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The Tax Advantage FAQs

1. Do I have to lodge a tax return? 12. Can I claim childcare?

2. I've never lodged a tax return before 

13. Can I claim working from home?

3. Can your fee be taken from my refund? 

14.Should I buy an investment in my company?

4. How long will my refund take?

15. What are the small business concessions?

5. I am a few years behind. Will I get penalised?

16. Is it better to pay off my mortgage, or invest in super?

6.Can you prepare multiple years returns at the same time?

17. Is a company car worthwhile?

7.What if I can't pay the assessment?

18.Is salary sacrifice worthwhile?

8. What if I don't have all my records?

 19.I want to start a business, but want to protect my assets.

9. What if I find the records later?

20. What's the difference between asset protection & estate planning?

10. Why do I have to pay so much tax on my second job?

21. Why is estate planning so important?

11. Can I claim the maintenance I pay to my ex-wife?

22. Have the new super rules changed much?

































Tax Returns

Do I have to lodge a tax return? Everyone's situation is different e.g. age, income and expenses. Ask us, or check with the Taxation Office

 Everyone's situation is different e.g. age, income and expenses. Ask us, or check with the Taxation Office

I've never lodged a tax return before Different rules do apply in the first year for people such as graduates, and new immigrants. We'll explain the whole process to you, and what those differences are.

Can your fee taken from my refund?  Certainly. There is a fee of $30 regarding the  trust account authority however

How long will my refund take?  Most refunds are processed by the Taxation Office within 14 working days.

I am a few years behind. Will I get penalised?  Maybe, maybe not. It's unlikely for the years that are due a refund, unless you have a poor history with them.  If you owe, the Taxation Office can penalise you up to $670 per year. They will charge interest on any monies outstanding. We'd recommend you lodge any outstanding tax returns as soon as possible. The Taxation Office can start proceedings which might result in a court conviction.

Can you prepare multiple years returns at the same time?  Certainly.

What if I can't pay the assessments? We can negotiate a payment plan with the Taxation Office for you. They will charge interest.

What if I don't have all my records? If you're missing a PAYG summary, contact your employer. If there's a problem contact the Taxation Office. A statutory declaration might e necessary. If you're missing expense dockets, that will limit what you can claim. You may need to substantiate your claims.

What if I find the records later? We can always amend your return, up to four years later.

Why do I have to pay so much tax on my second job?















That income is added to your other income, possibly pushing you into a higher tax bracket. As a result you can't claim the tax free threshold ($6,000) for the second job. You are taxed at your marginal rate plus Medicare levy.

Can I claim the maintenance I pay to my ex-wife? No - maintenance payments are not deductible

Can I claim childcare? Childcare is now claimed directly with the Family Assistance Office, and not through the tax system. Contact the FAO.


Basic Tax Issues

Can I claim working from home?A few rules need to be met, but yes its an allowable deduction

A few rules need to be met, but yes its an allowable deduction

Should I buy an investment in my company?Generally no. The capital gains tax will be higher than personal ownership.















If risk is an issue, talk to us about other structures such as a trust.

What are the small business concessions?Its possible to reduce or eliminate any capital gains tax on the small of a small business















This is an intentional government incentive. Its complicated and requires planning ahead, but very worthwhile. Talk to us to ensure you'll maximise these concessions

Is it better to pay off my mortgage, or invest in super?We need to do the numbers for you, some assumptions need to be made.















The last budget however has tipped the balance back to super in many instances

Is a company car worthwhile?If you're on the top marginal rate it may be, especially if you do a lot of kilometres. We need to the numbers

Is salary sacrifice worthwhile?It depends what the sacrifice is for.















If its school  fees etc which have fringe benefits implications, we don't unusually recommend it. If its for super, it's a good way of increasing savings

I want to start a business, but want to protect my assets.This is vital. We can set up a structure for you where the goodwill or intellectual property is parked, and your exposure is minimised. Care is needed to take advantage of the generous capital gains tax small business concessions as well.

What's the difference between asset protection & estate planning?Similar techniques and structures, different objectives. Asset protection is important for:

  • anyone in business, and/or
  • with an investment portfolio, and/or
  • even landlords

to minimise the risk from claims by creditors, even ex-spouses. The laws have been tightened so such that these structures need to be set up well in advance of a claim arriving. If a tenant sues because of tripping over carpet, it's too late to minimise assets at risk.

Estate planning will ensure

  • your wishes are met
  • taxes are minimised or eliminated. There is tax on some super death benefits,
  • assets are protected and kept in the family, in the event of premature death, or failed marriages. If one of your children has marital problems, you need to plan ahead to avoid that inheritance going out to that ex-spouse.

Why is estate planning so important? Estate planning co-ordinates the assets under your will, your superannuation, your family trust, even life insurance. Few people realise that the executor doesn't control all your assets. Your will needs to take account of the non-estate assets, and allow for tax consequences. Its a complex area, but shouldn't;'t ignored.

Have the new super rules changed much? A lot. No more Retirement Benefit Limits, tax free pensions after the age of 60. New contribution limits have been introduced. Compulsory cashing-in has been abolished. There are many more planning opportunities available.

 

Disclaimer

We recommend you seek specific advice about your specific issues. The information here is necessarily general in nature and neither purports nor is intended to be advice on any particular matter that is appropriate to your circumstances.

Neither Crown Accounting Pty Limited or any member or employee assumes any responsibility in any way whatsoever to any person in respect of the information contained on this website,  including any errors or omissions herein how so ever caused. 

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