You have just spent a relaxing time with your family in your favourite holiday destination, and you are thinking, wow this would be an ideal place to purchase a holiday home for future vacations and as an investment for retirement. To offset the expenses of running your holiday home, your plan is to have the holiday home available for rent for most of the year and use the home for your holidays for some of the year. How does the Australian Taxation Office deal with a situation like this, do they allow you to claim any deductions against the holiday home rental income? [...]
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The Australian Taxation Office replaced its software in January, and because of this any tax returns lodged were not going to be processed till February 1st. I contacted the ATO on Monday and was informed that the software update didn’t go as planned and that instead of the 1st being the start of [...] The Australian Taxation Office (ATO) has begun to accept credit card payments for debts between $10 and $10,000. The ATO will accept Visa, Mastercard or American Express and will charge a card payment fee of .67% for Visa and Mastercard and 1.02% for American Express. On a $10,000 payment the fee will be $67 for [...] I had an appointment with a prospective client recently, who has just recently arrived in Australia and was preparing his first tax return. His friends had suggested that, as it is his first tax return, he would get all the tax paid during the year back. As the interview progressed I pointed out [...] I am currently working on a client, that has not lodged a tax return since 1996. When you prepare tax returns over a 14 year period in a single sitting, you notice some real changes to the tax rates. For instance from 1st July 2009 the Low Income Tax Offset starts to reduced at [...] The Australian Taxation office has sent you a letter saying that you now have to pay PAYG Instalments. This has happened because, your gross business or investment income has been greater than $2000. If previously your gross business or investment income has been greater than $2000 and you have not bee put on PAYG [...] What tax bracket are you in, below is a table that shows the current rates for the financial year ending on the 30th June 2009. MYTH: The tax rate applies to all income once you are over the threshold, if your income is $50,000 then your tax rate would be 30% of the whole [...] What many forget about tax deductions is, that they actually reduce your income as well as reducing your tax. Currently (2007-2008) if your taxable income is between 30k & 75k your rate of tax is 30%. If you spend $1000 on an allowable deduction you will reduce the tax payable by $300, so you [...] |
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