Redundancy – Tax Pitfalls
Although payroll departments typically calculate redundancy and termination payments accurately, mistakes can occur. Unfortunately, these errors can sometimes be significant, with miscalculations exceeding thousands of dollars in some cases. As such, it’s wise to have a tax professional review the calculations to avoid potential costly errors. Note: This information is for general guidance only and […]
ATO Hit List – Tax Pitfalls
The ATO is aware of fraudulent emails and SMS messages that may appear to be from an @ato.gov.au or similar senders, falsely claiming to be sent from the ‘Australian Tax Office.’ If you receive such emails or SMS messages, please do not open any attachments or click on any links, and promptly delete the email […]
Uniform – Tax Pitfalls
When it comes to claiming work uniform expenses, taxpayers frequently make errors, such as: – Failing to retain receipts for uniform purchases and dry cleaning to support their claim – Attempting to claim expenses for clothing that is conventional and not unique, distinctive or compulsory – Insufficiently connecting their clothing to how it is related […]
Travel – Tax Pitfalls
The expenses incurred for the travel of your spouse and family during work-related trips are not deductible. If any expenses cannot be distinguished separately, they must be reasonably allocated between private and deductible expenditures. Note: This information is for general guidance only and may not suit your individual circumstances. Please consult a qualified professional before […]
Your Employment : Car Usage – Tax Pitfalls
Common errors made while claiming car expenses: – Insufficient evidence to validate the claimed expenses – Imprecise estimation of business usage – Incorrectly claiming deductions for commuting between home and work Note: This information is for general guidance only and may not suit your individual circumstances. Please consult a qualified professional before taking action.
Family Trust – Tax Pitfalls
The Australian Taxation Office (ATO) disapproves of trustees who allocate net income to specific tax-advantaged beneficiaries only on paper, without actually receiving any payments from the trust. Note: This information is for general guidance only and may not suit your individual circumstances. Please consult a qualified professional before taking action.
Childcare – Tax Pitfalls
The No Jab No Pay law states that you will not be eligible for the Childcare Subsidy if your children (up to 19 years of age) fail to meet the immunisation requirements. Your child must be completely immunised, on a catch-up schedule, or have a legitimate exemption to receive these payments. Keep in mind that […]
Dependant (Invalid and Carer) Tax Offset – Tax Pitfalls
According to the Australian Taxation Office, the “adjusted taxable income” refers to the total of the following amounts: taxable income adjusted fringe benefits tax-free pensions or benefits income from overseas not reported in your tax return reportable super contributions total net investment loss for financial investments and rental properties. Child support payment made are deducted […]
Marriage – Tax Pitfalls
When determining eligibility for benefits from the Family Assistance Office such as childcare rebates and family tax benefits, the total income of married couples is taken into consideration. Additionally, if the couple earns a combined income of over $180,000, they will be subject to an additional 1% Medicare levy. This levy increases to 1.5% for couples earning more than $280,000 if they do not […]