INCOME TAX CHECKLISTS 

Do you know what we need to complete your income Tax Return?

Find below our Individual Checklist and Rental Property Checklist. Use these as guides to assist you in ascertaining what records we require to complete your return.

NEW Individual Checklist.pdf

NEW Rental Property Checklist.pdf

Have a Business? Be sure you include;

• Cash, online, EFTPOS, bank statements, credit or debit card transactions covering both the sales and other business income AND any expenses you can claim as a business deduction such as contractor expenses, operating expenses and business travel expenses

Sole Trader?

• Even if your income is below the threshold you still need to lodge a tax return!

Still unsure? Feel free to contact us for further information or clarification.

Small Business Tax Concessions

If you qualify as a small business or small business entity, did you know the ATO offer a range of Tax Concessions?

Some of these concessions including payment and reporting options and apply to sole traders, partnerships, companies or trusts.

Some of the concessions you may be able to access are listed below. Click on the links and see if any apply to you. Find something you think you might be eligible for? Call us and we will assist you to put it in to practice.

• Income tax concessions
• CGT concessions
• GST and excise concessions
• PAYG instalment concession
• FBT concessions
• Super concessions

To determine if you are qualify for these concessions, contact us check your eligibility (you must review your eligibility each year).

Eligibility – work out if you're a small business entity

Want to find out what's new for Small Business? click on the links below for all the latest changes; 

• Simplified depreciation rules – instant asset write-off
• Accelerated depreciation for primary producers
• Lower company tax rate changes
• Expanded access to small business concessions
• Increased small business income tax offset 

Taxable Payment Annual Report (TPAR)

Did you know that some small businesses now need to lodge a Taxable Payment Annual Report?

If you are a business providing the following services you may need to conform;

• Building and construction services
• Cleaning Services
• Courier services

The TPAR tells the ATO about payments made to contractors for providing services.

Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.

The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:

• their Australian business number (ABN), where known
• their name and address
• gross amount you paid to them for the financial year (including any GST).

the ATO use this information to identify contractors who haven't met their tax obligations.

If you fit into one of these reporting categories click on the link and see if you need to lodge a TPAR;

• Building and construction services
• Cleaning services
• Courier services

We are able to assist you lodge these forms. Please contact us for further details. These forms are due once a year. Those businesses in the Cleaning and Courier categories your first TPAR is not due until 28 August 2019

Higher Education Loan Program (HELP) Debt

Do you have a HELP debt? If the answer is yes then it is vital you tell your employer on commencement.

You must start making compulsory repayments against your study or training support loan when your repayment income exceeds the minimum repayment threshold. This is even if you are still studying or undertaking an apprenticeship.

The repayment thresholds are adjusted each year to reflect any changes in average weekly earnings.

Compulsory repayments are made through your tax return. You can also make voluntary repayments at any time to reduce your loan balance.

It is vital you let your employer know when you complete your Tax File Number Declaration on your commencement that you have a HELP debt. This way, your employer can adjust your pay as you go withholding to include an additional amount from your salary and wage income to cover your compulsory repayment. If your employer doesn't know of your HELP debt and doesn't make the necessary adjustments you may end up with a hefty tax amount to pay when you lodge your tax return. Avoid any surprises and always complete the below section of your Tax File Number Declaration.

QUICK BITS

Fuel Tax Credits

Businesses: Don't forget that fuel tax credit rates changed on 1 August.

If you use fuel in heavy vehicles or other machinery for your business, follow our top three tips to help get your claims right:

Find out more at www.ato.gov.au/…/Working-out-yo…/Simplified-fuel-tax-credits

How is your Financial Literacy?

The HILDA Survey follows the lives of over 17,000 Australians each year, collecting information on many aspects of life, such as household and family relationships, income and employment, and health and education, which in turn can be used to inform public policy moving forward.

One of the areas of focus in the 2018 HILDA Survey was the collection of information pertaining to the financial literacy of Australians. This was undertaken via the provision of a 5-question quiz, which covered several key areas, i.e. numeracy, inflation, portfolio diversification, risk versus returns, and money illusion.

Without skipping too far ahead, less than 50% of those that completed the quiz were able to answer all five questions correctly. As such, we have included the quiz below. See how you go. The correct answers can be found at the end of this article.

Have a look at this article from MHP Private Wealth's Knowledge Centre. Interesting stuff. Put yourself to the test!

https://mhpwealth.financialknowledgecentre.com.au/kcarticles.php?id=1914

The 50/30/20 Budget Rule

There are many subtle rules and behaviours that we live our lives by. Consequently, whether you are relatively new to the concept of budgeting, or an old hand at it, you may have heard about the 50/30/20 budgeting rule*. In a nutshell, this budgeting rule can often be a useful starting point regarding budgeting and managing your money, as it provides a rough guide to how much money should be allocated towards your needs, wants and savings. For example:

• 50% allocated towards needs, such as rent or minimum home loan repayments, transportation, groceries, minimum credit card and car/personal loan repayments, general and personal insurances, private health insurance, education, utilities, phone and internet, etc.
• 30% allocated towards wants, such as daily coffee, eating out, shopping, entertainment (e.g. subscription services, such as Netflix), hobbies, holidays, etc.
• 20% allocated towards savings, such as emergency funds, savings accounts (e.g. saving for a new car or a housing deposit), additional debt repayments, as well as investments inside and/or outside of superannuation.

Do you know what percentage you are currently allocating towards your needs, wants and savings?

Read more in the article published by MHP Private Wealth's Knowledge Centre;

https://mhpwealth.financialknowledgecentre.com.au/kcarticles.php?id=1877 

Please contact us for any clarification on any tax matters or issues pertaining to your individual circumstances. 

Be sure to check out the links below and keep up to date with the due dates for your tax obligations.

We'll be back in December!

Kind Regards

The Team
McDonnell Hume Partners 
www.mhpartners.com.au

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