In 2021 Tax Tips

Advice For Tax Time In Australia

Are you freaking out about tax time in Australia? Don’t worry; you’re not alone. Tax season can be daunting, but it doesn’t have to be. This blog post is packed with advice to help make tax time a breeze. So sit back, relax, and keep reading for tips that will make the process easier for you.

Australian tax time can be confusing, even for those who have done it before. So this year, make sure you’re prepared by following these simple tips! Whether you’re a first-time tax filer or just trying to make sure you claim every deduction you’re entitled to, we’ve got you covered. So read on for information on everything from income taxes to GST and tax deductions!

Thousands of people each year struggle to understand the complex tax system. But with a little help, you can make tax time a breeze. In this blog post, we’ll provide some advice on how to get through tax time quickly and easily. We’ll also discuss some of the most common mistakes people make when filing their taxes.

Tax time can be a confusing and daunting process, especially if you’re new to Australia. This guide will help simplify the process and make sure that you get through tax season with minimal stress. 

We’ll go over everything from what documents you need to file your taxes to how to estimate your tax return. So whether you’re an Australian resident or just visiting for a while, make sure to read our handy guide!

Are you among the many Australians gearing up for tax time? Or, are you one of the few who dreads this time of year? 

Regardless of your feelings towards tax season, it’s important to make sure you’re taking all the necessary steps to get through it as smoothly as possible. In this blog post, we’ll provide some advice on making tax time easier – from tips on the organisation to advice on working with a tax agent.

If you’re an Australian taxpayer, then you know that tax time can be a little daunting. It can be tricky to know exactly what you need to do between filling out all those forms and trying to remember everything you’re allowed to claim. But don’t worry – we’re here to help! This blog post will give you some tips and advice on how best to handle your taxes this year.

Are you struggling to figure out your tax situation this year? You’re not alone! Australia’s tax code can be confusing, but don’t worry – we’ve put together a guide with all the information you need to make filing your taxes as easy as possible. So keep reading for tips on which forms to fill out, what deductions you may be eligible for, and more. We hope this advice will help make tax time a breeze for you!

Tax time can be a daunting experience, even more so if you’re new to Australia. So here are a few tips to help make tax time a little easier. First, you’ll need to get your hands on a tax file number (TFN). You can apply for one online or visit an Australian Taxation Office (ATO) branch. Once you have your TFN, you can begin filing your tax return. 

The ATO has a range of resources available to help make the process as easy as possible, including an online portal and app. Make sure you submit your tax return on time to avoid any penalties. And finally, don’t forget to claim any deductions or credits that may apply to you.

Are you one of the millions of people in Australia who have to file a tax return every year? If so, then you know that tax time can be stressful. But it doesn’t have to be! So this year, why not follow some simple advice to make the process a little easier? 

In this blog post, we’ll share some tips that will help you get through tax time without any drama. So read on for helpful information and advice that will make the process smoother for you!

Let’s get started!

Taxation & Advice

It is tax time. Papers are everywhere. You are running out of time. How will you make sure you are maximising deductions? Or worse, what happens if you miss the deadline?

You can count on our dynamic team of tax specialists to take the confusion out of the taxation system as we explain tax issues to you in easy to understand words without bogging you down with all the industry jargon.

It’s our mission to make your personal or business tax compliance as easy to understand and painless as possible. 

We provide tax advice from the ground up, so whether you’re an entrepreneur starting a new venture or an established business owner with complex taxation issues, our team has the expertise to provide all the relevant tax advice you need.

Sound familiar? It doesn’t have to be. You can be stress-free around tax time. Let us look for additional deductions, explain your tax returns and answer your questions. 

How We Can Help

We work to provide you with the best possible tax outcome. Whether you are an individual, partnership, trust, company or SMSF, we will work with you to save money by looking for additional deductions you may not be claiming, preparing paperwork, and in turn, minimising worry. 

Enjoy peace of mind and invest your time doing what you do best- focusing on your business and personal affairs.

As a potential client, you can simply book your complimentary, obligation-free meeting and take the first step into a stress-free tax time. Then, you can make an appointment with one of our chartered accountants.

