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What is a PAYG Instalment?   A PAYG instalment is an estimate only made by the Australian Taxation Office based on your previous years’ assessment and is essentially a prepayment of the tax liability.   The ATO will also determine how frequently you are required to pay these instalment amounts.   How do PAYG instalments affect my Annual Tax Return?   Upon lodgement of your Tax Return , the instalment paid will be credited against your actual tax liability to determine if additional tax is payable or a refund due.   Your PAYG instalment is greater than the actual tax liability After finalising the Annual Tax Return, if it is noted that the actual tax liability is less than the PAYG instalment amount already paid to the ATO for the Financial Year then upon lodgement of the Tax Return, you will be entitled to a refund from the ATO.   PAYG instalment is less than the actual tax liability If the actual tax liability is greater than the PAYG instalment amount...

Feeling charitable in the lead up to the festive season?  Whether you’re digging deep to support your favorite charity or dropping five bucks into a donation bucket, hang onto those receipts! You might be able to claim a deduction next tax time. For your donation to be deductible, it must be for $2 or more and made to what’s called a ‘deductible gift recipient’ (DGR). Organizations entitled to receive tax-deductible gifts are called 'deductible gift recipients' (DGRs). You can only claim a tax deduction for gifts or donations to organizations that have DGR status. The person that makes the gift (the donor) is the person that can claim a deduction. What is a DGR? A deductible gift recipient (DGR) is an organization or fund that can receive tax-deductible gifts. Not all charities are DGRs. For example, in recent times crowdfunding campaigns have become a popular way to raise money for charitable causes. However, many of these crowdfunding websites ...

Commissioner of Taxation – Notice of ATO Data Matching Program – Attention Uber Drivers The Australian Taxation Office (ATO) will acquire data to identify individuals that may be engaged in providing ride sourcing services during the 2016–17 and 2017–18 financial years. Details of all payments made to ride sourcing providers from accounts held by a ride sourcing facilitator will be requested from a financial institution for the 2016–17 and 2017–18 financial years. Ride sourcing facilitators provide an electronic platform enabling members of the public to engage the services of a ride sourcing provider (a driver). The data ATO acquire will be electronically matched with certain sections of ATO data holdings to identify taxpayers. ATO can provide them with tailored information to help them meet their tax obligations or to ensure compliance with taxation law. ATO will obtain the following data items from the source entity: Payee account name Payee BSB Payee ac...

TAX TIME MYTHS VS FACTS Here are some of the most common MYTHS relating to tax deductions – Myth:  I can claim home to work travel because I need to get to work to earn my income. Fact:  For most of us, home to work travel is a private expense. Myth:  Everyone can automatically claim $150 for clothing and laundry, 5,000km under the cents per  kilometer  method for car expenses, or $300 for work-related expenses, even if they didn’t spend the money. Fact:  There is no such thing as an “automatic” or “standard deduction”. Substantiation exceptions provide relief from the need to keep receipts in certain circumstances. While you don’t need receipts for claims under $300 for work-related expenses, $150 for laundry expenses (note: this is for laundry expenses only and does not include clothing expenses) or if you are claiming 5,000km or less for car expenses under the cents per kilometer method, you still must have spent the money, i...

Every company has an annual review date, usually the same date it was registered. Shortly after this date, Australian Securities & Investments Commission (ASIC) will issue an annual statement and an invoice. Companies must pay annual review fee to keep the entity registered. Business owners can check the review date for a company on ASIC’s Organisation and Business Names search. You will need to provide an Australian Company Number (ACN) to do the search.   If you don’t pay the annual review fee in time, you may need to pay additional fees. ASIC fees are not subject to GST. Note – ASIC annual review fees are deductible on tax return. Expert Tax are registered ASIC agents. We offer range of services to manage your ASIC accounts including submitting forms for making changes. Expert Tax also offers services to manage your ASIC correspondence at a small annual fee to ensure you don’t miss any correspondence from ASIC. Contact Expert Tax...

Own an investment property? Planning to buy an investment property? Not sure how negative gearing works and how it can benefit you? Then you must read this. Negative gearing means that the interest you are paying on the investment loan is more than the income. As a result you are making a loss. The Positives of Negative Gearing So, if negative gearing means that you’re making a loss, how can that be positive? Nobody wants to get into property investment to lose money. Even though most properties you buy will be negatively geared i.e. rental income is less than the interest repayments, the real benefit comes from the capital growth i.e. increased value of the property. Negative gearing can work if the money you make from the capital growth is greater than the loss you make in rental shortfall. And with negative gearing, you will still reap the benefits of tax reduction by offsetting negative gearing amount against your other income. Example John pays $20,000 i...

Expenses may be deductible for periods when the property is not rented out, providing the property is genuinely available for rent – that is: • The property is advertised, giving it broad exposure to potential tenants • Considering all the circumstances, tenants are reasonably likely to rent the property.   The absence of these factors generally indicates the owner doesn’t have a genuine intention to make income from the property. Factors that may indicate a property is not genuinely available for rent include: • It is advertised in ways that limit its exposure to potential tenants – for example, the property is only advertised: o    at your workplace o    by word of mouth outside annual holiday periods when the likelihood of it being rented out is very low • The location, condition of the property, or accessibility of the property, mean it is unlikely tenants will seek to rent it • You place unreasonable or stringent conditions ...

Updating your name with the ATO If you need to lodge tax returns under a new name that is not current on Australian Tax Office (ATO) records, the details will need to be updated before your tax return is lodged. The ATO has issued instructions regarding the steps necessary to change your name for Individuals and Sole Traders. You cannot change your name via the front page of the tax return, as you have in the past. If you do not follow the procedure mentioned below, processing of your tax return will be delayed by ATO.   You can do this by telephone or online: The quickest way to update your name is by using the online services for individuals. All you need is a myGov account linked to the ATO. Alternatively, you can call ATO to get this done quickly over the phone. Phone 13 28 61 between 8:00 am and 6:00 pm, Monday to Friday, and ask to be transferred to ‘Personal Tax Enquiries’. Whether you make the change online or by phone, make...