No more zone tax offset for FIFOs

In the 2015-16 federal budget, the government announced that it will exclude “fly-in-fly-out” and “drive-in-drive-out” workers from claiming the zone tax offset (ZTO) where their normal residence is not within a “zone” (access the Australian zone list here).

The measure was not passed by Parliament until late in 2015, but it is now law, effective from July 1, 2015. Anyone who may have looked at making a claim under the ZTO next tax time may need to review their eligibility. Contact us if you would like assistance.

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Is the new home you are building exempt from CGT?

There is a concession in the CGT rules that can allow you to treat a property as your “main residence” even though it does not yet have a habitable dwelling. Under the concession you may be able to receive the CGT exemption while you are still building.

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Tax Office targets expats who claim non-resident status

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.

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Victim of TFN identity theft? The taxman can help

Identity theft is such a threat nowadays that the Tax Office has set up a Client Identity Support Centre (find it here) to help taxpayers who have had their identities stolen or misused.

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Tax deductions for subscriptions, special fees and levies

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.

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Property transactions: have you got an appropriate valuation?

Not all taxpayers may be aware of how the use of valuations can affect their annual tax bill.

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3 ideas to beat income tax bracket creep

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.

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Rental property tax deductions that are often misunderstood

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.

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Are you a share investor or a share trader?

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.

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Are you aware of the tax implications of working overseas?

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 will be living and working overseas for an extended period.

But there can often be confusion about the tax implications for Australians who take advantage of such offshore opportunities.

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