As a client, you will enjoy:

  • Our unwavering commitment to improving your overall tax efficiency
  • Having any areas of risk identified and minimised with real-world strategies
  • Having all of your taxation compliance obligations taken care of
  • Having our team’s expertise- let us answer your questions and provide you with the understanding you require
  • The assistance you need to make informed taxation decisions 

Fixed Pricing Structures & Affordable Accounting Services

With us, you will not have to compromise on quality. Enjoy peace of mind with our fixed pricing structure and affordable services. Having certainty over your expenses means you have control over your accounting budget.

Our team specialises in the following areas: 

1. Preparation of financial statements and income tax returns (all entity types) 

Whether you are working with our taxation advisors, our team will prepare accurate financial statements and income tax returns for all of your entity types. 

2. Small Business Entity Concessions (SBE)

Because the range of concessions for small business entities is complex and constantly changing. It is difficult to be across all of the concessions available to your small business without professional assistance. 

Working with us, we will identify all of the concessions available to your small business, explain them, and ensure you understand any notable changes to your situation. 

3. Capital Gains Tax (CGT)

If you consider selling an asset, seek professional assistance to ensure Capital Gains Tax (CGT) works for you, not against you.

We can help you with:

  • Acquiring and owning CGT assets
  • Selling an asset and other ‘CGT events’
  • CGT Exemptions, rollovers and concessions
  • Your home and other real estates
  • Shares and units 

4. Goods and Services Tax (GST)

Our chartered accounting firm will look after all of your GST concerns. So whether you are selling a business, selling property, selling land, importing goods or just having general concerns about your GST affairs, we look forward to putting your mind at ease regarding your GST liability.

5. Fringe Benefits Tax (FBT)

Know with our professional services your FBT affairs will be managed effectively to ensure that:

  • Your business is compliant
  • Your salary as an employee is structured resourcefully
  • Your FBT questions are answered

Business Tax Return Services

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Do you find yourself dreading the preparation of a business tax return?

Whether you’re a small business owner, sole trader or run a large company with many employees, trying to understand your tax obligations can be confusing and even overwhelming as the Australian business tax environment is governed by constantly changing and growing legislation.

We don’t just prepare business tax returns. We ensure that your business complies with all the relevant rules and regulations. At the same time, we also ensure that we legitimately minimise your business tax liabilities.

Below are examples of current business tax options that impact Australian businesses. These are just a few of the issues that we will advise you on to ensure that we legitimately minimise your company tax liabilities.

  • Instant business asset write-off – An instant asset write-off allows small businesses (with an annual turnover of less than $500 million) to claim immediate deductions (up to an amount of $150,000 for new or second-hand plant and equipment assets purchases such as vehicles, tools and office equipment.
  • Claiming depreciation of business asset – A depreciating asset is an asset that has a limited life expectancy (useful life) and can reasonably be expected to decline in value (depreciate) over the time it is used. Generally, you can claim a deduction for the decline in value of depreciating assets each year over the useful life.
  • Prepaid expenses – Businesses with a turnover of less than $10 million can claim an immediate deduction for prepaid expenses of up to 12 months. Making these prepayments means you can bring forward your deductions and reduce your tax liability for the current financial year.
  • Business account and loan expenses – In some cases, you can deduct the interest paid on any form of business finance from your taxes. Such forms of finance include business loans, lines of credit, and your business credit card.
  • Deductions for personal super contributions – If you made personal superannuation contributions during the year to a complying super fund or a retirement savings account (RSA), you might be able to claim a deduction for those contributions.

Putting your tax return (whether it be an ABN tax return, sole trader tax return, small business or large company tax return) in the experienced hands of Crest Accountants will give you peace of mind whilst you focus on more important things, like the running of your business.

General taxation advice

Don’t waste your time and money on sub-par taxation advice. Just a handful of the general taxation advice we offer our clients include:  

  • Assessable income & allowable deductions
  • Personal Services Income
  • Non-commercial losses
  • Carried forward tax losses
  • Family Trust Elections
  • Other general tax issues 

1. Liaising with the Australian Taxation Office

Suppose you have recently been contacted by the Australian Taxation Office (ATO). In that case, we can act as your tax agent and deal with the ATO on your behalf to make sure you are giving the ATO the correct information and to explain what the ATO expects from you.

2. International tax

Enjoy the peace of mind of our current clients and the professional advice you will need when dealing with foreign tax jurisdictions. Are you a foreign resident affected by Australian taxation law? We can effectively advise on your taxation obligations and ensure you understand your Australian tax liability. 

