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What is personal service income(PSI)
The different…
Start Tax Return Now! TAX SEASON COMES Tax deductions for an Australian business are expenses that can be deducted from the business’s assessable income to reduce the amount of income tax payable in tax return. Here are some common tax deductions for Australian businesses: Operating expenses: This includes expenses such as rent, utilities, insurance, and […]
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To be eligible to claim a deduction for working from home expense, you must:
For more information, please check here.
For oversea students, if you are holding a student visa, your primary intention for obtaining the visa was to study in Australia before gaining working rights. Prior to enrolling and incurring tuition expenses, you were not permitted to work or be employed in Australia. However, when it comes to claiming self-education expenses, the requirement is that the course should be directly related to improving the skills required for your current income-earning activities. Therefore, as a general rule, international students are usually unable to claim self-education expenses.
For information, please check:
WHY OVERSEAS STUDENTS CAN’T CLAIM SELF-EDUCATION DEDUCTION IN TAX RETURN?
In the context of Australian tax returns, there are two types of work-related expenses: business-related expenses and PAYG (Pay As You Go) work-related expenses. Here’s an overview of the differences between them:
Business-Related Expenses (ABN): These expenses are incurred by individuals who operate their own business or work as independent contractors. In this section, you can claim deductions for expenses directly related to your business activities, such as office rent, equipment costs, advertising expenses, professional fees, and other costs directly incurred in running your business.
PAYG Work-Related Expenses: These expenses are incurred by individuals who are employees and receive a salary or wages subject to the PAYG withholding system. PAYG work-related expenses are typically associated with the performance of your job and are directly related to earning your income. For example, expenses for uniforms, training courses, and work-related travel.
It’s important to note that there are specific criteria and substantiation requirements for claiming both types of work-related expenses. Generally, you can only claim deductions for expenses that are directly related to your work and are not reimbursed by your employer.
Under Australian Tax Law, deductions totaling more than $300 must be substantiated with proof such as a receipt or other relevant document. If you cannot provide such evidence, we regret that we will be unable to process your deduction.
The Medicare levy is an amount you pay in addition to the tax. if you meet certain conditions, you could claim a Medicare levy exemption from your taxable income.
More information about Medicare levy exemption:
What is the Medicare levy Exemption
To be legible for an exemption, ATO may ask you to provide a Medicare levy exemption certificate. In this case, you must get a Medicare Entitlement Statement(MES) from www.servicesaustralia.gov.au.
Because you may get a reduction or exemption from paying the Medicare levy surcharge, depending on you and your spouse’s income and circumstances.
For more information, please check: How family and dependents affect on Medicare Levy Surcharge
The Business Activity Statement, or BAS, is a business’s quarterly tax reporting form submitted to the Australian Taxation Office (ATO). On the BAS, businesses report their total GST collected on sales and GST paid on expenses over the last three months. This allows the ATO to determine if a business owes additional tax or is due a refund.
if your business is registered for GST, you must submit BAS reports.
The BAS is a separate reporting requirement from your tax return. As a GST-registered business, you must report your GST activity and amounts on a BAS on a quarterly basis, regardless of whether you meet the lodgment threshold for income tax returns.
The BAS discloses your total GST collected from sales as well as GST paid on business expenses over the reporting period. The Australian Taxation Office uses this information to determine if you have a GST refund owing or additional GST amount payable.
Submitting your BAS ensures you are meeting your GST obligations as a registered business and helps maintain your GST registration status. Even if no sales or expenses were recorded in a particular quarter, a BAS must still be lodged to report nil activity.
Medicare is Australia’s universal healthcare system that provides affordable medical care for all residents and citizens. While Medicare is funded through a 2% Medicare Levy paid by individual taxpayers, there are certain exemption criteria that allow some people to claim a Medicare Levy Exemption. To understand if have met the requirements of Medicare Levy Exemption, please check the article below:
Capital gains tax (CGT) is the tax you pay on profits from disposing of assets including investments, such as property, shares and crypto assets. Although it is referred to as ‘capital gains tax’, it’s part of your income tax. It’s not a separate tax.
To check if you have registered GST, please go to ABN Lookup(https://abr.business.gov.au/):
To find your bank statement from online banking, you can follow these general steps:
If you are unable to locate your bank statement, please contact your bank staffs.
