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THIS DOC IS A LIST OF LINKS, REFERENCES AND CALC FILES FOR INCLUSION ON A POTENTIAL WEB SITE FOR PRACTICAL USE
Links
ITP Training Website
To be provided Not yet linked to Website
Deductions for specific industries and occupations
https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Deductions-for-specific-industries-andoccupations/Deductions-for-specific-industries-and-occupations/
Home Office 45 cents per Hour with diary record of use over minimum 4 weeks per annum
https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Home-office-expenses/
calculators
https://www.ato.gov.au/Calculators-and-tools/?sorttype=SortByTopic&marketsegment=Entire%20Website
Motor Vehicle Calculator
http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Car.xr4&go=ok
Depreciation Rates use Effective Life
http://law.ato.gov.au/atolaw/view.htm?docid=%22ITD%2FEF20141%2F00001%22
Calculation of rate: 1 ÷ Effective Life x 100 x Method%; where Method% is 100% for Prime; 200% for Diminishing Value
Example: effective life 5 years using DV, Depreciation Rate = 1 ÷ 5 x 100 x 200% = 40%
Capital Gains Tax Property exemption tool
http://calculators.ato.gov.au/scripts/axos/AXOS.asp
Guide to Depreciating assets 2014
https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/ind39786n19960614.pdf
Demergers Calculator
http://calculators.ato.gov.au/scripts/axos/AXOS.asp
RESIDENCY TEST TOOL
http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Resident.XR4&go=ok
FOREIGN SOURCE INCOME
ATO Foreign Exchange Rates
Foreign income conversion estimate
http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Fo_In001.XR4&go=ok
Exchange Rates
https://www.ato.gov.au/Rates/Foreign-exchange-rates/
Tax Agent Portal - Sign in using your Tax Agent Number
www.tap.ato.gov.au
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DICTO Flow chart (Dependent (invalid and carer) tax offset)
https://www.ato.gov.au/forms/withholding-declaration---calculating-your-taxoffset/?anchor=Dependant_Tax_Offset#Dependant_Tax_Offset
MV Log Book Method – fuel costs
note most cars will average somewhere between 5 and 13 litres per 100km. For average fuel consumption they
refer to
http://www.environment.gov.au/settlements/transport/fuelguide/search.html
for fuel price they refer to
http://www.aip.com.au
PAYG Withholding Variation (221D) – may require software installation
https://www.ato.gov.au/forms/payg-withholding-e-variation/
Personal Services Income (NAT 72510)
Personal services income for companies, partnerships and trusts
Apply for a PSI Determination
Business stock for own use
http://atotaxrates.info/PDFS/td2015-009.pdf
Benchmark by occupation
https://www.ato.gov.au/Business/Small-business-benchmarks/In-detail/About/Small-business-benchmarks/
General ATO Info
Publications
Information for specific occupations
Taxation rulings, taxation determinations and practice statements
Starting and running your small business (NAT 1908 – Tax Basics)
Estimating your instalment income
Schedules
Tax File Number Application
ATO's List of Benchmarks for Small Businesses
Tax Help program
General info
ABN Lookup
Fair Work Commission - Find an Award
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Medicare levy Exemption Application Form
Dept Human Resources (Centrelink)
Departing Australia? Claim your Super
Exchange Rates
Computershare (share register)
Link Market Services (share register)
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References
HANDITAX REFERENCES: Rental properties Schedule
EXPENSE
CODE
Date First Rented
AMOUNT (WHOLE DOLLARS)
____/____/_______
Number of weeks rented
Weeks
RENTAL INCOME + other charges eg Water
$
Advertising for Tenant
D
$
Body Corporate Fees
E
$
Borrowing Expenses
F
$
Cleaning
G
$
Council Rates
H
$
Capital Allowances (Depreciation)
I
$
Gardening/Lawns
J
$
Insurance
K
$
Interest in Loans
L
$
Land Tax
M
$
Legal Fees
N
$
Pest Control
O
$
Property Agent Fees
P
$
Repairs & Maintenance
Q
$
Capital Works
R
$
Stationery Telephone and Postage
S
$
Travel Expenses
T
$
Water Charges
U
$
Sundry Expenses
V
$
SEE ALSO: Rental Properties 2014
Rental properties
+$
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GST
Business Activity Statement (BAS)
How to Complete (note – Boxes are borders with full stops in white text)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Option to Lodge Quarterly
Label G1 Sales
Does the amount at G1 (Sales) include GST?
