As an accountant, I often receive questions regarding how much GST and vehicle expenses can be claimed for business purposes. One recent query came from Lilly, a full-time cereal farmer, who wanted to know how much she could claim on her new vehicle, a medium-sized SUV she uses for farm-related activities. Here’s Lilly’s question: “Hello […]
Investing in rental properties remains one of the most popular strategies for Australians looking to generate passive income and build long-term wealth. With Australia’s property market offering strong rental yields and relatively stable growth, it presents a compelling opportunity for individuals wanting to diversify their investment portfolio. Whether you’re a seasoned investor or someone just […]
It’s July, and you’ve received your PAYG payment summaries. Now it’s time to lodge your tax return and, if you’re fortunate, you might be eligible for a refund. In fact, the Australian Taxation Office (ATO) reports that the average tax refund in Australia is just over $2,800. While it’s easy to think of this as […]
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 […]
Save Tax by Getting Private Health Insurance Before June 30th Private health insurance has become a prevalent topic, especially when it comes to saving tax in Australia. With the end of the financial year looming, it’s common to see a surge in advertisements and media campaigns promoting private health insurance as a key strategy to […]
With the end of the financial year comes an exciting opportunity for many Australians — the tax refund. On average, Australians receive around $2,500 back from their tax returns, providing a perfect opportunity to invest in something beneficial. If you’re keen to make a positive impact on the environment while also being financially smart, you’re […]
Are Merchant Facilities Cost-Effective? As a business owner or manager, cost-effectiveness is a key factor when making decisions about which systems and tools to implement. One common dilemma for small businesses is deciding whether to offer card payment options through a merchant facility or to operate as a cash-only business. This choice can have far-reaching […]
Apportioning rental tax deductions becomes particularly important when the holiday home is used for both personal purposes and rental purposes. Many property owners use their holiday homes for their own vacations and rent them out to others during other periods. In such cases, the ATO requires that expenses be apportioned between personal and rental use. […]
PAYG Instalments: What You Need to Know PAYG (Pay As You Go) instalments is a system administered by the Australian Taxation Office (ATO) that allows individuals and businesses to make regular payments toward their annual tax liability. Instead of paying a lump sum at the end of the financial year, taxpayers can spread their payments […]
Understanding the Australian Superannuation Co-contribution: A Guide for Low and Middle-Income Earners The Australian Superannuation Co-contribution is a valuable government initiative designed to help low and middle-income earners save more effectively for their retirement. By making personal after-tax contributions to your superannuation account, you may be eligible to receive a co-contribution from the government, giving […]
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 […]