GM Tax & Accounting Services

Celebrating 24 years in 2018 !

2017 / 2018 Taxation update

Book in now for your personal tax return lodgement !

 

Head Office

GMTax and Accountancy Services

71 Muller Rd Hampstead Gardens  SA 5086

 Ph 08-83690477   

Fx 08-83692078    

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Salisbury Office

GMTax and Accountancy Services

88 John Street Salisbury SA 5108

Ph 08-83690215

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Elizabeth North

GMTax and Accountancy Services

Shop2/165 Woodford St Elizabeth North

08-82610799

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Download

our helpful Taxation checklist here

 

 

Personal income Tax rates

2017/2018  Tax Threshold

Tax Rate %

0 - $18,2000

Tax Free 0 %

$18,201 - $37,000

19.0% for each $1 over $18,200  

$37,001 - $87,000

$3,572 + 32.5%  for each $1 over $37,000  

$87,001 - $180,000

$19,822+37.0% for each $1 over $87,000 

$180,001  → +

$54,232+ 45.0% for each $1 over $180,000    

The above rates do not include the Medicare levy of 2%.

  Key changes affecting individual tax returns

Claiming personal super contributions from 1July 2017

·         From 1 July 2017, the Government has removed the requirement for individuals to satisfy the 10% test in order to be eligible to claim a deduction for a personal super contribution. As a result, for personal contributions made from 1 July 2017, employees will no longer be required to satisfy the 10% test.

ATO’s  individual  audit  targets  for  2018

·          Work-related expense claims Airbnb operators (or hosts)

·          Lump sum payments to medical practitioners from healthcare clinics

·         CGT issues with applying the main residence exemption for income producing dwellings – The CGT main residence exemption represents the largest tax expenditure for the Federal Government (i.e., $74 billion for 2017/18). Therefore, the correct application of the main residence exemption is likely to have greater scrutinised by the ATO, particularly in relation to how the exemption is applied in respect of income-producing dwellings.

ATO’s latest (key) data matching programs

  • Contractor payments data matching program 
  • Department of Immigration & Border Protection (‘DIBP’) Visa Holders  data matching Program
  • Online selling data matching program
  • Ride-Sourcing data matching program
  • Share transactions data matching program

ATO's crackdown on work-related expense claims

that do not require written evidence (e.g., receipts)

The ATO is increasingly concerned at the number of claimed deductions without having provided written evidence (e.g., receipts).

For example, according to the ATO:

·         Standard claims of $300 (or just under $300)

·         Standard claims of $150 being made for laundry expenses

      Excessive claims are being made for car expenses under the ‘cents per km method’ where: it is assumed that no explanation is required for the claim; or an employer has advised the ATO that an employee is not required to use their car for work-related purposes.

According to the ATO, over three million individuals made work-related car expense claims in 2015/16 (totaling approx $8.5 billion), and a significant portion of these claims were to the limit that did not require detailed records (i.e., 5,000 business kilometer limit).

 ► ATO sets its sights on clients investing in cryptocurrencies (e.g., bitcoin)

TAX WARNING – Can the ATO track bitcoin transactions?

The ATO has recently developed a taskforce to help identify and track cryptocurrency transactions and is working closely with relevant parties (e.g., Austrac, state revenue offices) in dealing with this issue.  In addition, the ATO is able to use information available to it to conduct ‘lifestyle audits’ where there is a suspicion that unexplained wealth may be attributable to bitcoin gains.