Label G10 Capital Purchases (Assets purchased)
Label G10 Non-Capital Purchases (everything else)
Label W1 Salary, Wages and Other Payments
Label W2 PAYG Amount withheld from W1
Label W5 Total Amounts Withheld (same as Label 2)
Label 1A GST on Sales
Label 4 PAYG Tax Withheld
Label 1B GST on Purchases
You owe Us
.
We owe You
.
Y.
.
.
.
.
.
.
.
.
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.
.
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.
.
.
.
How to Lodge
https://www.ato.gov.au/business/business-activity-statements-(bas)/lodging-and-paying-your-bas/how-to-lodge-your-bas/
GST Food list
https://expertsystems.ato.gov.au/scripts/net/SearchableFoodList/scSearchableFoodList.aspx?PID=68&ms=Businesses
The Tax Invoice
https://www.ato.gov.au/business/bus/how-to-set-out-tax-invoices-and-invoices/
A valid Tax Invoice must contain:
a. a clear label 'tax invoice'
b. the supplier's name
c. the supplier's ABN
d. the date of issue
e. the buyer's name
f. the buyer's ABN or address
g. a brief description of the items or services sold
h. the total price of the sale
i. an indication whether
i. the GST-exclusive amount and the GST amount are shown separately; or
ii. whether the GST-inclusive amount is noted as including GST
j. Additionally, in the event that a tax invoice lists both taxable items and GST-free items, to be
able to claim credits the tax invoice needs
i. identification each taxable item
ii. the GST part of the total payable
Invoices for less than $1,000 need to have all the above but not the buyer's details.
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The dollar thresholds for tax invoices refer to the taxable items only.
From July 1, 2010, the hard-and-fast rules have been relaxed somewhat (see below).
Every business registered in the GST system needs to issue a valid tax invoice if a purchaser asks for one, but
also for any taxable sale made that is more than $75.00 Excluding GST ($82.50 Including GST).
And to be able to claim a GST credit for transactions that are less than $75.00, you'll need to have cash register
dockets or receipts to support your claim.
Input Taxed Supplies
https://www.ato.gov.au/business/gst/when-to-charge-gst-(and-when-not-to)/input-taxed-sales/
GST-Free Supplies
https://www.ato.gov.au/Business/GST/When-to-charge-GST-(and-when-not-to)/GST-free-sales/
How to avoid Common GST Errors
https://www.ato.gov.au/general/other-languages/in-detail/information-in-other-languages/gst---avoiding-common-errors/
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Comprehensive guides
Cars
(This only applies to motor vehicles whose carrying capacities are 1 ton or less or fewer than 9 passengers.)
Travel to and from work is usually not a tax deduction.
Some exceptions are:
1. Carrying bulky equipment with no secure lockup at work.
a. Bulkiness of equipment is determined by size & weight. For tradesmen it could mean a
minimum of a 40 kg tool box plus other items e.g. nail guns, drills, drop saws, materials, etc.
Bulkiness is also determined by size e.g. Ladders, bench horses, large oil drums, spare tyres, etc.
If in doubt ask for a private ruling.
2. Travel between two places of work.
3. Travel to attend meetings and then to home or work.
4. Travel from home or work to see clients and then back to home or work.
5. Some travel to a place of education.
6. When you travel overnight for work.
Most clients should use the log book method or the set rate per kilometre method. Often the Log Book method
will provide a better return, but substantiation is more onerous.
Method 1 – the Log Book Method
You must keep a log book for 12 weeks for each car, and it is valid for 5 years. The odometer records in the log
book are used to determine the “business use percentage”.