3. Small Business Capital Gains Tax concessions

Selling a business asset? You may be eligible for a small business capital gains tax concession. Eligibility for this can drastically reduce or even potentially eliminate your capital gains tax liability. 

It is important to talk to us and seek premium accounting advice to effectively advise you of how to structure the sale and access any concessions you are entitled to.

Other taxation assistance that our team can offer you include:

  • Expatriate tax issues
  • Business Activity Statements (BAS)
  • State Taxes and Duties
  • Tax Effect Accounting
  • Tax Consolidation
  • Transfer Pricing
  • R&D Tax consulting
  • Employment Taxes

Your Tax Planning Specialists

If one of your goals this year is to control your finances better, then tax planning should be somewhere in your master plan.

Tax planning is the strategic planning of affairs to minimise tax liability and maximise tax savings within the law’s intent. Simply put, it is the process of analysing one’s financial situation, implementing structured changes to ensure the lowest tax outcome.

Tax planning generally focuses on three objectives:

  • reducing income
  • increasing deductions
  • taking advantage of lower tax rates available

These objectives are achievable through three core tax planning strategies:

  • shifting income to a lower tax-paying entity
  • adjusting profit/loss between years
  • more tax-efficient investing

Tax is complicated, and compliance is essential. Hence, advanced knowledge of tax laws and regulations is necessary to identify and leverage any possible tax concessions and savings. We have the needed expertise to minimise your tax and help achieve your key objectives.

1. How Tax Planning Can Help

Whether you’re a business owner, investor or individual, tax planning can be incredibly beneficial to your bottom line. It is the best tool for optimising your tax position, setting you up for lower taxes and higher tax returns.

Additionally, tax planning can also offer insightful projections that allow you to avoid unpleasant and often expensive surprises, budget for the next year of tax payments, and make better-informed decisions that could reduce your tax liability. All this can significantly aid in managing cash flow in the high and low seasons of your business.

Some of the most common strategies we turn to include:

  • Making deductible superannuation contributions
  • Deferring income where possible
  • Reviewing and writing off any bad debts
  • Exploring negative gearing opportunities
  • Effective use of both income tax losses and capital losses
  • Checking the timing of your invoices
  • Expense prepayments, e.g. leasing rent
  • Review your inventory at year-end
  • Leveraging small business concessions
  • Assessment of tax benefits on fixed asset acquisitions

2. Our Process

We understand that everyone’s circumstances are different; therefore, each tax planning strategy is unique. We go through a four-step process to devise a tailored plan to help you achieve the lowest tax outcome. Our process is as follows:

Step 1: Review and Analysis

We gather and review your essential financial information to get a clear picture of your financial situation.

Step 2: Choose tax planning strategies

We then select the best strategies from our database, combined with our expertise and knowledge, best suit your unique circumstances.

Step 3: Reporting

We use our special tax planning software to develop a detailed report on the tax savings generated from the chosen tax planning strategies and implementation.

Step 4: Implementation

We discuss the implementation process to ensure you understand each step and the options. We then look to implement the strategies by providing you with an easy-to-follow action plan.

3. Tax Planning for Businesses

Is your business as tax-efficient as possible? We will set your business up to receive the maximum tax return while fully complying with your tax obligations. Our tax accountants can devise tailored solutions to meet businesses and companies’ needs, regardless of the structure.

Our tax planning services can help with:

  • Annual tax estimate preparation
  • Structuring businesses to achieve maximum tax-efficiency
  • Tax estimate scenarios
  • Cash flow forecasts and modelling
  • Tax-effective exit strategies
  • Depreciation and capital works expenditure
  • CGT estimations
  • Deployment of small business CGT concessions

Regardless of what stage your business is at, our experienced tax planners can help. Our focus is to generate, develop, and protect your wealth, setting you up for a secure and prosperous future.

4. Tax Planning for Individuals

Are you paying too much tax? Take control of your finances and set yourself up for success with our tax planning services. We formulate our tax estimates based on your individual needs and requirements to help minimise your payable tax. 

We can help you decide where to direct your funds before the end of the financial year and make informed decisions about your assets.

