the data and categorize the receipt using optical character
recognition technology
 Confirm receipt data
 Append warranty details
 View saved receipts in your secure online portal
 Export the data to us and/or share via email
Australian Taxation Office
The Australian Taxation Office app puts tax help in your hand, making it easier for you
to conduct your personal or business tax affairs.
If you are an individual or small business owner you can track, work out, calculate and
find relevant tax information and tools in one place.
You can:
 Search for lost super
 Discover new ways to lodge your 2014 individual income tax return online
 Track the progress of your individual income tax return after you have lodged
 Work out if your worker is eligible for super guarantee (SG) and calculate SG
contributions
 Calculate fuel tax credit entitlements you can claim on your business activity
statement
 Work out if your worker is an employee or contractor for tax and super purposes
 Search Small Business Assist to find information on a range of topics or book an
after-hours callback
 Calculate the amount of tax to withhold from salary and wage payments
 See how quickly you can pay off a tax debt with a payment plan
 View income tax rates for the current financial year
Also, get answers to common questions and find out what’s new or what’s changed.
ATO Tax Calculator
A simple tax calculator. Now includes a tax refund calculator. If you have been offered
a new job, been given a yearly rate and want to calculate what will end up in your pocket
then this app is for you. Also, maybe you know what you get paid each fortnight but
need to calculate your yearly gross income, then again, this app is for you.
CHANGES AT TOLTON & CO
Web Site
Our new web site is now live!
Please check it out at www.tolton.com.au.
Bookkeeping Services
If you are struggling to maintain your business records we can help by providing
bookkeeping services at a cost of $50 per hour plus GST. We can assist you in
maintaining live records accessible via the internet using either your own software or we
can provide this for you.
Our services include preparation of BAS statements, tax records, payroll, debtors, and
creditors.
OFFICE HOURS
Availability at offices, generally.
FORRESTFIELD - Office hours are 9.00am to 5.00pm
MAIDA VALE -
Office hours are 9.00am to 4.00pm
KALAMUNDA -
Office hours are 9.00am to 3.00pm
After hours appointments are available at the above offices depending on demand. The latest
appointment available Monday to Friday is 8.00pm and Saturdays at 3.00 pm. Appointments
can be made by ringing 9359 1011.
Rob is away until Tuesday the 18th of August 2015 and up until this time Martin will take
appointments on Saturdays but there will be no after hours appointments. When Rob
returns he will be the only person available to take after hours appointments, including
Saturdays and Sundays, but will not be taking interviews during the day.
STAFF
Rob, Diana, Sharon, Martin, Ros, Belinda, Genny, Tessa and Sandra continue on from
last year. Sandy has returned to us after having a baby boy last August.
BANKFEEDS
The BankFeeds system which is attached to our current ledger software, HandiLedger,
allows us to receive your bank statements electronically. By using this system we can
transfer a large amount of the recurring transactions automatically into your accounts –
don’t you love technology! BankFeeds will benefit those clients who don’t like doing
their own bookwork. If we think you would benefit from this system we will send out
authorization forms for you to sign when we prepare your financial statements.
IMPORTANT INFORMATION - FEES
Remember that Tolton & Co charges on a time basis. To help lower your accounting
costs please provide us with all necessary documentation in a presentable manner. By
doing some of the basic clerical work yourself these costs can be further minimized.
Please note that our payment terms will be strictly 7 days. Payment can be made by
cash, cheque, and credit card or via the completion of our fee from refund authority.
For individual returns, if you are not paying on completion of your return you must
sign a trust account engagement. If payment is not received before refund is
received, it will automatically be deposited into our trust account and your fee will
be deducted. Please remember that an administration fee of $22.00 (GST included)
is charged for this service.
We look forward to seeing you soon and wish you the very best of luck in the new
financial year.
Kind Regards
From all the team at TOLTON & CO PTY LTD
Robert Tolton
Sharon Schussler
Martin Muriuki
Roslyn Armstrong
Belinda Tangney
Sandy Hu
Genny Tangney
Tessa Campbell
Diana Bullock
Sandra Preisig
Principal – BBus, PGradDipBus, CTA, FCPA, NTAA, Tax Agent
Senior Accountant – AdvDip(Acc), CTA, Tax Agent
Accountant – BBus, AdvDip(Acc), CPA, Tax Agent
Accountant – BBus, CPA
Accountant –Bbus, CPA
Accountant – DipComm, BCom(Acc), CPA
Taxation Consultant
Taxation Consultant
Office Administrator
Receptionist
PERSONAL INCOME TAX RETURNS - CHECKLIST
Please provide the following information for the period 1 July 2014 to 30 June 2015
INCOME
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Payment Summaries
Details of foreign employment income
Unemployment and pension income statements
Interest received with details of bank, branch and account numbers
Statements of dividends received showing any imputation credits
Statements of Termination Payments received from employers and funds
Details of casual earnings and any other income
Details of tax-free pensions
Details of any sales of real estate, stocks, shares or other investment property
We also require dates of acquisition and details of costs.