1. You must start a new log book when:
a. you change cars or
b. the “business use percentage” changes by more than 10%.
2. You must have written evidence for registration, insurance, services, repairs, depreciation, interest,
lease payments, RACQ, car washes etc.
3. Clients do not need to bring receipts to the interview, but instead should bring a simple summary of:
4. From the Log Book:
a. Opening and Closing odometer reading for the financial year
b. Log book % and business kilometres travelled
5. Total expenditure for the year for each of
a. Fuel
b. Registration
c. Insurance
d. Repair costs, including servicing, tyres, and insurance excess payments
e. Road membership eg. RACQ
f. Car washing and cleaning costs
g. Car finance costs - either:
i. Any applicable Loan Interest
ii. Any applicable hire purchase or loan agreement and payments made
h. Details of Depreciation (from your last tax return)
i. date of purchase
ii. copy of purchase contract
iii. Small Business only: If purchased after 12th May 2015 and < $20,000 then an
immediate write-off is available.
6. Costs of any other car-related travel costs
a. Parking charges
b. Tolls
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NOTES
1. Costs that are NOT allowable deductions include
a. Licence costs
b. Fine and penalty costs
2. You may claim $200 worth of items costing < $10 without receipts.
3. You do not need receipts for fuel, but can use a reasonable estimate based on
a. The business kilometres travelled from the log book
b. The average fuel consumption of the vehicle from the ABS web site or other authority
c. The average cost of fuel from the ABS web site or other authority
d. For example: a vehicle travels 15,000Km for business, consumes 8 L/100km, costing $1.45/L
e. Therefore (15,000km ÷100) x 8L/100km = 1,200 litres x $1.45 = $1,740
Method 2 – Set Rate per Kilometre Method
Motor vehicle tax receipt exception: ‘set rate per kilometre method’ between 65c and 77c per kilometre (based
on engine size) x up to 5,000 kms.
You must be able to work out your estimate by using a diary or regular pattern of travel.
Method 3
12% of cost price of car (must have travelled over 5,000 business kms)
Method 4
1/3 of actual expenses (must have travelled over 5,000 business kms)
Example:
James is a carpenter and carries bulky equipment to and from work as there is no secure lock up on site. James
has kept a log book for 12 weeks which shows his work travel is 95%. James purchased a Toyota Hilux which has
a 2 litre engine on 01/07/2011 for $25,000 which he financed through a hire purchase chattel mortgage at an
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interest rate of 9%. His odometer reading on 30 June 2015 was 25,000 kms and his car does 500 kms on a 55
litre tank of petrol. The average cost for petrol in QLD was $1.54 per litre.
Method 1 - Log Book
Fuel 25,000 kms/(500kms/50 litre tank) x $1.54 per litre =
Registration
Insurance
Interest on loan $25,000 x 6%
Repairs, services & tyres
Depreciation $25,000 x 25%
Breakdown service RACQ
Car washing and cleaning
Total Cost of owning and running the vehicle
Tax Deduction based on log book use 95% Business
$
$
$
$
$
$
$
$
$
$
3,850
680
650
1,500
900
6,250
96
120
14,046
13,343
Method 2 - Set rate per kilometre (maximum claim up to 5,000 business kms)
Business kms 25,000 kms x 95% = 23,750 kms
Limited to 5,000 kms x 76c (rate for 2 litre engine size)
$
3,800
Method 3 - 12% of cost price of car (must have travelled over 5,000 business kms)
Cost price of car $25,000 x 12% = $3,000
E.g. Tax refund x 34c (tax rate $37,000 to $80,000)
$
1,020
Method 4 - 1/3 of actual expenses (must have travelled over 5,000 business kms)
Total expenses $14,046 x 1/3 = $4,682.00
E.g. Tax refund x 34c (tax rate $37,000 to $80,000) = $ 1,591.88
James chooses Method 1 because he will receive the largest tax refund.
