PJT Accountants

FAQ's

 

 

 

  1. Q: What documents are required to lodge my individual tax return?
  2. A: To find out what documents are required to lodge your individual tax return, please click on the link: tax return.
  4. Q: Why can't you give me a fixed quote for the work?
  5. A: Just like its impossible to quote a building job over the phone without looking at the plans, or value jewellery over the phone, its not possible to know how long any accounting work might take. Rarely is your work exactly the same as last year and the tax laws are never the same, so things are often different from one year to the next.
  7. Q: Can you prepare multiple year's returns at the same time?
  8. A: Yes, we can prepare and lodge all previous year's returns at the same time.
  10. Q: What deductions can I claim if I'm studying?
  11. A: Only study directly related to your current job may be claimed as a self-education expense. For example if you were cleaner and you were studying early childcare then you wouldn't be able to claim the cost of the course as a work related expense.
  13. Q: I have received a dividend statement, do I need to declare this as income?
  14. A: Yes, you need to include dividends and any interest earned on bank accounts. Don't forget to include all interest, even if you've already closed the bank account.
  16. Q: Do I have to lodge a tax return?
  17. A: Some individuals do not have to lodge a tax return. Each person's situation will differ due to age, income and expenses.
  19. Q: I have a property, purchased in 1990, which qualifies as my main residence for CGT purposes. Can I move out of the property, rent it out, and continue to treat it as a main residence?
  20. A: Yes. This can be done for up to six years whilst continuing to call the property a main residence. The main proviso is that no other property is being treated as a main residence for CGT purposes during the absence from the first property.
  22. Q: I am in Australia because I have a two year contract with a local employer and have a temporary working visa. I have been told that I am classified as a temporary resident of Australia. Why is this important?
  23. A: Since July 1, 2006 there has been a new category for people who are temporarily in Australia. People who exhibit the behaviour of a resident and hold a temporary visa granted under the Migration Act of 1958 will be taxed at resident rates. A resident is generally taxed on all income in and out of Australia but a temporary resident is exempt from paying tax on certain classes of income.
  25. Q: What is the difference between resident and non-resident tax rates?
    A:     Non-residents pay tax on all Australian income. They pay tax on every dollar of taxable income as declared on their tax return but do not pay Medicare. Residents have to declare all income earned in and out of Australia. A tax free threshold of $6000 is available and a resident may be entitled to claim some tax offsets (rebates) that are not available to non-residents. Depending on the amount of taxable income a resident may also have to pay the Medicare levy.
  27. Q: I have started a second job. Is there anything that I need to do so that I don't end up with a tax bill at the end of the year?
    You cannot claim the tax free threshold of $6,000 from more than one employer at a time. It is better to claim it from your main employer. You will pay a little higher rate of tax on the second job but this should ensure that you have paid enough tax on all of your wages for the year.
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  29. Q:I am three years behind in lodging my tax returns. Will I get into a lot of trouble?
  30. A: You should lodge your outstanding tax returns as soon as possible and before the Australian Taxation Office takes any action to have you lodge these tax returns. Once they have begun any action, it could result in a court conviction. The ATO may charge a penalty of $110 for every 28 days that the return is outstanding. The maximum penalty is $550 even if you are due a refund. In addition, the ATO will charge interest. This is called the General Interest Charge and is levied on any outstanding monies. The rate for the July to September, 2007 quarter is 13.37%.
  32. Q: Can you complete my tax return if I am missing a PAYG Payment Summary (group certificate)?
    A: Your return can be completed using the details from a copy of the PAYG Payment Summary (your employer can provide this), a letter from your employer with the PAYG Payment Summary information or by reviewing your pay slips for that period and completing a Missing PAYG Payment Summary schedule.
  34. Q: Do I need to bring my partner with me to complete my tax return?
    A: No, but it is helpful as they can assist with family details. There are a number of questions concerning dependants, dates of birth and medical details. You will need to have your partner's details if you wish to claim the Family Tax Benefit through your tax return.
  36. Q: I received an additional PAYG Payment Summary (group certificate) after I completed last year's tax return. Can I put it in this year's return?
    A: No. A PAYG Payment Summary from a past year cannot be included with the current year tax return. It can only be included in the return for the year that it relates to. You will need to submit an amendment to last year's return.
  38. Q: My father has died. Do I need to complete a tax return for him?