ABN stands for Australian Business Number. It is a unique 11-digit number that is issued by the Australian Business Register (ABR) to businesses and other entities, such as sole traders, partnerships, companies, and trusts, that are carrying on an enterprise in Australia. The ABN is used as a universal identifier for businesses and is required for various purposes, including:
Registering for Goods and Services Tax (GST) and Fringe Benefits Tax (FBT) with the Australian Taxation Office (ATO).
Claiming tax credits and deductions, such as input tax credits for GST.
Dealing with other government agencies, such as the Australian Securities and Investments Commission (ASIC) and the Australian Business Licence and Information Service (ABLIS).
Conducting business with other entities, such as suppliers and customers, who may require an ABN for invoicing and payment purposes.
To apply for an ABN, businesses and other entities must meet certain eligibility criteria, such as being registered for GST or operating in a business-like manner. Once an ABN is issued, it does not expire and can be used for the life of the business or entity, provided that the information held by the ABR is kept up-to-date.
If you have an ABN, but you forget it, please check: HOW CAN I FIND MY ABN?
The revised fixed rate method allows you to claim 67 cents per hour you work from home for the expenses listed below. You no longer require a dedicated home office to use this method:
Expense included in the revised fixed rate are:
You can’t claim a separate deduction for any of the expenses the revised fixed rate includes.
You can claim a separate deduction for:
The actual cost method allows you to claim a deduction for the actual expenses you incur as a result of working from home.
You may be able to claim a deduction for each of the expenses you incur, such as:
The actual cost method requires detailed calculations and records. For example, you will need to know and have records of the cost per unit of electricity and average units used per hour.
For more information, please check here.
In order to better understand this question, it’s important to understand the various types of access that certain cryptocurrency exchange API’s grant. You can configure what type of access you want your API key to grant using your exchanges account settings. Read only access allows the system that is connecting to the exchange API to only “read” or “view” the transaction data for that user account.
This type of granted access is popular amongst portfolio trackers and tax software systems that only need to know your transaction history in order to work properly. These applications, such as us, do not need to be able to make trades on your behalf, we only require this “read only” access to get your income data for tax return purpose. Programs with this type of access CANNOT make trades or withdraw funds on your behalf, so it is safe for you.
To obtain your Uber report, you can follow these steps:
If you encounter any difficulties or have specific questions about obtaining your Uber report, it’s recommended to reach out to Uber’s customer support for further assistance.
To amend your tax return, to fix a mistake or include additional information you can lodge a request online, by paper, through your tax agent or by sending us a letter.
Individuals and sole traders can request an amendment to their income tax return if
A sole trader is an individual running a business. If you run your business as a sole trader, you are:
Please send enquiry if you need to apply ABN.
Fares paid to taxi drivers by passengers include goods and services tax(GST). If you’re a taxi driver and you’re not employed by someone else, you must:
Also, lodge a tax return regardless of how much you earn from ride-sourcing because you are operating a business. If you have registered ABN and GST, please choose “GST Activated”. If you don’t have, please contact us to register them.
A tax file number (TFN) is your personal reference number in the tax and superannuation systems.
Your TFN is:
Please send enquiry if you need to apply TFN.
To get bank transaction records from online banking, follow these general steps:
It’s important to note that the specific steps may vary depending on your bank and its online banking platform. If you encounter any difficulties or have specific questions, it’s best to reach out to your bank’s customer support for assistance.
Capital Gains Tax Calculator – How to Calculate CCG Tax
To calculate capital gains tax, you can use our capital gains tax calculator blow: If you want to calculate by hand, here are the steps: Keep records of purchase and sale dates/prices, incidental costs, and the asset’s description. Consult the TAX123 if you’re unsure. Proper calculations help you maximize deductions and avoid tax trouble down […]
What Happens If You Lodge Your Tax Return Late in Australia(late tax return)
What are the penalties of late tax return? While the tax return deadline may seem a long way off, it’s important to be aware of the consequences of filing late in Australia. The ATO takes lodging on time very seriously – here’s what can happen if you miss the due date: Late tax return Penalty […]
What is capital gains tax in Australian tax return?
Start Tax Return Now! TAX SEASON COMES What is capital gains tax? In Australia, capital gains tax (CGT) is a tax imposed on the profits made from the sale or disposal of certain assets. It is the tax applied to the capital gain, which is the difference between the sale price of the asset and […]