Double check your deductions
Date posted: Thursday, October 23, 2014
For many, tax time is just a painful reminder of why the word ‘taxing’ exists. The looming BAS deadlines are often a source of frantic stress and for others it’s a veritable bonanza. Working out what you can and can’t claim and how much is deductable can be the difference between getting a great refund or not. A common question we field at Pakenham Taxation and Accounting is…
How do some people manage to get such great refunds when others don’t?
Mainly, they know exactly what kind of tax deductions they’re eligible for and understand how to work the system to their advantage.
While you always need to keep personal and work expenses separate (and the ATO is currently cracking down on suspicious returns), you’d be surprised what you can claim, depending on the kind of job you have.
For example,
- Journalists can claim on sunglasses if they work outside
- Performers can claim stage make up and tinted contact lenses
- Workers in the adult industry can claim back on lingerie
- Policemen can claim bulletproof vests and
- If you work from home you can even claim on energy bills.
Even if you have a stock standard office job, it’s definitely worth checking out the ATO’s full list of deductible expenses, separated into the needs of each industry.
And remember, keep all your receipts in one place so next year isn’t the stressful scramble is usually is!
Contact us for support on how to get the biggest refund within your entitlements and to manage your tax accounting better.
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3 things you didn’t know about GST
Date posted: Tuesday, October 7, 2014
After nearly 15 years since its implementation, you probably think you’re a pro at navigating the complex world of our Goods and Services Tax, but we’re here to remind you that there’s almost always something new to learn. We know this because all the changes and adjustments over the years means we’re still learning it ourselves!
We put together a few key facts about the GST we find many people don’t even know about, to give you a head start and ensure you don’t get caught out.
GST is actually optional for businesses with an annual turnover less than $75,000.
Great news! Well, not quite – as always in tax, it’s not always that black and white. On one hand, having 10% lower prices can really put you at a competitive advantage, but not being GST registered keeps you from claiming input credits and some people don’t deal with business that are un-registered.
Basic goods are always GST-free, but only sometimes.
We all know that goods and services seen as essentials are exempt from the GST for example raw foods, various education courses etc.
When these same goods are put into a commercial setting however, this can change. For example, water is GST free, but when served at a restaurant or café, it’s not. It pays to be careful of these ‘hybrid’ products, especially if you’re in the food or beverage industry.
It can be better to split expenses annually.
If you’re a small business, dividing expenses between personal and professional for tax purposes is a constant headache. Most people do this split when they lodge their Business Activity Statement monthly or quarterly, but did you know you can do it annually? Year-end adjustments can prove to be more accurate, not to mention the savings in time and stress!
For more information, don’t hesitate to contact Pakenham Tax, your local Accounting specialists. We can arm you with a myriad of tricks and tips that could help you better navigate GST for you or your business.