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TFN declaration forms can now be downloaded

21 June 2016

We know there’s a lot of paperwork to complete when you hire new employees. We’ve listened to you and developed a fillable TFN declaration form which is available on our website.

You no longer need to order the form and wait for it to be mailed to you. Just download it from ato.gov.au/TFNdec or even better ask your new employee to download the form and fill it in on the screen.

Once it’s filled in print it off, get your employees signature then send the original copy to us using the address on the form within 14 days.

Don’t forget to keep a copy for your files!

 

Get your fillable Tax file number declaration form

Employers end of financial year to do list

To do:

  • Payment Summaries

Have you paid employees this financial year? Don’t forget to provide them with their payment summary by 14 July- even if you didn’t withhold any tax.

You can order a copy of our PAYG payment summary – individual non-business (NAT 0046) form using our automated self-help publications ordering service.

  • PAYG withholding Annual report

Your annual report recording the wages, salaries and other work-related payments you have paid needs to be lodged by 14 August.

Did you know that lodging earlier benefits your employees?

We use your information to prefill their tax return making it easier and quicker for them to lodge. Lodge your paperwork early this year and tick it off your list!

  • Tax tables

Start the next financial year on the right track and check you’re using the current PAYG withholding rates for your employees with our tax tables. You can also use our tax withheld calculator.

  • Superannuation

Your quarterly superannuation payments are due on 28 July. Use our Key dates function in the newsroom or the ATO app to set reminders and alerts for important dates like this one.

Find out more:

ATO PAYGW Calculator

Access the ATO’s PAYGW calculator to calculate PAYGW for your employees

PAYG Calculator

Australian Pharmacy Professional (APP) Conference 2016

In March this year Marcos Accountants exhibited at the APP. It was a successful conference and we hope to return in 2017.

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2016-2017 PAYG Withholding Tax Tables

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New rules for claiming car expenses

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Are you a sole trader or an individual in a partnership? Do you claim a deduction for business-related car expenses when you do your tax return?

There have been changes to how you calculate your deduction. Read about the changes and the records you need to keep now to maximise your claim.

From 1 July 2015, you can no longer use the one-third of actual expenses and the 12% of original value methods. For the 2016 financial year (and future years) there will only be two ways to calculate your claim.

Cents per kilometre method

You now use a single rate of 66 cents per kilometre for all motor vehicles (regardless of the size of the engine).

You can claim a maximum of 5,000 business kilometres per car using this method.

Logbook method

To use this method you need to keep a logbook for a minimum continuous period of 12 weeks.

You will need odometer readings for the logbook period and you can claim fuel and oil costs based on these records, or actual receipts. You will need written evidence for all other expenses.

 

 

Tax Minimisation Strategies

It’s almost that time of the year again when we all go into a frenzy to try to find our receipts so that we can claim on our work related or investment related expenses.

Before I go into this topic I would like to stress a point on tax deductions, which is: it’s only a percentage claim based on your marginal rate of tax. What that means is that if you have $100 worth of expenses and your marginal rate of tax is 30%, then effectively that would only equate to a refund of $30. This is why I stress the point, that where possible, you would try and get reimbursed for that expense by your employer.

Motor Vehicle Deductions

By far the best deductions available will be if you kept a log book for your motor vehicle expenses.

This method allows you to claim a percentage of all motor vehicle running costs such as petrol, insurance, repairs & maintenance and depreciation.

There are other methods but this by far is the best and I would recommend you put the effort into maintaining a log book as it could result in extra dollars in your back pocket!

Rental Property & Investment Loan Interest

If your loan allows it, you could prepay your next 12 months interest repayments before 30 June to obtain a tax deduction on your rental property, or investment income.

Depreciation Reports – Rental Property

Often missed by clients is obtaining a Qualified Quantity Surveyor to conduct a valuation of your fixtures and fittings that are in your rental property such as Blinds, Carpets, Light Fittings etc. Most of these items lose value over a period of time and that loss of value is known as depreciation which you can claim in your tax return.

If your building qualifies for the deduction you may also be entitled to 2.5% depreciation on your residential property and 4% on your commercial property for the decline in value on the Building.
The newer your property is, the more this depreciation amount will be, which again will add to your expenses resulting in a higher refund than you otherwise would have had.

The cost of obtaining the report is also allowable as a deduction.

Superannuation

If you are self-employed you could contribute up to $30,000 per annum into Superannuation, $35,000, if ages 50 and older. If we use the same marginal tax rate of 30% again that would mean you would get a reduction in your tax bill of $9,000 based on that $30,000 contribution.

Use 50% discount Method on Capital Gains

If you have a rental property or shares you are considering disposing of, you may want to assess the availability of the 50% Capital Gains Discount.

If you are an individual, provided you have held that investment for 12 months or more you will be entitled to a 50% discount on any capital gain. For example you sold the investment and the gain was $100,000, then only $50,000 will be included in your income tax return which will be taxed at your marginal rate and the other $50,000 is, essentially, not taxed.

This is a method to consider as the tax benefits can be quite substantial.