It is that time of the year – yep…tax time.
Whilst many of us put off the inevitable, we thought it would be worthwhile pointing out a few things that you should consider when preparing your information for your accountant at tax time:
Work related car expenses
This remains unchanged at applied at 66 cents per kilometre for work related use of your vehicle. Make sure you make a note of the destination and odometer readings in your vehicle log book.
In order to claim under cents per kilometre, please keep a record of kilometres travelled with a diary or one of the many Apps available to download to your phone.
If you want to claim for your vehicle running costs, some other work-related travel expenses can also be claimed, such as train/bus fares, tolls, accommodation and some meals – but be sure to note these in your diary too and keep receipts!
Accelerated depreciation for small businesses has been extended until 30 June, 2018
- From 12 May 2015, there is an instant asset write-off threshold for small businesses of up to $20,000 for individual assets acquired and installed ready for use.
- Small businesses can immediately deduct the business portion of most assets if they cost less than $20,000 and were purchased between 7:30PM on 12 May 2015 and 30 June 2018. This deduction can be used for each asset that costs less than $20,000, whether the asset is new or second-hand. You can claim the deduction through your tax return, in the year the asset was first used or installed ready for use.
- The definition of a small business was respectively changed on 1 July 2016 and is defined as being a business with a turnover of less than $10 million when it relates to this depreciation concession.
If you want to know more read our previous blog – Tax Write-offs for Small Business Explained
The low-income threshold for the Medicare Levy has been increased
The Medicare levy low-income thresholds for singles, families, seniors and pensioners will increase from the 2016-17 income year. The threshold increases mean that households will not pay the Medicare levy if their taxable income is below a statutory low-income threshold, those being:
- The singles threshold will increase to $21,655.
- The family threshold will increase to $36,541 plus $3,356 for each dependent child or student.
- The single seniors and pensioners threshold will increase to $34,244.
- The family threshold for seniors and pensioners will increase to $47,670 plus $3,356 for each dependent child or student.
Work from home? What can you claim?
If you work from home you can claim an allowance for using your Home office for work related purposes. To do this you will need to note the time spent working from home, in your home-based office, over a 4 week period.
You can claim for a percentage of you gas and electricity costs based on the floor space your of dedicated study compared to your entire house.
If you use your personal mobile phone for work, you will be able to claim a percentage of your bills based on how often you use it for work.
Working from home also means you can claim a percentage of your home internet usage, and will be calculated based on your home-based office usage.
Work-related stationary can also be claimed.
There are many, many more work and personal claims that can be made that you may not know about. You can download our checklists and send them to us, or if you’re still unsure, give us a call on 03 9723 7100 – we are only too happy to help!