DEDUCTIONS
The following is a list of common claims. This is not a comprehensive list and there may be other claims
you are entitled to
 Gifts over $2 to registered gift recipients and approved school building funds
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 Subscriptions to trade unions and professional bodies
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 Personal sickness and accident insurance premiums
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 Self education expenditure connected with your employment. Claims include
Travel, fees (but not HECS), books and stationary.
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 Tools and equipment. Any replaced tool under $300 can be claimed outright
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And over $300 can be depreciated. We will need the date purchased for items
over $300.
 Uniform and protective clothing costs
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 Motor vehicle expenses.
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 Home office expenses.
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 Travel expenses in relation to the completion of your tax return. Provide details
of kilometers traveled to our office during the year.
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 Sunscreen, hats and sunglasses expenses.
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SPOUSE OFFSET
From 1 July 2014 taxpayers who were previously able to claim the dependent spouse offset, including
under the calculation for zone offset, will no longer be able to claim the dependent spouse offset. The
legislation has yet to be passed by Parliament.
Taxpayers with a dependent who is genuinely unable to work due to a carer obligation or disability will
continue to be able to claim the Dependent (Invalid and Carer) Tax Offset.
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ZONE OFFSET
If you lived or were traveling in a remote area of Australia for a total of 183 days or
more you may be able to claim a zone rebate. We will require name of township,
dates and number of days spent in zone areas. You will be able to claim a notional
spouse rebate, if claiming a zone rebate.
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MEDICAL EXPENSES OFFSET
Taxpayers who received the offset in their income tax return for both 2013 and 2014 will continue to be
eligible for the offset in the 2015 year if they have eligible out-of-pocket medical expenses above the
relevant claim threshold. Taxpayers who did not claim an offset last year will only be eligible to claim for
disability aids, attendant care or aged care expenses.
We will require details of relevant medical expenses including reimbursements
received to determine your claim.
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SUPERANNUATION CONTRIBUTIONS ON BEHALF OF YOUR SPOUSE
OFFSET
A rebate is available if you have made any superannuation contributions on behalf of a low
income earning spouse. In order to claim this rebate for you we would require details of the
contributions made and your spouse’s income.
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MEDICARE LEVY SURCHARGE
A Medicare levy surcharge still applies to those high income earners who do not have
the appropriate health insurance. If you do have private health insurance we will require:
Name of health fund
Membership number
Details of your dependants and whether they are covered by your health fund
Period of cover
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A private health insurance rebate is still available for eligible taxpayers that have private
health cover that have not already received a reduction in premiums. Your Health Fund should
send you a statement at the end of the financial year that will contain all the information we
need. Please provide this statement to us. This rebate is income tested.
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PRIVATE HEALTH CARE REBATE
CHILD MAINTENANCE EXPENDITURE
Deductible child maintenance expenditure is the amount of child support you pay to another person to
maintain your natural or adopted child following separation. This is used in calculating your adjusted
taxable income. From 1 July 2009 this will be used to work out your entitlement to any dependant tax
offset. Do not include any amounts you paid or provided to a person to acquire goods or services.
RENTAL INCOME
If you own a rental property, please provide the following information;
 Agent’s statements or details of rent receipts.
 Details of non-agent collections and inspections
 Statements of interest charged on monies borrowed
 Details of all payments in respect to advertising, repairs, maintenance, rates
and taxes etc
 If you bought or sold a property during the year, we will require a copy of
the offer and acceptance forms, copies of settlement statements and details in
connection with a new loan taken out or a loan discharged.
 If you bought a property during the year that was built after 18 July 1985,
we will require details of the cost of building the property.
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MOTOR VEHICLE EXPENSES
Cents per Kilometers Method
If you have used your vehicle for work, you can claim on a cents per kilometer
basis using rates supplied by the tax office. Please supply the following details:
 Make of vehicle;
 Engine capacity; and
 Number of business kilometers travelled in the year.
You can use this method to claim your expenses up to a maximum limit of 5,000 km.
Note that you must be able to show how you calculated the kilometers travelled.
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One-third of actual expenses method or log book method
If you have travelled more than 5,000 km for work related travel during the year you can claim one-third of
your vehicle running costs or a higher proportion established by a log book. A log book must be completed for
a period of 12 weeks and used to calculate a reasonable estimate of your business use.
