ABN 83 441 523 120
Postal Address –
PO Box 568
Castle Hill NSW 1765
Office Address –
59/15-17 Terminus Street
Castle Hill NSW 2154
Lynette J Beddow NTAAF
Peter J Beddow NTAAF
Tele – 02 9659 8174
The items contained in this Memorandum are a brief resume of matters of concern to you. It is your responsibility to ensure that your records and business affairs are in order. We would be happy to assist you if you require more information or clarification on ANY matter.
INCOME that MUST be included in Tax Return
(Received 1 July, 2013 – 30 June, 2014)
Please provide ALL documents in relation to the
EXPENSES that may be Deductible......Cont.....
-Trade journals & work magazines
Uniform
– Must be occupation specific or monogrammed. following Income received during the year -
- Salary & Wages – PAYG Summaries
- Paid Parental Leave
– PAYG Summary
- Employer Lump sum & termination payments
(Plain black trousers/white shirt etc not allowed)
Laundry costs are claimed at $1 per load if washed
separately or $0.50 per load if with family wash. You need
a diarised note of the number of loads for the year.
- Govt Pensions, Youth Allow, Newstart, Austudy etc
(From June, 2013 paper copies of PAYG Summaries
will not be issued
– please remember to print all
online Forms sent to you).
- Tax Free Govt Pensions
– Carers etc
Dry cleaning - you MUST have receipts
-Tools of trade & equipment <$300
- Superannuation & Annuity Income Streams
- Tax Free Super/Pensions( used to calculate
“ATI”)
- Superannuation Lump Sums
- Interest from ALL sources
- Dividends from ALL sources (paperwork essential)
- Dividends re-invested
- Equipment >$300 will be depreciated
- Insurance – Sickness & Accident
- Computer costs
– paper, cartridges, USB’s etc
- Stationery, postage
- Telephone
– calls from home + mobile
- Internet – need 4 weeks business/private diary
- Home Office costs. Must be dedicated room (not a
Bedroom). Claim $0.34 per hour. MUST have log
- Sunscreen Protection & Hat if employed outdoors
- Professional Development courses.
- Rent received & related expenses
- Employee Shares – new & existing.
( Print everything your employer emails you).
- Foreign Income – wages, rent, interest, pensions etc
(This includes ALL world wide Income)
- Gifts & Donations (must have receipts)
- Overtime meals
– if award allowance provided
Remember
– documentation is key to these claims
We MUST have copies of all receipts & log books
- Partnership & Trust distributions
- Sales of Assets – shares, inherited assets, property etc
(Contract date is Sale date – NOT Settlement date) to substantiate ALL claims
- Sale of Antiques & Collectables (stamps, coins etc)
- Bonuses from life insurance
- Business Income
- Forestry scheme income (even if overall loss)
- Any other Income received during the year.
EXPENSES that may be Deductible
You MUST provide evidence
– receipts, log books etc to substantiate your claim for ALL expenses.
- Car Expenses – Claim either
- Log Book up to 5,000km at ATO rate OR
- Actual business % based on log book & actual costs
-
You can claim km’s to visit Tax Agent
- Must own the car to claim car expenses
FOR THE YEAR 1 JULY, 2013 - 30 JUNE, 2014
- Health Insurance Rebate – This is calculated based on your “ATI” previously 30%
See Rate Sheet attached, for details of how this will affect you.
You may receive a tax bill you weren’t expecting if you have
been claiming the incorrect Rebate from your Health Fund.
Medicare Levy Surcharge
–
Where no Private Health Cover
– see Rate Sheet
- Concessional Superannuation Contributions will be taxed at 30% where your “ATI” exceeds $300,000.
Dependant Spouse Rebate not available for Spouse
born after 1/7/1952, except where zone rebate applies.
- Annual PAYG Instalment for 2014 year due 21/10/14
- HelpDebt - removal of discount for upfront repayment
- Car use MUST comply with guidelines. Home to work
not deductible & to carry bulky goods very limited
You need to provide us with -
- annual log book for up to 5,000km OR
- current log book for 13 consecutive weeks (not more
than 5 years old) & copies of all car expenses
– fuel,
regn, ins, repairs etc
- Travel Expenses – Local & Overseas
Provide copies of receipts or diaried note of costs for
train, bus, air, accommodation, meals. If you are using the
PSA Rates you MUST have received an Allowance.
If away more than 6 nights you MUST have a Travel Diary.
Self Education . Must be directly related to CURRENT
employment. Costs include
– other fees (not HEC’s), travel
student fees, books, internet, stationery, telephone etc.
From 1 January, 2014
- Superannuation Contribution limit increased
–
see
Rate Sheet
Medical Expenses Offset – see rate sheet for rates.
If you did not claim in 2013 your cannot claim in future.
Obtain annual summaries from Medicare, Health Fund
& Chemists. Plus costs not covered by Medicare or Funds
Net medical means - see Rate Sheet for detailed list.
