Accounting Blog

What is the Medicare Levy Surcharge

What is the Medicare Levy SurchargeWhat’s less exciting than talking tax? Talking insurance, right? But did you know that taking out private hospital insurance can possibly save you money twice come tax time? We all pay a Medicare Levy as part of our tax. That’s our...

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What is the Tax-free Threshold

Do you know the benefits of claiming the tax-free threshold as an employee?
Did you know claiming the tax-free threshold when you work two or more jobs can negatively affect your tax?
Are you still just trying to figure out what the tax-free threshold even is?
If you’re an Australian resident, the tax-free threshold means your first $18,200 earned in each tax year is tax free. But, as with most taxes or rebates, it’s not quite that simple, especially if you’re working more than one job or receive income from other sources. In fact, understanding the tax-free threshold can be a step towards getting more out of your tax return, or simply avoiding tax debt.

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How to Calculate Tax

If you don’t’ lodge your tax return by the due date, the ATO will hit you with a fine known as a Failure to Lodge (FTL) penalty. You will be fined a penalty unit, which currently stands at $222, every 28 days – with a maximum of 5 penalty units, which comes to a total of $1110.

However, these penalties also increase for those with higher assessable incomes. If you have an assessable income between $1 million and $20 million, you’re known as a medium entity and the penalty is multiplied by 2 – so you’ll be fined $444 every 28 days.

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2020 ATO Work-Related Hotspots-Individual Tax Return

Due to Covid-19, the ATO will be paying attention to certain deductions this year, including: • Travel expenses• Uniform & laundry expenses• Other work-related expenses These deductions are particularly relevant for the last third of the 2020 financial year (March...

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Home Office Expenses

Home Office ExpensesAs an employee working from home, you can claim a deduction for expenses that you incur in relation to this work. This includes running expenses such as: • Electricity & gas (for heating, cooling & lighting) • Phone & internet • Paper,...

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Motor Vehicle Expenses

Motor Vehicle Expenses Motor vehicle expenses may be claimed for the use in your business, or use as an employee for work purposes, you cannot make a claim for use that is private in nature. When claiming car expenses as a deduction within your tax there are a couple...

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Phone, Internet & Electronic Device Expense Claims

Phone, Internet & Electronic Device Expense Claims If you are required to use your own internet, phone, tablet, laptop, or any other electronic device for work, then you may be entitled to make aclaim for these expenses. You will need to apportion all claims...

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Tax Planning

Tax Planning is an effective way of reducing your current tax liability and can be achieved through reviewing your books prior to year-end. The following suggestions indicate possible ways to reduce your current tax liability: 1. Prepayment of deductible expenses...

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Get In Touch With Us

Phone
(07) 4638 0221
Email
info@willmotaccounting.com.au
Office
206 Herries St,
Toowoomba, QLD, 4350
Business Hours
M – F: 8:30am – 5:00pm
Closed Sat/Sun

F.A.Q.

When are employers legally required to issue PAYG Payment Summaries?
Generally employers are required to supply a payment summary within 14 days of the end of the financial year – i.e. 14 July. If an employee ceases employment part-way through the year, one must be supplied within 14 days of receiving a written request from the former employee and the request must not be made any later than 21 days before the end of the financial year. If a former employee has been receiving fringe benefits and leaves before the end of March then the 14 day limit may need to be extended.
How long do I have to keep my tax documents for?
You must keep all the records, receipts and other documentation you have used to prepare your tax return. If you are claiming deductions, you must keep written evidence to verify your claims for those deductions.
If you are an individual, you must keep proper records relating to your tax affairs for at least five years from the date you lodged your tax return.
If you are a small business, you must keep proper records relating to your tax affairs for at least five years from when the business record is prepared or the transaction is completed, whichever occurs later.
If at the end of the five year period, you are involved in a dispute with the Commissioner (an audit, for example), the five year period is extended.
If you use information from your records in a later tax return, you may have to keep records for longer. So, if you carry forward a tax loss, you must keep the records until the end of any period of review for the income tax return in which the loss is fully deducted.
If you own an asset which will be subject to capital gains tax on disposal, you will need to keep records covering the entire period of ownership until 5 years after lodgment of the tax return recording the disposal of the asset.
I have started my own business. 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.
What expenses can I claim for my home office?
If a taxpayer carries on 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. The Commissioner’s rate of 45 cents per hour can then 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
  • rent
  • house insurance
  • council rates
  • insurance
  • repairs
  • cleaning
  • pest control
  • maintenance
  • decorating
  • telephone
  • heating
  • lighting
  • depreciation.

Willmot Accounting

Our Service Areas

We serve a wide area of South Each Queensland. Our office is located in Toowoomba

Toowoomba
206 Herries, St, Toowoomba, QLD, 4350
Kingaroy
Kingaroy, QLD, 4610
Gold Coast
Gold Coast, QLD, 4207 to 4230

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