    A:     It is necessary to complete a tax return to date of death if a return has been lodged in past years. This return, marked final, must show all income to date of death.
  40. Q: How can I reduce my tax bill?
    A: One of the ways you can reduce the tax you pay is by salary sacrificing in return for employment related benefits. The advantage of Salary Sacrificing is that your benefit is purchased with pre-tax dollars. There are many things that you can Salary Sacrifice. All are subject to Fringe Benefits tax, except superannuation and minor benefits such as a mobile phone or computer. Motor Vehicles are subject to Fringe Benefits tax but the amount is reduced if the car is used for work. The Fringe benefit tax is paid by the employer and is paid at the top marginal rate of tax, including Medicare (46.5%) on the grossed up benefit provided. Some employers require their employees to reimburse the FBT amount from their salary package.
  42. Q: I have just left school and about to start my first job. My new employer has asked for my tax file number. How do I apply for one?
    A: Application forms are available from the Tax Office or you can download one from
    http://www.ato.gov.au/. The completed form must be returned to the ATO together with original proof of identity documents. You can mail the documents or take them to an ATO shop front. You are not able to apply on the internet. When your documents have been examined they will be returned to you and your tax file number will be mailed to you within 28 days. Provided you have applied for a tax file number, you have 28 days to quote your tax file number to your employer after which he is required to withhold tax from your wage at a rate of 46.5%.
  44. Q: I am an overseas student who has recently arrived in Australia to study and would like to know how to obtain a tax file number.
    A:     If you are an overseas student living in Australia who has had your visa amended to allow you to work, you can apply on the internet. You will not need to provide documentation as proof of identity because the ATO will compare your personal and travel document details with those held on the Department of Immigration and Citizenship (DIAC) system. Provided the matching process is successful a TFN will be mailed to the Australian address provided on the application. This internet service is also available to working holidaymakers, New Zealanders who get a visa on arrival and permanent migrants.
  46. Q: When are payers (employers) legally required to issue PAYG Payment Summaries?
    A:     Generally within 14 days of the end of the financial year – i.e. 14 July. If an employee ceases employment part-way through the year, a PAYG Payment Summary 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 RFBs and leaves before the end of March then the 14 day limit may need to be extended.
  48. Q: I usually lodge my own return but will be unable to get it in to the tax office by 31 October this year. What can I do to avoid getting into trouble with the tax office?
    A: If you owe tax and lodge your return late, any amount owing will be payable on the 21 November this year and a general interest charge will be calculated from then until payment is made. The ATO may charge a penalty of $110 for every 28 days that the return is outstanding. Unless you use a registered tax agent, you have from 1 July until 31 October to lodge your return. If you need an extension of time either contact the ATO or a Registered Tax Agent before 31 October.
  50. Q: I am leaving to travel overseas; do I need to complete my tax return before I leave?
    A:     It isn't necessary to complete a return before leaving Australia unless you will not be back before the due date for lodgement of your return (October 31st). If you won't be back until after the lodgement date contact the Australian Taxation Office or a registered tax agent to apply for an extension of time to lodge.
  52. Q: I am having some expensive dental work done and wondered if I can claim anything on my tax return?
    A: A net medical expenses offset is available where you and your dependants have incurred out-of-pocket medical expenses in excess of $1500. Eligible expenses include doctors' fees, hospital accommodation and related charges, dental work, medicines, etc. Where procedures are of a cosmetic nature only, they will not be eligible expenses that can be included in a calculation of this offset. If the dental work you are having is for the correction of a problem then the cost incurred will be counted towards the out-of-pocket expenses for this offset.
  54. Q: I am approaching my 55th birthday and have heard that I may not have to pay as much tax?
    A:     If you are still working, you may be eligible for a Mature Age Workers Offset for the tax year in which you turn 55. The maximum available offset is $500. You will be entitled to the maximum if your net income from working is between $10,000 and $53,000. If your only income is from investments then you will not be entitled to this offset.
  56. Q: I am covered by private health insurance and will be turning 65 this year. Will my premium be reduced?
    A: From 1 April 2005 premiums for health insurance policies covering people over 64 years of age will attract a higher tax offset. This can be taken as reduced premiums or as an offset on the policy holder's tax return. If the eldest person covered by the policy is aged 65 or above the offset increases to 35% or 40%. Further advice can be sought from the Health Fund or your registered tax agent.
 
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