ETP ’s up to $175,000 are taxed at 15%. However if your other
Income for the year exceeds $180,000 the ETP will be taxed at
46.5%. This is something you will only find out on preparation of
your Tax Return & could result in a large tax bill!!
** Medicare Levy increases to 2% from 1/7/14**
SUBSTANTIATION
You MUST have ALL receipts for ALL your claims. Where diarised
-Conferences & Seminar costs
-Union Fees & Other subscriptions
-Professional Books notes are used – please summarise. Estimates MUST be factual calculations – NOT GUESSES

TO DO - BEFORE 30 JUNE, 2014 OR AT 30 JUNE, 2014
- If working - Wages/Salary/Self-Employed contribute $1,000
to superannuation from after tax Income to obtain Govt.
Co-contribution of $500. See “ATI” limits in rate sheet
-.Claim your entitlement to Family Tax Benefits for the year
ended 30 June, 2013.
-Review salary packaging to ensure no excess super
Contribution has been made.
DONATIONS
- not deductible if you receive a benefit e.g. raffle, lottery
- not deductible to Political Parties if made by business.
If made privately capped at $1,500.
- donations where you receive some benefit e.g. dinners
may be partly deductible . Please discuss
- bucket donations can be claimed equal to the amount
given, to a maximum of $10 in total.
-not entitled to deduction if donation via salary sacrifice.
EMPLOYEE SHARE SCHEMES
–
ALL discounts on Employee Shares & Options will be taxed in the year of acquisition (upfront) with no election/choice possible. The $1,000 reduction on discount is still available providing Employer meets all the conditions of issue and your
“ATI”
is less than $100,000
Employers are now required to provide full details of
Employee Shares, Discount and Taxing Methods.
Please print & retain ALL emailed documents.
TRAVEL HOME TO WORK
– RE BULKY GOODS
Will only be allowed where ALL of the following are satisfied –
-the equipment is required for the employee to carry out their
duties on that particular day, AND
-the equipment is sufficiently bulky and/or heavy so as to make it impractical to transport other than by use of employee’s
own vehicle, AND
-there is no reasonably secure storage area provided by employer for storage of the employee’s equipment
SUPERANNUATION
- Ensure ALL contributions received by Fund before 28 June.
- All superannuation after age 65 must satisfy work test
- Cannot contribute after 75 years age.
-Eligible for Govt Super Co-Cpontribution
– up to $500 where Adjusted Taxable Income “ATI” less than $33,526
& phasing out at “ATI” og $48,516
-
“Work test” – 40 hrs in 30 day period. Can then contribute
any time in that year until 28 days after turning 75.
- MUST have Binding Death Nominations updated every 3 yrs.
- MUST have letter from your Fund confirming that you will be
claiming a tax deduction for your personal contributions.
- Superannuation paid to overseas Super Funds do not qualify
for any of the above benefits as they are deemed to be
Non-complying Funds.
PRIVATE RESIDENCE AND TAXES
Renting
– if you rent part of your private residence you may be liable for Land Tax and Capital Gains Tax on that portion.
Use as Office
– if you use part of your home as an office you may be liable for land tax and capital gains tax on that portion, even if you do not claim any of the holding costs e.g. interest, rates & insurance etc.
Land Tax & Hobby Farms – To claim the land tax exemption for primary production you must satisfy 3 criteria –
-dominant use of land must be for primary production for sale.
-use of land MUST have significant & commercial purpose
-the activities MUST be for profit on continuous basis
ATO AUDIT AREAS FOR 2014
-Work related expenses of –
- building & construction project managers & supervisors
- labourers
- sales & marketing managers
-Travel home to work with bulky goods
- Overnight travel claims
CAPITAL GAINS TAX (CGT)
- applicable to investments (shares, property, trust units,
antiques, stamps, coins etc)
Purchased after 20/9/85
- assets from deceased estate have a cost base of -
- if purchased by deceased pre 20/9/85 then you acquire
the asset at its market value on the date of death
- if purchased by deceased post 20/9/85 then you acquire
the asset at the price & date of purchase by deceased.
(please ask Trustee of Estate for cost base details in writing)
- assets held for more than 12 months are only taxed on
50% of the profit (No discount if held by Company)
- assets held less than 12 months are taxed on 100% Profit.
- distribution on marriage breakdown MUST be under Court
Order for roll-over relief to apply
- share takeovers sometimes trigger CGT.
- Tax Deferred distributions from Trusts reduce the cost
base of your investment - please keep all paperwork
- if you don’t know the cost of an Asset the Tax Office
could deem it to be $0
- Capital gains on overseas assets are taxable in Australia.
- date of sale is date of contract – not date of settlement
- any First Homer Owners Grant received MUST be
deducted from the cost base for CGT calculations
RENTAL PROPERTIES
- If you buy a new rental property remember to obtain
details of costs from builder, vendor or quantity
surveyor so that depreciation can be correctly claimed.
- if property used by you personally, by an associate or
vacant and not available for rental, then you can only
claim expenses for the number of weeks available for
full paying rental.
