Understanding the distinction between a hobby and a business can be crucial in determining your tax obligations in Australia. Many individuals engage in hobbies that sometimes generate income, and it’s essential to understand when the Australian Taxation Office (ATO) might consider your activity to be a business, subject to tax. Myth of the Fixed Threshold […]
Private health insurance has become a popular topic when it comes to tax savings. It’s common to see advertisements or media campaigns promoting private health insurance as a way to save tax before June 30. While there may be some tax benefits for individuals who have an income above certain thresholds, the reality is that […]
Hey there! Are you looking for some great ways to spend your tax refund while also being eco-friendly? Look no further! With the Australian average tax refund amount of around $2,500, you can make a positive impact on the environment and your wallet. 5 Eco ideas Solar Panels Installing solar panels is a great way […]
As an accountant, it’s always important to consider the cost-effectiveness of different business practices, including whether or not to have a merchant facility. This topic was brought to my attention during a recent lunch outing with my wife. We visited a lovely vegetarian eatery that was part of a plant nursery in one of Adelaide’s […]
If you own a holiday home and rent it out to tenants, it is essential to understand the tax implications and how to apportion rental tax deductions. While renting out your property can generate significant income, it also means that you may have to pay tax on that income. In this blog post, we will […]
PAYG Instalments is a system that allows individuals to make regular payments to the Australian Taxation Office (ATO) to cover their annual tax liability. To be eligible for the instalment system, an individual’s income from their business and/or investments must be greater than $4000, and the amount due on their most recent Notice of Assessment […]
Superannuation Co-contribution The Australian Superannuation Co-contribution is a government scheme that encourages low and middle-income earners to save for their retirement. Under this scheme, the government will make a contribution to your superannuation account if you make voluntary after-tax contributions to your superannuation fund. To be eligible for the co-contribution, you must be a low […]
As from the 1st July 2012 changes are being made to the Medicare Levy Surcharge and the Private Health Insurance Rebate. The Medicare Levy Surcharge has always been a penalty for having a higher income and not having private health insurance. The levy now increases above the 1% of previous years to a new maximum of 1.5% if […]
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 to $34,000 […]
