General

Please browse through the below FAQ’s to see if your question is here or please submit a new question via the contact us page.

PAYG Instalment system – Only the ATO can get you into and out of the PAYG Instalment system. This is a system whereby you pay income tax on a quarterly or end of year lump sum basis. The amount payable is set by the ATO based on your last tax Return lodged. These amounts can be varied on a quarterly or end of year basis dependent on that particular quarter or year’s activity.

How long do you need to keep records for? – 5 Years (note – reduced from 7 years) For capital gains tax, you must keep records for at least five years after the relevant capital gains tax event; for example, the sale of an asset. When claiming prior year losses, you must keep records relating to those losses for five years following the year you claimed the loss in.

Methods to claim motor vehicle – Cents per km based on your car engine with a 5000km cap – 12% of original value – 1/3 of Actual Expense – Logbook

How do I do a logbook? – A log of all private and work/business related travel must be accounted for, for 12 continuous weeks. A logbook can be obtained at most news-agencies or drawn up using Excel.

How long is my logbook valid? – For 5 years.

Made an error on a prior year’s tax? – Organise to amend your prior year Return/s

How much income can my kids earn which is tax free? – Minors who are residents of Australia do not have to lodge a tax return if they earn less than $2,667 in 2008-09. This is because the low income tax offset of $1,200 offsets the tax payable on income less than $2,667.

Selling your main residence – Generally, you can ignore a capital gain or loss you make when you sell your main residence (also referred to as ‘your home’). This is known as the ‘main residence exemption’. However, you generally can’t obtain the full main residence exemption if you have used any part of your home to produce income.

Absence from main residence – If you have initially acquired the dwelling as a man residence and then cease to occupy it, you can still retain that dwelling as a main residence. The exemption applies for a maximum of 6 years if the dwelling is used to produce assessable income while the taxpayer is absent OR indefinitely if the dwelling is not used to produce assessable income.

Can you have more than one main residence? – No, you must elect only 1 main residence. You can only have 2 main residences at the same time, for a maximum of 6 months, where a new dwelling is purchased.