- if property let to an associate at lower than market value
then rental deductions will be limited to rent received –
No loss recognised.
- Strata levies paid for specific capital works are not
deductible when paid. MAY form part of the cost base.
- prior to 30 June consider prepaying some expenses
(only up to 13 mths in advance) on items such as interest.
- repairs must be carefully differentiated between actual
repairs & improvements. A repair is restoration of an
item by renewal or replacement of defective parts and
not of the item as a whole.
Repairs to recently acquired property form part of the
purchase price. Remember – keep all records of
purchase, renovation etc.
-Foreign Rentals – conversion rates
- Income & Agents Costs at ATO Average Annual Rate
- Other expenses at spot rate at cost date
The ATO produces a booklet on rental properties that is a
guide to deductible expenses. We have copies available
FOREIGN SOURCE INCOME – Australian Residents
Pensions, Interest, Employment, Shares, Other Assets, etc.
These must be included in your Income Tax Return even if you did not receive the money in Australia.
Foreign employment income must also be declared in your
Australian Income Tax Return.
It is now fully taxed in
Australia and a credit is allowed for the foreign tax paid and a deduction for direct expenses, similar to those expenses you would be allowed in Australia. You will need to have detailed records of this as foreign countries have different tax years to
Australia, so calculations of Income, Allowed Expenses and
Tax Credits will be involved.

FEDERAL BUDGET
– MAY 2014
(Not law yet)
2013 Budget Items Scrapped –
-Self Education limit of $2,000
-Extra tax on Super earnings > $100K
From 14 May, 2014
-New First Home Owners Saver Accounts scrapped
-Co-contributions cease from 1/7/14
-Tax concessions for current Accounts cease 1/7/15
-From 1/7/15 funds can be withdrawn
From 1 July, 2014
- Trade Support Loan of up to $20,000 over a 4 year
Apprenticeship. This will be repayable like HELP.
-Tax Increase of 2% where Taxable Income > $180K
-Dependant Spouse Offset abolished (currently only
available for spouse born before 1/7/52)
Mature Age Workers Tax Offset for over 55’s abolished.
From 20 September, 2014
-Abolition of Seniors Supplement to Retirees who
d on’t get Age Pension but have a Health Card
From 1 January, 2015
-Tax Free Superannuation Income counted in Income
Test for Commonwealth Seniors Health Card
From 1 July, 2015
-$7 Contribution to see Doctor, Pathology & Out of
Hospital Imaging. Charge limited to 10 services p,a
for children & concession card holders.
-$5 Contribution for Scripts - $0.80 for children &
Concession card holders.
-Changes to Family Tax Benefits
From 1 July, 2017
-Changes to Pensions
-Paid Parental Leave capped at Income of $100K
HOW TO REDUCE YOUR ACCOUNTING FEES
- Supply ALL details initially.
- Obtain yearly interest statements from Banks, etc
- Supply ALL documents regarding Dividends, Dividend
re-investments, Trust Distributions, Sale & Purchase of
Shares, Trust Units, Property etc.
- Supply details of all work related expenses, receipts or diary
notes & log of business/private %
- Summarise ALL Motor Vehicle expenses/Log book etc.
- Summarise and add ALL expense deductions
– telephone,
electricity, postage stationery etc.
- Supply Health Fund Statement
- Supply completed Checklist and other documents this may
identify as required.
- All other items as above
Personal Checklists have been included with this
Memorandum and MUST be completed and returned to us prior to commencement of your 2014 Income Tax Return.
PRIVACY ACT
If you require us to provide information to a third party you
MUST now instruct us in writing including the specific information to be supplied.
DATA MATCHING
The Tax office now data matches with - State Revenue
Offices, Land Titles Office, Share Registries, RTA, Government
Licencing Authorities, Overseas Revenue Agencies & Financial
- Completed CHECKLIST sent to you with this Memorandum.
- PAYG summaries
- Interest /Dividend Statements & re-investments
- Trust Distribution Statements
- Centrelink Certificates ( print electronic certificates )
- Paperwork on sale shares, property etc + paperwork on
purchase of that asset.
- Work related expense claims
– summarised including
receipts/log books etc.
- Private Health Insurance Certificate
- Medicare Statement of expenses & refund for year
- Health Fund Statement of expenses & refund for year
(please obtain these before you see us)
- Summary from Chemist of deductible Scripts for year
- Current log book
- All paperwork on employee shares issued during year
- Other paperwork in accordance with checklist answers
PLEASE NOTE
There is a Tax Amnesty in respect of undeclared
Foreign/Overseas Income until 29 December, 2014
Information is current at time of printing
No person should rely on the contents of this Memorandum without first obtaining advice from a qualified professional. The publisher expressly disclaims all and any liability and responsibility to any person in respect of anything and of the consequences of anything, done or omitted to be done by any such persons in reliance, whether partially, upon the whole or any part of the contents of this
Memorandum.