FAQs
My bank interest is only $10. Does this amount have to be declared?
I have just received a letter from the tax office saying that I did not declare some interest from my bank account. What should I do?
Do I have to declare income from Centrelink (Newstart, Austudy) on my tax return?
I have inherited some money. Is it taxable?
My 17 year old son has received $1200 from a trust distribution. Does he have to lodge a tax return?
I have shares and received franked dividends this year but have no other income. Do I have to lodge a tax return to get the franking credits refunded to me?
I have just moved permanently to Australia. Do I have to pay tax on the money that I have brought with me?
I will be going to China for six months and intend to work while I am away. Will I have to pay tax in Australia on the money that I earn overseas?
I have started my own business and wonder if I need to register for GST?
I run my own business and am wondering how I can minimise my annual tax bill.
I am self employed and have paid personal superannuation contributions all year. What can I claim?
I have heard that self-employed people can claim the superannuation co-contribution from the government. Am I eligible because I paid money into my super this year and I run my own business?
My bank interest is only $10. Does this amount have to be declared? (01)
You must declare all interest from all sources no matter how small the amount is.
I have just received a letter from the tax office saying that I did not declare some interest from my bank account. What should I do? (02)
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 not correct. you have 28 days to correct this information. However, if you have omitted the income, you will not need to contact the ATO. 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. If you require assistance with your communication, ING Accounting can help.
Do I have to declare income from Centrelink (Newstart, Austudy) on my tax return? (03)
All income must be declared. This is because the tax office needs to determine what tax rate applies to your other earnings for the year.
Centrelink will NOT be issuing PAYG Payment Summairies to taxpayers this year indicating how much income must be included in your tax return (taxable amount). You can access the information required from Centrelink online services. ING Accounting can look up the required information for you at your interview via the ATO Portal after 9 July 2014.
You may be entitled to an offset to ensure that no tax is payable on your benefit.
I have inherited some money. Is it taxable? (04)
The inheritance is not taxable unless you are advised by the executor that a part is taxable. However, if you invest the income from the estate then any earnings will be taxable.
My 17 year old son has received $1200 from a trust distribution. Does he have to lodge a tax return? (/05)
Yes. He will have to ledge a return. From 1 July 2011 the Government removed the ability of minors to access the low income rebate for unearned income (such as interest, dividends, rent, royalties, trust distributions etc.). This means a minor who earns over $416 in unearned income must lodge an income tax return.
Personal exertion income (such as salary & wages) will still have tax payable on it, but that tax payable can be reduced by low income tax offset but all unearned income will not attract the low income rebate and be taxed at minors' rates.
I have shares and received franked dividends this year but have no other income. Do I have to lodge a tax return to get the franking credits refunded to me? (/06)
You do not have to lodge a full tax return. You can complete the Refund of Franking Credits for individuals from which can be lodged by telephone or mailed to the ATO.
I have just moved permanently to Australia. Do I have to pay tax on the money that I have brought with me? (/07)
You will only have to pay tax on any earnings that you make from the time that you moved to Australia. If the money that you brought with you earns interest in a bank account you will have to pay tax on the interest.
I will be going to China for six months and intend to work while I am away. Will I have to pay tax in Australia on the money that I earn overseas? (/08)
The income will be taxable unless you have worked overseas continuously for more than 90 days and are working on a specific Australian government project or deployed overseas as a member of an Australian government agency. In these cases the income will be tax exempt.
If your overseas income is not exempt, you will need to declare the income on your Australian tax return and may be entitled to a foreign income tax offset for any foreign tax that you paid on that income.
I have started my own business and wonder if I need to register for GST. (/09)
Businesses with an annual turnover $75000 or more 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. ING Accounting can assist you with your application to register for GST.
I run my own business and am wondering how I can minimise my annual tax bill. (/10)
If your turnover is less than two million dollars, you would be classed as a small business entity (SBE). As such you would be able to access a number of small business concessions. Businesses that are SBE's or have a net asset value of less than $6 million can benefit from certain capital gains tax concessions.
To simplify and streamline depreciation arrangements for small business, the long life small business pool ceased to exist after the 2011-12 income year. The closing balance of a small business' long life pool and general small business pool for the 2011-12 income year is to be added together to calculate the opening balance of the general small business pool for the 2012-13 income year. The depreciation rate for this new combined pool is 15 percent in the first year and 30 percent in later years.
I am self-employed and have paid personal superannuation contributions all year. What can I claim? (/11)
Provided that you satisfy the eligibility criteria, you will be able to claim a deduction for the contributions you have made to a complying superannuation fund or retirement savings account. To do so you must be fully self employed or no more than 10% of your assessable income (including Reportable Fringe Benefits and Reportable Superannuation Contributions) is from an employer. You must also have first notified your superannuation fund of your intention to make the claim and received a confirmation.
I have heard that self-employed people can claim the superannuation co-contribution from the government. Am I eligible because I paid money into my super this year and I run my own business? (/12)
You may be eligible for the government co-contribution if more than 10% of your total assessable income is from running that business, eligible employment or a combination of the two. Investment income is not eligible income. If you claim any of your superannuation contributions as a tax deduction only the amount that you do not claim will be eligible for the co-contribution.