If you have completed a log book in a previous year and have already determined a business percentage,
and business use has not altered by more than 10%, then you can use the percentage previously determined
PLEASE NOTE THAT NEW LOG BOOKS MUST BE COMPLETED EVERY 5 YEARS.
Please ensure that your log book details are still current. You should keep odometer readings for the
beginning and end of the year and provide us with amounts expended in the year for:
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 Fuel and oil;
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 Repairs and maintenance;
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 Registration and insurance; and
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 Loan or hire purchase interest.
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HOME OFFICE EXPENSES
If a room is maintained at home specifically for work or study, you can claim the additional running expenses
incurred. If claiming by this method we will require total expenses for the following:
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 Electricity at 34c per hour
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 Telephone a percentage used for work
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 Cleaning
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 Repairs to room
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If items of fixtures and fittings have been purchased for use in the office please provide cost price and date of
acquisition. Alternatively, you can use a fixed rate of 34cents per hour for home office expenses instead of
keeping details of actual costs. Diary records are acceptable evidence and it is recommended that you keep
diary records during a representative period and for a reasonable time, for example at least 4 weeks. If your
place of business is at home we will also require statements of the mortgage loan and details of insurance,
rates and any rent paid.
SUBSTANTIATION
The tax office demands that records are kept for all business expenses. Severe substantiation rules apply to
claims for motor vehicle expenses and travel expenses; therefore it is essential that you keep all your receipts
for these claims. You must also keep your tax invoices if you are claiming a credit for GST paid on purchases.
WORK-RELATED EXPENSES
You must keep a receipt, invoice or similar document showing the following information:
the date the expense was incurred, the name of the person or business who supplied the goods or services,
the date of the document, the nature of the goods and services supplied.
If you are making claims for work-related expenses, it is essential that you keep receipts or diary records. If
your work-related claims for the year (excluding motor vehicle expenses and expenses relating to allowances
covered by special rules i.e. overtime meal allowance, travel allowances and award transport payments) are less
than $300 no substantiation is required. However, if your total claim exceeds $300, inclusive of laundry
expenses, you must substantiate all the non-laundry expenses.
You may be required to produce the evidence to substantiate any claims if requested by the Commissioner of
Taxation and failure to do so will result in the loss of the deduction. The failure does not constitute a
prosecutable offence but additional tax may be imposed.
The relevant documentation is required to be maintained for a period of five years from the date of lodgment of
your returns.
BUSINESS INCOME TAX RETURNS – CHECKLIST
Please provide the following information for the period1 July 2014 to 30 June 2015
If you prepare your details on accounting software such as MYOB or Quickbooks please provide us with
a backup file by email or disk drive. Otherwise we will require the following reports:
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 Detailed general ledger printout
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 Summarised general ledger printout
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 Bank statements (if not reconciled)
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 Copy of bank statement as at 30 June (if bank account reconciled)
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 Trial balance
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 Profit and loss and balance sheet as at 30 June
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 Reconciliation of accounts payable (creditors)
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 Reconciliation of accounts receivable (debtors)
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 Bank reconciliation as at 30 June
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Please check these printouts prior to giving them to us to ensure that the reports are reconciled.
If you don’t use accounting software to prepare your business records we will require:
 Manual cash books/computer records/record of income and expenses
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 Bank reconciliation statement
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 Bank statements
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 A schedule of all debtors (money owed to you) as at 30 June, including
details of all bad debts, the amount of debtors should include any amounts
owing for goods on lay-by.
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 A schedule of all creditors (money owed by you) as at 30 June. We will
require details of the amount owing for each category of expense. This includes
wages, group tax, sales tax and payroll tax due at that date together with an estimate
of any accrued holiday pay.
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 Details of any deposits which are not sales
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 Bank statements for loans showing interest and bank charges
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It is of considerable assistance to this firm and a cost benefit to you if your records can be analyzed, added
and reconciled to the bank statements prior to presentation.
Other details required (if applicable)
 Stock on hand at 30 June, valued at the lower of cost, or net releasable
value. (excluding GST)
 Details of any plant or motor vehicles disposed of or scrapped during the year
 Odometer readings at the beginning and end of the year for all the vehicles
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Plant or motor vehicle acquisitions during the year including:
 Trade in values
 Hire purchase details
 Loan contract details and bank statements
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Where a business was purchased or sold during the period we will require:
 Offer and acceptance form for the purchase and or sale of the business
 Settlement statements
 Plant & equipment list
 New loan/discharge details
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