Our tax planning services include:

  • Annual tax estimate preparation
  • Specialist taxation advice
  • Tax Planning optimisation
  • Tax estimate scenarios
  • CGT estimations
  • Taxation audit assistance
  • Fringe Benefits Tax
  • Negative Gearing strategies
  • Investment property estimations
  • Superannuation contribution scenarios

Our expert tax planners will guide you in the right direction to minimise your tax and get you the best tax result possible.

Deceased Estates Accounting

finance and accounting concept. business woman working on desk

The passing of a loved one is a sad time, which can be worsened by the complications of dealing with a deceased estate. It’s the last thing you want to deal with when grieving the loss of a loved one.

Our deceased estates accounting experts can help make this painful time a little easier by taking care of their tax affairs for you. In addition, we can appoint a legal representative on your behalf to manage all the legal responsibilities, including their tax affairs.

We can assist with:

  • Final tax return for the deceased
  • Estate Tax File Number applications
  • Missing Tax File Numbers
  • Estate income tax returns
  • Solicitor liaisons
  • Collection of any death benefits
  • Withholding tax obligations of the estate

Enlist the aid of experienced deceased estates accountants and gain peace of mind knowing we’ll take care of your estate tax obligations.

FAQs

1. I have to buy tools and equipment for my job. What can I claim on my tax?

You can claim expenditure incurred in replacing, insuring and repairing tools of the trade that you use for earning your income. However, if the cost of any item is more than $300, it will have to be depreciated (i.e. claimed over its useful life). 

The amount you can claim will depend on what receipts you have kept and to what extent you use them for income-producing purposes. If you are in a situation where you are wondering what you can claim without receipts, you can claim less than $300 without proof of purchase.

2. My job requires me to keep my knowledge up to date, and I buy books and journals. Can I claim them all?

If technical books, trade books or journals are necessary to fulfil your job function efficiently, the cost of their purchase is tax-deductible.

3. I have a job which requires me to be on the road a great deal, and I have to use my car. What do I need to do to claim a tax deduction for my car?

There are two different methods for claiming work-related motor vehicle expenses, and each has different record-keeping requirements.  

To use the method that ensures you the best claim, it is advisable to keep a logbook and all receipts for expenses (e.g. insurance, registration, repairs, services, tyres, etc.). However, you do not have to keep receipts for petrol as we can work that out for you using an average yearly formula. 

Your logbook should be kept for a minimum of 12 consecutive weeks, and generally, it will be valid for five years unless there are significant changes in your circumstances. You also need to keep the opening and closing odometer readings for each year. 

You don’t need to use the same claim method each year. Instead, the choice of method should be based on which is more favourable to you and which you have the appropriate records for. 

If you don’t have a current logbook or have not retained all receipts, you will be limited in which method you can choose. However, you cannot claim any car expenses if your car is salary packaged.

4. I have just received a letter from the tax office saying that I did not declare interest from my bank account. What should I do?

If you believe this is incorrect, you should contact your bank to verify the income details for your accounts. The bank should notify the ATO in writing if this information is incorrect.

You have 28 days to correct this information. However, if you have omitted the taxable income, you will not need to contact the ATO. Instead, they will amend your return and send you a new assessment requesting payment of the additional tax, a general interest charge and, in some cases, penalties.

5. What is a Living Away From Home Allowance?

A Living Away From Home allowance is paid by employers when they require an employee to work in an area different from their normal workplace, and the employer pays the costs to the employee for living away from home.

For example, I work and live in Melbourne, and after a few months, the company requires me to go to Regional NSW for a few months to do some work there. They pay me an allowance for the costs of living in regional NSW because they have requested me to work there for a time. 

This is not taxable income, so I do not need to declare a tax return. It is an allowance paid by an employer to an employee and is not subject to tax by the employee, provided it is paid following the tax office guidelines. No expenses can be claimed against this allowance.

From 1 October 2012, the LAFHA continued to be taxed to the employer under the Fringe Benefits Tax system. However, the employer can reduce the Fringe Benefits Tax payable on the amount paid to the employee for a maximum period of 12 months, provided the employee meets the following conditions:

  • maintains a home in Australia for their personal use and enjoyment at all times whilst required to live away from home for their work; and
  • provides a declaration relating to living away from home.

If these rules are satisfied, the employer can reduce the taxable value of the LAFHA by:

  • the amount of the employee’s actual substantiated accommodation expenditure while living away from home; and
  • the amounts incurred by the employee for food or drink costs while living away from home, less a statutory amount if applicable.
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