2012 Personal Tax Return Checklist
It will assist us to maximise your refund if you review the following checklist and bring all relevant information with you to your appointment.Download a printable PDF version of this newsletter here
- Payment summaries for wages.
- Centrelink Statement in respect of:
- Tax-free Exempt Pension income received. (e.g., Disability Support Pension, Carer payments and Invalidity Service Pension etc.)
- Taxable support payments such as Newstart
- Payment summaries for superannuation pensions, lump sums and employment termination payments.
- Payment summaries for govt pensions & allowances.
- Interest received from banks etc.
- Dividends received or reinvested (bring statements).
- Partnership and/or Trust income.
- Managed Funds (investments) Tax Statements.
- Details of business income and expenses, including GST information where applicable.
Tax Time is again upon us. Please ring for an appointment to complete your Tax Returns this year with either Donna, Tynna, Peter or Max.
It is important that anyone considering an investment proposal seeks our advice with regard to the taxation consequences and options available to minimize taxation. For example there can be very significant tax advantages available by holding an investment in a Self Managed Super Fund rather than your own name.
We provide a full range of taxation services including:
- Advice regarding the best tax structure for the formation of new businesses. It is always best to discuss your new business proposal before committing to any new venture.
- Company and Family Trust returns.
- Formation and administration of Self Managed Super Funds ( SMSF ).
- Investment property tax advice.
- Our mobile lending service offers a wide range of finance options for home&investment loans plus asset financing.
Please review our checklist and tax tips on the following pages to assist with the preparation of your returns.
See you soon and thank you again for your referrals over the past year.
B.Comm FIPA JP
Employers across Australia will have new super obligations under a range of reforms that are being implemented from 2013 to 2019.
From 1 July 2013, employers must:
- Increase the minimum rate for super guarantee payments on behalf of their employees from 9% to 9.25%, and
- Start making super guarantee contributions for employees aged 70 years and over with the removal of the existing upper age limit.
This measure will significantly increase future retirement incomes for Australian workers through the gradual increase in the superannuation guarantee (SG) rate to 12 per cent.
The SG rate will be increased gradually with initial increments of 0.25 percentage points on 1 July 2013 and on 1 July 2014. Further increments of 0.5 percentage points will apply annually up to 2019‐20, when the SG rate will be set at 12 per cent.
Further information contact A Grade Tax Accountants Penrith on (02) 4731-1405 for retirement tax planning, accounting and tax advice.
For the 2013 tax year, the government have introduced simpler depreciation rules which will provide additional benefits to many businesses via:
- an increase to the instant asset write-off thresholds,
- consolidation of depreciation pools, and
- accelerated initial deduction for motor vehicles.
Increase to the instant asset write-off thresholds
Previously for assets costing less than $1,000 an immediate tax deduction or write-off was available. This threshhold has now been increased to $6,500 providing a significant tax benefit.
Additionally, if the SBE General Pool balance drops below $6,500 then the entire value of the Pool will be able to be written-off and claimed as a tax deduction.
Consolidation of depreciation pools
All assets previously added to the Long Life Pool and depreciated at 2.5% can now be transferred to the SBE General Pool and depreciated at 30%, again providing a significant tax benefit.
Accelerated initial deduction for motor vehicles
For any motor powered road vehicle we are able to claim an immediate tax deduction for the first $5,000 of the purchase price and then claim the traditional SBE General Pool depreciation of 30% on the balance.
This does not apply to road vehicles if:
- The main function is not related to public road use, or
- If the vehicle's ability to travel on a public road is secondary to it's main function.
Further information contact A Grade Tax Accountants Penrith for all your taxation, accounting, bookkeeping, superannuation, tax returns and tax advice.
From 1 July 2012, if you have a dependent spouse born on or after 1 July 1952, (that is less than 60 years old at 1/7/2012) you may no longer be entitled to claim the dependent spouse tax offset. The offset is being gradually phased out as the population ages (and the Federal Government tries to balance the budget).
Commencing from 28 September 2012, the ATO will send letters directly to affected taxpayers, to make them aware of the change.
If you were claiming the maximum rebate in 2012 for your dependant spouse who is less than 60 years of age at 1st July 2012, this change will reduce your 2013 Income Tax Refund by $2,355.
Contact us at A Grade Tax Accountants Penrith on (02) 4731-1405 for all your taxation, accounting and tax advice for business and individual clients.
Reduce your paperwork.
Make all your employee superannuation contributions in one transaction.
There's a simple way to meet your employee's superannuation obligations and reduce your administrative burden.
If you have 19 or less employees, you can pay all your employee superannuation contributions in one secure electronic transaction through the Small Business Superannuation Clearing House (the Clearing House).
This free online service is provided by the Australian Government to help you meet your superannuation obligations.
Simply visit www.humanservices.gov.au/smallbusinesssuper to register your business details and receive your secure user ID. Once you've registered, it will take just a few minutes to enter your employee's details - you only need to enter their details once.