ATO Practice Statement LA 2005/7
In some circumstances BPAY and internet banking statements may include sufficient details to support the
correctness of your claims. Suppliers may not issue a receipt containing all the information required by the
substantiation legislation. However you may use a combination of other documents to support your claims.
e.g., Hilton, QANTAS, McDonalds, etc. plus a break up of expenses, etc.
In some cases if a credit card statement has the date of the transaction, the name of the supplier and the
amount paid and you make a note on the credit card statement detailing the items purchased with their
respective prices, the Tax Office may accept this as sufficient evidence.
The above does not apply for EFTPOS transactions because bank statements do not show cash withdrawals
separately.
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Files
1. Cheat sheets:
a. Date Calcs
b. Motor Vehicle
2. Calculators
a. Individual M-Veh disposal (multiple methods)
b. Balancing Adjustment on M-Veh
c. M-Veh Log Book
3. CashBook
Notes
Valuation of assets as part of an Acquisition of a “Going Concern”
http://www.api.org.au/folder/code-of-professional-conduct/market-value-of-property--plant-and-equipment-as-part-of-agoing-concern-business
Enterprise agreement
https://www.fwc.gov.au/awards-and-agreements/agreements/findagreement/results?AGREEMENT_TITLE=javdar&STATE=All&INDUSTRY_1=All&AGREEMENT_ID=&sqlsrv_combine=&ODN=&OL
D_PUB_CODE=&PRINT_ID=&ABN=&=Search
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TAX OFFSETS
Low Income Tax Offset (“LITO”)
The purpose of the LITO is prevent low income earners paying tax. It effectively lifts the minimum tax
threshold.
Medical Expenses Tax Offset
This is a 20% offset (10% from 1 July 2012 for higher income earners) provides tax relief for taxpayers
with high medical expense to claim in their tax return.
Private Health Insurance Rebate (Refundable)
This offset provides a tax subsidy of private health insurance premiums
Mature Australian Workers Tax Offset (“MAWTO”)
This offset provides up to $500 for Australian resident workers over the age of 55 years at 30 June.
Senior Australians and Pensioners Tax Offset (“SAPTO”)
The SAPTO is a tax offset available to age and service pensioners, and self-funded retirees of age
pension age.
Beneficiary Tax Offset
The beneficiary tax offset is available to taxpayers who receive certain taxable government benefits. If
the ONLY income you receive is from eligible allowances, the beneficiary tax offset will ensure that you
pay no tax.
Spouse Super Contributions Tax Offset
This offset of up to $540 in value is available for eligible contributions made by a contributor to his or
her spouse’s complying superannuation fund
Dependant Spouse Offset
The Dependant Spouse Offset is being phased out. From 1 July 2011 the dependent spouse tax offset
has restricted eligibility.
Invalid and Carer Offset
Available to taxpayers who maintain a dependant who is genuinely unable to work due to invalidity or
carer obligations.
Entrepreurs Tax Offset (“ETO”)
The entrepreneurs’ tax offset provides small businesses with a maximum tax offset equal to 25 per cent
of the income tax on their business income. The offset ends 30 June 2012.
Education Tax Rebate (“ETR”)
The Education Tax Refund has been replaced on an ongoing basis by the School Kids Bonus which is to
commence in January 2013. As part of the phasing out arrangements, a lump sum payment for 2011-12
has been paid in June 2012.
Zone Tax Offset
The zone rebate or offset is for residents of specific areas within or near Australia for more than 183
days; and the overseas defence forces tax offset which is for ADF or U.N. forces in overseas localities for
more than 183 days.
Delayed Income Tax Offset
The delayed income tax offset is to compensate for the tax spike that occurs when a lump sum income
amount received within the year is made up of amounts which have accrued in earlier year(s).
Franking Credits Offset (Refundable)
Franking credits are a refundable tax offset, which means that if no tax is payable, you can get a refund.
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Disclaimer:
This project represents a collection of works from various sources, including students of Taxation and Accounting. No right of any type, whether
express or implied, passes as a result of the use of material accessed from this site to any person whatsoever.