Tax Tips

Tax Tips :: General

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

You can claim the tax free threshold of $18,200 for the first job only. However, your second job is taxed at your marginal rate plus Medicare levy.

Can I now claim for sun protection items?

Yes you can claim for sun protection items if you work outdoors and purchase sunscreen lotion, sunglasses and hats for use at work.

What is a Living Away From Home Allowance?

A living Away From Home allowance is paid by employers when they require an employee to work in area that is different to their normal workplace.

E.g. I work and live in Sydney and within a few months my company requests me to go to Regional NSW to work there for a few months. My company is required to pay me this allowance for living away from home.

This is a not a claim you can make in your tax return or any other means. This is strictly an allowance paid by the employer to the employee that is not subjected to be taxed.

I am five years behind in lodging my tax returns. Will I get into a lot of trouble?

You should lodge your outstanding tax returns as soon as possible and before the Australian Taxation Office takes any action to have you lodge these tax returns. Once they have begun any action it could result in a court conviction. In 2001, the ATO have instituted new rules that state they may charge a penalty of $110 for every 28 days that the return is outstanding. The maximum penalty is $550 even if you are due a refund. In addition, the ATO will charge interest at an outstanding high rate. This interest is referred to as the General Interest Charge.

Can you complete my tax return if I am missing a PAYG Payment Summary (group certificate)?

Yes we can complete using the details from a copy of the PAYG Payment Summary (your employer can provide this), a letter from your employer with the PAYG Payment Summary information or by reviewing your pay slips for that period and completing a Missing PAYG Payment Summary.

Do I need to bring my partner with me to complete my tax return?

It is helpful as they can assist with family details, but you don’t have to. You only need to have your partner’s details if you wish to claim the Family Tax Benefit through your tax return.

I received an additional PAYG Payment Summary (group certificate) after I completed last year’s tax return, can I put it in this year’s?

No – a PAYG Payment Summary from a past year cannot be included with the current year tax return. It can only be included in the return for the year that it relates. You will need to submit an amendment to that year’s return.

My father has died. Do I need to complete a tax return for him?

Yes it is necessary to complete a tax return to date of death if a return has been lodged in past years. This return, marked final, showing all income to date of death.

Do I need to declare my overseas pension?

In most cases overseas pensions are taxable. There a few exceptions to this rule.

How can I reduce my tax bill?

One of the ways you can reduce the tax you pay is by salary sacrificing in return for employment related benefits. The benefit of Salary Sacrificing is that your benefit is purchased with pretax dollars. There are many things that you can Salary Sacrifice, but all are subject to Fringe Benefits tax, except superannuation and minor benefits such as a mobile phone or computer. Motor Vehicles are subject to Fringe Benefits tax, but the amount is reduced if the car is used for work, according to the amount the car is used for work.

The Fringe benefit is paid at the top marginal rate of tax, including Medicare (48.5%) on the grossed up benefit provided. .

Increasing Deductions is another way of reducing your total tax bill. You should carefully review your expenditure and employment requirements to determine if you can make this claim.