Over 20,000 small businesses are already using the Clearing House.
If you're already using the Clearing House, you'll now find it even easier to use. In addition to the existing payment methods, you can now make your employee superannuation contributions using Electronic Funds Transfer.
If you have any questions, please email SBSCHenquiries@humanservices.gov.au or call 1300 660 048.
Contact us at A Grade Tax Accountants Penrith on (02) 4731-1405 for all your taxation, accounting, bookkeeping services, superannuation, tax returns and advice for personal and business clients.
The 2012-13 Federal Budget scrapped the Education Tax Refund (ETR) for 2012 and replaced it with the School Kids Bonus, to commence in January 2013.
The much talked about transitional “ETR Payment” will replace the ETR entitlement that would have been available in the 2012 tax return. This transitional ETR Payment will be paid in June 2012.
The ETR Payment lump-sum amount will be paid to all families entitled to Family Tax Benefit Part A on May 8th this year for a school aged child, as well as to young people in secondary education who are receiving certain student income support payments on May 8th and to eligible recipients under the Veterans' Children Education Scheme or the Military Rehabilitation and Compensation Act Education and Training Scheme.
The one-off ETR payment will be $409 for a child in primary school and $818 for a secondary school child - the same maximum amounts that would have been available in the 2011-12 tax return.
No adjustments or apportionments will apply to the transitional ETR Payment for children who started or finished school in the 2011-12 financial year.
So, for parents entitled to FTB Part A on 8 May 2012, if you have a child who started primary school in 2012 you will receive the full primary payment. Similarly, a child who is participating in a school based apprenticeship, will be entitled to the full Secondary payment.
The School kids Bonus will be available from 2013 to families receiving Family Tax Benefit Part A, plus young people in school receiving income support payments such as youth allowance, ABSTUDY, disability support pension and veterans' educational allowances, on the eligibility test date.
This article contains a summary of the key tax changes announced in the 2012 budget that impact on businesses and the various other tax and compliance measures announced over the past 12 months that also impact on all businesses and apply from 1 July 2012.
FEDERAL BUDGET TAX CHANGES
(1) Income Tax
No reduction in company tax rate
The company tax rate cuts to 29 and 28% have been shelved, including the small business tax rate reduction to 29% that was due to start from 1 July 2012.
Company tax loss carry-back
Companies, and entities taxed like companies, will receive a tax loss carry-back concession. The concession is limited, however, to company tax losses incurred in the 2012-13 income year and thereafter. Tax losses in the 2012-13 year may be carried back one year only, and company tax losses in later years may be carried-back for up to two years.
The company carry-back loss concession is limited to $1.0m of company income (revenue) losses, incurred from the 2012-13 income year, and may be carried-back only to receive a refund of income tax paid, in the previous one or two years as the case may be, that is represented by franking credits remaining in the a company’s franking account. The tax benefit is limited up to $300,000 per year. The tax benefit will not be received by a company until it has lodged its income tax return for the year it incurs the tax loss.
Increase in the Contribution Tax Rate to 30% in Some Cases
As part of the 2012 Federal Budget, the government announced that from 1 July 2012, eligibility for the mature age worker tax offset will be confined to taxpayers born before 1 July 1957.
This means taxpayers must have turned 55 prior to 1 July 2012 to receive this offset.
The $500 tax offset remains unchanged in all other respects.
Contact us at A Grade Tax Accountants Penrith on (02) 4731-1405 for all your taxation services, accounting, bookkeeping, tax returns, superannuation, retirement planning and tax advice for business and individual clients.
A Grade Tax as a leading firm of Penrith Accountants, are able to assist clients with their SMSF requirements.
DEFERRAL OF THE HIGHER CONCESSIONAL CONTRIBUTION CAPS
There were two announcements made in the budget that will impact superannuation members, the higher tax rate on contributions for high income earners and the deferral of the higher concessional contribution cap for individuals aged 50 and over. The deferral of the higher cap is by far of greatest significance as individuals nearing retirement have watched as the Government has stripped away the amount able to be contributed over the past few years.
Having originally cut the concessional cap in half in 2009/10, to take effect from 1 July 2012 for those aged 50 and over, the Government then announced they were increasing the concessional cap to $50,000, as long as an individual’s superannuation balance was less than $500,000. Having determined that this is now too difficult to implement by 1 July 2012, they have postponed the measure until 1 July 2014.
The end result is that an individual aged 50 or over is now limited to $25,000 from 1 July 2012 regardless of their account balance. This is compounded by the fact that the Government have frozen indexation of the concessional cap until 1 July 2014, a measure announced late in 2011.
To further discourage individuals aged 50 and over who earn income greater than $300,000 they will be taxed at an additional rate of 15% on their $25,000 contribution which means they will end up paying the same tax on $25,000 as they would have previously on $50,000. That leads us to the second announcement that we had all expected.
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