Which individuals can claim the Education Tax Offset ?
To be eligible to claim the Education Tax Offset an individual must meet the following 3 conditions:
The claimant has received or is entitled to receive Family Tax Benefit Part A in respect of a child. Thus the rebate must be claimed by the parent registered for Family Tax Benefits. If for example the parent that is registered for FTB does not need to lodge a tax return then they must complete a stand alone Education Tax Offset claim form – it cannot be transferred to the other parent to claim on their tax return.
The child is enrolled in a primary or secondary school course.
Eligible education expenses are incurred in respect of the child.
Eligible claimants will be able to claim the following tax offset amount for 2009:
A 50% tax offset for up to $750 of eligible education expenses incurred for each child attending primary school ( i.e., a refund of up to 50% x $750 = $375 per primary school child )
A 50% tax offset for up to $1500 of eligible education expenses incurred for each child attending secondary school ( i.e., a refund of up to 50% x $1500 = $750 per secondary school child )
Only the following prescribed education expenses can qualify for the tax offset:
As announced in the May 2008 Federal Budget, from 1st July 2009 income tests used to determine eligibility for a range of government financial benefits will change. From this date, salary sacrified contributions to superannuation will be counted as income for the following:
Eligibility for the superannuation co-contribution
Various tax offsets: and
Medicare levy surcharge
Therefore, if you are in a salary sacrifice arrangement beware that these payments, whilst not counted towards the above thresholds for this current financial year, will be counted from 1st July 2009 onwards. Accordingly, if you were motivated to enter into a salary sacrifice arrangement in order to qualify (or in the case of Medicare levy surcharge, avoid) one of the earlier payments, you may wish to review with your advisor the benefits of continuing such an arrangement post 1st July, 2009.
For more information ring (02) 4731-1405 A Grade Tax Accountants Penrith for tax advice, planning and all your accounting and taxation needs.
The Education Tax Refund (ETR) is a new government initiative to help with the cost of educating primary and secondary school children. It means eligible parents, carers, legal guardians and independent students could get 50% back on some education expenses. This includes items like computers, educational software, textbooks and stationery.
Most people are eligible for the ETR because they receive Family Tax Benefit (FTB) Part A. However, there are some payments that prevent you from receiving FTB Part A, but which still entitle you to receive the refund. You can also claim the refund if you are an independent student. For more information, see http://ato.gov.au/individuals/content.asp?doc=/content/00174278.htm&page=1&H1
You can claim the ETR each financial year for children in primary and/or secondary school, or if you are an independent student. You will be able to claim the refund from 1 July 2009 for the 2008/09 financial year. This means you can claim for items purchased from 1 July 2008. Remember to keep your receipts as they will help you calculate your entitlement and you may be required to produce them as proof of purchase.
You can claim the ETR even if you are not required to lodge a tax return.
A trust is a relationship where a trustee (an individual or a company) carries on a business for the benefit of a range of people (the beneficiaries). It is commonplace for the trustee of a trust to be a company (a corporate trustee) for asset protection purposes.
A trust is not a separate legal entity. It is a relationship under which the trustee holds property for the benefit of the beneficiaries. For instance, a trustee may carry on a business for the benefit of a particular family and distribute the yearly profit to them. A trust may be discretionary (i.e. be able to benefit a range of people in the proportions that the trustee decides) or have fixed interests (i.e. will benefit certain people in fixed proportions). Trust income can be distributed among a wide range of people, often including the extended family of the business principal.
The Australian Tax Office has published a Superannuation Guarantee Ruling which changes the definition of "Ordinary Time Earnings" (OTE) used to calculate employers Superannuation Guarantee obligations.
Under the ruling, OTE means all earnings from "ordinary hours of work". Salary and wages paid in the "ordinary hours of work" do not extend to overtime payments, according to the ruling.
The ruling also maintains that all types of bonuses are now to be included in OTE other than:
a bonus that is solely referable to work done in overtime hours; and
some sign-on bonuses.
Payments in lieu of notice on termination of employment were also now included within the meaning of OTE.
Superannuation Guarantee Ruling SGR 2009
Contact A Grade Tax Accountants Penrith on (02) 4731-1405 for all your specific taxation needs.
Below is a brief guideline regarding the Government’s tax bonus payments:
If your 2007-08 taxable income was up to and including $80,000 the bonus is $900
If your income exceeded $80,000 but did not exceed $90,000 the bonus is $600
If your income exceeded $90,000 but did not exceed $100,000 the bonus is $250.
To receive the payment your 2007-08 income tax return must be lodged by 30 June 2009 and you must have paid tax. If you were refunded 100% of your income tax paid when lodging your 2007-08 income tax return you will be ineligible for the Tax Bonus Payment. The first round of payments will commence from April 2009. Those who have already had their returns assessed will be the first to receive their payments.
For all your accounting and taxation services please contact A Grade Tax Accountants Penrith on (02) 4731-1405 or visit our website www.agradetax.com.au
There has been a change to the fuel tax credit rate for fuel used in heavy vehicles travelling on a public road. The rate to use when calculating claims will depend on when the fuel was acquired. This means:
For fuel acquired from 1 January 2009 use the new rate of 17.143 cents per litre
For fuel acquired before 1 January 2009 use the old rate of 18.51 cents per litre.
For further information contact A Grade Tax Accountants Penrith on (02) 4731-1405 for a full range of taxation services, accounting and bookkeeping for Individual and Business clients.
The Government has issued a new $4.7bn economic package to stimulate business investment and encourage capital expenditure.
As part of this the Government has introduced the following ‘capital investment allowances’ in relation to ‘depreciable assets’ (plant, equipment and motor vehicles) acquired between 13 December 2008 and 30 June 2009. To be eligible the assets must be ‘installed ready for use’ by 30 June 2010. This means:
‘Small businesses’ acquiring assets costing more then $1,000 will be allowed an additional tax deduction of 30 per cent of the assets’ cost; and
Before preparing financial statements and income tax returns there are some issues that need to be addressed as a single asset might be subject to various depreciation treatments and may or may not be allowed the ‘investment allowance’ claim
These are some of the issues:
The assets need to be ‘new’
The ‘investment allowance’ is available where the depreciation claim is prepared under the depreciation provisions of Div 40 of the Income Tax Assessment Act 1997 (Cwlth)
‘Capital works’ do not qualify for the allowance (these claims are prepared according to Div 43 of the ITAA Act)
The investment allowance is not ‘accounted for’ in the financial statements. It is a deduction which is claimed only in the tax return. Therefore, there will be a difference between accounting profit and taxable income
Note for car buyers New cars and genuine demonstrator cars are eligible for the new investment allowance.
Ring (02) 4731-1405 A Grade Tax Accountants Penrith for your specific taxation and accounting needs.
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