1st July 2009
Dear Client,
The new financial year is upon us in uncertain economic times and therefore it is important to get the most out of your tax refund for the 2009 financial year, and the years to follow. It was a pleasure for us to assist you last financial year and we look forward to the opportunity once again.
All clients who’s taxable income for the 2008 financial year was less than $100,000 should have received a $900 (or pro rated amount) Tax Bonus Payment as part of the Governments Stimulus Package, if you were entitled and have not yet received the payment please call our office to resolve the issue.
After the financial crises and subsequent stock market crash it is important to allocate all Capital Losses from managed funds and direct shares in the 2009 tax return, these losses can be carried forward indefinitely to offset any future capital gains.
Unfortunately a number of people will have been retrenched due to the economic downturn and received Termination Payments, these payments are on a separate PAYG Payment Summary to your normal salary and wages and need to be entered correctly to ensure you are not taxed at a higher marginal tax rate than necessary. Legal fees to recover certain wage entitlements are tax deductable.
If you intend to undertake study after retrenchment those education costs will not be tax deductable, you must regain employment before enrolling and paying for education before you are entitled to a tax deduction.
During last financial year the Government introduced the First Home Saver Accounts. Broadly the government will contribute 17% of your personal contributions to the savings account up to a Maximum of $5,000; therefore for every $5,000 you save in the account the government will contribute $850. Any interest earned on the account will be taxed at maximum of 15% regardless of your marginal tax rate. You will need to ask us about other important aspects of the account.
Investment property owners can claim compounded interest charged, but not paid, if your bank agrees to a “repayment holiday” due to loss of employment in the current market. Legal expenses to evict a non paying tenant or to recover unpaid rent can also be tax deductable.
The Education Expenses Tax Offset was also introduced for families, who are entitled to Family Tax Benefit part A and have children at primary and secondary school. Keep receipts for computers and related equipment, internet, school text books and stationary so that we can claim the tax offset for you.
All family tax benefit payments and child care tax rebates are now only available directly through the Family Assistance Office.
Small Business Entities are still entitled to the 50%, 30% and 10% Investment Allowance for purchase of new equipment up until the 30/12/2009, please call to discuss this or any other tax planning issue.
Thank you once again for the referrals to the practice they are warmly appreciated.
I would also like to introduce a new member of staff, Mr. Milorad Pajic (Bachelor of Business Accounting. Adv Dip Acc, CPA asa) we welcome him to our team and know that his skills will be invaluable to the practice.
We look forward to hearing from you soon, to make an appointment for myself or Milorad Pajic please call or email the office, Saturday morning appointments are still available.
A reminder that I can offer extensions that range between March 2010 and May 2010, please contact the office for your specific date.
Interactive Tax Consultants has associate practices in financial planning, wealth management, commercial law, mortgage broking, commercial loans and quantity surveyors, so please ask if you require no obligation assistance in any of the areas mentioned.
We look forward to seeing you soon.
Best regards,
Adam Beasley
Principle Tax Agent
Company Director