Individual Tax
Deadline for lodgment of all tax returns is fast approaching...
Registered Tax Agents are provided an extended due date for lodgment of tax returns up to 15th May as a client you are also able to avail this extension however be aware that leaving your returns to be prepared at this late a date may not ensure lodgement by this date. If you have not already had your returns done now is the time to get your information together and make an appointment as late lodgment penalties may be applied and are currently $1,220 per return.
Deductions for personal contributions to super
If you intend to claim personal super contributions made during the year as a tax deduction you are required to submit a 'Notice of Intent" (NOI) form to your super fund and you must receive an acknowledgement back from the fund to confirm the treatment of the contributions.
Whilst this has always been the case, there are some individuals who receive deductions on the personal super contributions without submitting the required form. This results in the super funds not applying the appropriate rate of tax to the contribution and as the contribution has been deducted from the individual's income, no tax is paid on it at all. It therefore goes without saying that the Goverment now intends to crack down on this practise to ensure that anyone wishing to claim personal super contributions as a tax deduction does so through the correct processes.
Whilst this has always been the case, there are some individuals who receive deductions on the personal super contributions without submitting the required form. This results in the super funds not applying the appropriate rate of tax to the contribution and as the contribution has been deducted from the individual's income, no tax is paid on it at all. It therefore goes without saying that the Goverment now intends to crack down on this practise to ensure that anyone wishing to claim personal super contributions as a tax deduction does so through the correct processes.
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Rental Properties - Restrictions on travel & depreciation claims
From 1 July 2017, restrictions have been introduced in relation to claims for travel and depreciation for rental properties.
Travel - Travel expenses incurred in respect of a residential rental property (eg. travel related to inspecting or maintaining a rental property) are no longer deductible, irrespective of when the property was acquired.
Depreciation - Depreciation claims are no longer available in respect of depreciating assets aquired after 9 May 2017 (either separately or as part of a residential rental property), where those assets have been previously used. Please note this does not include the Division 43 building write-off claims which continue to remain available to investors.
Travel - Travel expenses incurred in respect of a residential rental property (eg. travel related to inspecting or maintaining a rental property) are no longer deductible, irrespective of when the property was acquired.
Depreciation - Depreciation claims are no longer available in respect of depreciating assets aquired after 9 May 2017 (either separately or as part of a residential rental property), where those assets have been previously used. Please note this does not include the Division 43 building write-off claims which continue to remain available to investors.