Do I need to register for GST?
Australian businesses with an annual turnover of $75,000 or more are required to register for GST. If your business has a lower turnover you are not required to register, but you may do so if you wish. You will only be required to charge your customers GST if you are registered. Your local H&R Block office can assist you with your application to register for GST.
How do I reduce my tax bill?
If your turnover is less than two million dollars, you would be classed as a small business entity (SBE). As such you would be able to access a number of small business concessions including:
- income tax concessions
- capital gains tax concessions
- excise concessions
- Goods and Services Tax (GST) concessions
- Pay As You Go (PAYG) installment concessions and
- Fringe Benefits Tax (FBT) concessions.
What are the rules for claiming a home office deduction:
If a taxpayer carries out all or part of their employment activities from home and has an office set aside to do the work, some portion of the running expenses can be deducted. A diary should be kept for a minimum of 4 weeks stating hours the office was used for work related purposes.
From 1 July 2014, the Commissioner’s rate of 45 cents per hour (increased from 34 cents per hour allowed in the 2014 year) can be claimed for the hours the home office is used. Only running expenses (electricity, heating and depreciation of office equipment) can be claimed for home office unless the home is being used as a place of business.
Where a home is a place of business (and is easily identified as such – for example a separate entrance, signage, clients/customers coming to set area of your home etc.), deductions can be claimed on occupancy and running expenses including:
- mortgage interest
- house insurance
- council rates
- pest control
I make extra superannuation contributions to my fund. Can I claim this on my tax return?
Even if your employer is required to contribute to your super, you are now also eligible to contribute and claim a tax deduction.
Prior to 1 July 2017 you needed to be self employed to be able to claim a tax deduction for personal contributions.
Contributions that you claim as a tax deduction count towards the $25,000 concessional contributions cap, along with any contributions your employer pays. If this cap is breached, you may have to pay excess tax.
If you claim a tax deduction for a contribution you have made, you are not eligible for the super co-contribution for the amount you claim.
You must make a valid ‘notice of intent to claim’ in the approved form (https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/n71121-11-2014_js33406_w.pdf ) to your super fund before you lodge your tax return or by the following June 30, whatever is earliest.
You must receive an acknowledgement from your super fund that a valid notice of intent has been received, BEFORE you claim the tax deduction.
If you make a personal contribution to super, you don’t have to claim a tax deduction. It will be treated as a non-conc
I am over 60 years of age and retired. Will my superannuation pension be tax free?
People who have reached 60 no longer pay tax on superannuation income streams (pensions or annuities) that are paid from a taxed fund. A taxed fund is one where contributions tax was paid on the contributions made by your employer into your super fund on your behalf.
Contributions tax would also have been paid for contributions made under a salary sacrifice arrangement. Most funds are taxed funds. However, for taxpayers who belonged to an untaxed super fund, they will still have to pay tax on their superannuation income stream, irrespective of their age.
Taxpayers who are over 60 years of age (for the full financial year) and receiving a superannuation income stream from a taxed fund no longer receive a PAYG Payment summary.