• To avoid tax hassles, keep your tax records for 5 years from the date you lodge your tax return.
• You're entitled to claim up to $300 of work related deductions without a receipt.
• You may be able to claim depreciation on items of equipment used for business or employment purposes.
• Non-profit organisations are not required to pay GST on gifts they receive and the value of gifts is not included when they work out their GST turnover.

How do tax rates work?

Tax rates are divided into two categories – Residents tax rates and Non-residents tax rates. Non-residents pay tax on every dollar of taxable income as declared on their tax return but do not pay Medicare surcharge. Residents have to declare all income earned in and out of Australia. A tax free threshold of $6000 is available to them and a resident may be entitled to claim some tax offsets. Subject to their income, a resident may also have to pay the Medicare levy and Medicare levy surcharge.

How can I reduce my tax bill?

A common approach in Australia that people adopt to reduce their tax bill is known as "Salary Sacrificing". It is an arrangement between an employer and an employee, whereby the employee agrees to forgo future entitlement to salary or wages in return for the employer providing them with benefits of a similar value.

How do I apply for a tax file one?

Tax File Numbers are issued by the ATO and are used for the identification of tax records. In order to obtain a TFN you must provide evidence of your identity to the Tax Office. Application forms are available from the Tax Office or alternatively you may download a copy of the application form from the ATOs website. The completed form must then be returned to the ATO together with original proof of identity documents. After a careful examination of your documents, they will be returned to you and your tax file number will be issued within 28 days.

When should I complete my tax return?

It is important that your tax return is lodged before October 31st. If you are leaving Australia for holiday purposes and won't be back until after the lodgement date, contact the ATO or your tax agent to apply for an extension of time.

What is the difference between Medicare levy and Medicare levy surcharge?

Medicare is the scheme that provides Australian residents with access to health care. To fund this scheme, resident taxpayers are subject to a Medicare levy. Resident individuals are liable to pay a Medicare levy based on the amount of their taxable income. The Medicare levy rate for the 2008/09 income year is 1.5% of taxable income. No Medicare levy is payable where a person's taxable income does not exceed a certain threshold amount. For 2008/09 the threshold amount for individuals other than certain pensioners is $17,794. Where the taxable income for 2008/09 is more than $17,794 but does not exceed $20,934, the levy is shaded in at the rate of 10% of the excess over $17,794.

Medicare levy surcharge, on the other hand, is in addition to the Medicare levy. Individuals and families on incomes above the Medicare levy surcharge thresholds, who do not have private patient hospital cover pay Medicare levy surcharge for any period during 2008/09 that they did not have this cover. The Medicare levy surcharge is calculated at the rate of 1% of your taxable income.

Can I get an extension to pay my tax?

An extension on the payment of tax may be provided by the ATO, provided that you had legitimate reasons that restricted you from paying tax in the first place.

What is a work related expense?

You are able to claim deductions for work-related expenses you incurred while performing your job. You incur a work-related expense when:

• you receive a bill or invoice for an expense that you are liable for and must pay
• you do not receive a bill or invoice but you are charged and you pay for it

What is your Fee Policy?

We are here to help you in every way we can. We are dedicated to providing you with high quality service at a reasonable cost. An appropriate amount of fee will be required prior to the lodgement of your tax return. Alternatively, you can choose our "Fee from Refund" option at no extra cost.

What happens to my tax if I have two jobs?

As an Australian resident for taxation purposes, the first $6000 of your yearly income is not taxed. You are entitled to claim the tax-free threshold from one payer only. If you have more than one payer at the same time, you should not claim the tax-free threshold from the second payer as it is against the law to do so and may lead you to incur a tax debt at the end of the financial year.

Do you still need to lodge a return if your income is less than the tax-free threshold?

The answer is YES, you do need to lodge a return even though your income is below the tax free threshold. The reason behind this is that even though your income is below the tax free threshold, you may have had tax withheld from those earnings and the only way to get a refund of that tax is through the lodgement of the tax return.

What does input tax mean?

Input tax refers to the fact that GST is paid on purchases but is not passed onto the consumer and a refund cannot be claimed from the ATO.

Do all businesses charge GST?

No. For businesses registered with ATO, where their total revenue is over $75,000 per annum are required to be registered for GST. However, it is optional for businesses to register for GST where their total revenue is less than $75,000 per annum. In saying that, there are certain occupations that are obliged by law to be registered for GST, for example, taxi drivers. It is also important to note that certain health professions are exempt from GST purposes.

What are the consequences if I am not issued with an ABN?

You must have an ABN in order to be registered for GST. If you are not registered for GST, your entitlements to charge GST and claim refunds for GST paid are lost.

Who is eligible for SMSF?

Almost everyone can have a self managed super fund. You must be able to make contributions to your super or should already have money in superannuation.

Is there a requirement for minimum balance?

Although there is no minimum balance requirement, the ATO advises that a minimum of $100,000 contribution be made to your super due to the costs involved. Therefore, SMSF is not a very cost-effective method unless substantial contributions are being made to the superannuation.

What are the advantages of SMSF?

• You have control over which assets your fund invests in
• You have a wide range of investments available to you
• You're in a much better position to reduce the tax rate
• There may be very little or no ongoing investment management fees

What is Medicare Levy?

Medicare is the scheme that gives Australian residents access to health care. To help fund the scheme, resident taxpayers are subject to a Medicare levy, which is calculated at the rate of 1.5% of your taxable income.