The Tax Office has sent letters to people living overseas who have made claims as non-residents for tax purposes. We strongly recommend that expats consult with their tax professional prior to responding to the letter as international tax matters further compound the already complex tax rules.
Many professional, business or trades people are members of an association, and during their working life subscribe to an appropriate organisation.
In most cases the membership of a trade union for example, or professional association relevant to workers in a particular occupation, would qualify for a tax deduction under the general deduction provisions of the tax laws.
Not all taxpayers may be aware of how the use of valuations can affect their annual tax bill.
Income tax “bracket creep” happens when an increase in income moves you from one tax bracket to the next, resulting in a higher tax rate, and therefore reducing the overall gain from your higher salary.
Many property investors are making simple mistakes when claiming tax deductions for their rental property, which could be avoided with a little guidance.
The following checklist provides examples of many of the common claimable and non-claimable rental property expenses. Check them off to see where you stand, and please contact us for more information specific to your situation.
Have you ever let a room on the popular accommodation site Airbnb? Thinking of sharing a ride with pseudo taxi service Uber?
If you participate in what’s now called the “sharing economy”, you may have some tax to pay.
There’s a saying that many sharemarket investors may have already heard: Don’t let the tax tail wag the investment dog. In other words, the best advice for your share portfolio is to base your decisions on investment merit, not on trying to save tax.
Even so, there are taxation consequences for everyone with an investment portfolio, so when a “grass is greener” tax option seems possible, it can be very tempting to chase after it.
Back in the 1980s, people could reduce tax by having their money in bank accounts belonging to their kids. In 1988, the Tax Office intervened by issuing guidance about how they tax children’s savings accounts.
Thanks to a simple criterion and penal tax rates, parents cannot pass off their money as mere pocket money for the kids in order to avoid paying tax on interest they earn.
Do you know if you are a resident or non-resident for tax purposes? Do you understand the tax implications of working overseas?
Thousands of Australians head offshore each year to expand their horizons. Some will fund their adventure by working overseas. Some may be living and working overseas for an extended period. There can often be confusion about the tax implications for Australians who take advantage of such offshore opportunities.