1st July 2011
Dear Client,
It’s that time of year again! Thank you for the opportunity to help prepare your tax return last financial year and once again we look forward to preparing and lodging your return for 2011.
Our new location: Suit 1 / 201 New South Head Rd Edgecliff (Enter via New McLean St) close to train station and parking see my website for exact location.
Changes to the 2011 Individual Tax Return
Paid parental leave has been introduced into the tax system and from 01/07/2011 both employees and employers must register from three months before the birth or adoption and up to (18 weeks before) 12 months after the event. The payment is $570 gross before tax per week maximum 18 weeks totaling $10,259 and is assessable income. To be eligible the primary careers adjusted taxable income in the previous financial year must be $150,000 or less (not Family Income). You must have worked 10 out of the last 13 months minimum average of 1 day per week and cannot receive baby bonus of $5,294 non assessable. In most cases with income of up $150,000 per annum the Paid Parental Leave is a better option when compared to the baby bonus.
The Medicare Levy Surcharge For the tax year 2011/12 you are considered a higher income earner if you are a single person with an annual taxable income of over $80,000, or a couple or family with a combined taxable income of greater than $160,000. The family threshold amount of $160,000 increases by $1,500 for each dependent child after the first.
The flood Levy Starts 01/07/2011 with taxable Income between $50,000 and $100,000 the levy is 0.5% and income over $100,000 1%.
Occupations Targeted by ATO for work related Expenses for 2011 return are; School Teachers, Engineers and Mechanics , so if you work in these fields please pay extra attention to keeping all your receipts close by.
ATO Letters, some clients will receive letters from the ATO regarding work related expenses and investment properties, these are randomly generated by the tax office and are targeting issues that we discuss when completing you tax return so please do not feel that you are not entitled to claim deductions.
Ongoing Tax Issues
If you are claiming motor vehicle expenses under the log book method please remember that a log book lasts for five years or if your pattern of use changes by more than 20% you must complete a new log book. We have log books available at our office in electronic and hard copy version.
Mortgage Offset Accounts are an effective way to reduce interest costs and maximize interest expenses when and if you lease your property, also the six year rule for the main residence exemption of capital gains tax is very effective; please ask for a free consultation.
We look forward to hearing from you soon, to make an appointment for myself or one of my staff please call or email the office. Saturday morning and after hour are still available by appointment only. To make the process easier I have listed below documents and information you will need in order to lodge your tax return.
Financial Year Ended 2011.
- All PAYG Payment Summaries from employment.
- PAYG Payment Summaries from Center link for new start allowance, sickness benefits
- Interest earned on bank accounts.
- All Foreign income and foreign investment losses
- All dividend statements including dividend reinvestments.
- Employee option or share scheme documentation.
- Financial summaries from managed funds and other financial institutions.
- Total interest charged on margin loans and other investment loan products.
- All Buy and Sell Contract Notes from share trades
- Private Hospital Cover details.
- All receipts for work related expenses or a spreadsheet regarding these expenses, including; Union fess, overtime meal allowance, seminars and conference fees, books, journals, trade magazines, tolls and equipment, protective clothing or uniform with logo, sunscreen, sunhat, sunglasses, computers, software and upgrades, mobile phone and home office running costs.
- Education expenses in excess of $250 including related travel.
- Log book for work related motor vehicle expenses were work travel was greater the 5,000 km.
- Total amount of work related km’s traveled were total work traveled was under 5,000 km.
- Rental property statements, interest charged and related expenses (please check the what to bring page for an extensive list.)
- Charitable donation receipts.
- Medical expenses in excess of $1,500 for whole family, after any reimbursements.
- Education expenses for Primary and Secondary school children, subject to eligibility.
- BSB and Account Number for a quick refund by direct deposit into your bank account.
As a tax agent I can offer extensions between March 2012 and May 2012, 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 hearing from you soon!
Best Regards,
Adam Beasley
Principle Tax Agent
Company Director