All board posts in Individuals

Re: Lump Sum in Arrears Payment Tax Offset

Backpayment — Thu, 27 Feb 2020 23:19:13 GMT

I found the calculation in the Income Tax Assessment Act 1936 at the following link from the ATO website. It is a little hard to understand to be honest. Lots of googling coming up

https://www.ato.gov.au/law/view/document?DocID=PAC%2F19360027%2F159ZRD&PiT=**TFN removed**35958

Re: Back payment of leave on redundancy

JasonT — Thu, 27 Feb 2020 22:41:12 GMT

Hi ,

Thanks for your question.

Where a genuine redundancy applies the rate of withholding will be 32% of the total amount, disregarding cents. This applies to both Annual leave and Leave loading.

Further information regarding withholding from Annual leave

Thanks and I hope this helps,

JasonT

Re: Travel allowance query

macfanboy — Thu, 27 Feb 2020 22:31:19 GMT

You can definitely claim travelling between the two offices on the same day.

With respect to travelling to the 'other' office, is there a pattern in which you travel eg every Monday and Friday?

Or do they let you know the night before and it could be once a month, once a fortnight etc?

Re: forms

KylieS — Thu, 27 Feb 2020 22:23:25 GMT

Hi ,

You are able to lodge an objection to request that the return be amended, if it's out time.

Thanks

KylieS

Re: TAX AMENDMENT

KylieS — Thu, 27 Feb 2020 22:16:49 GMT

Hi @ali78,

Yes we do release all information to Centrelink, irrelevant of the age.

KylieS

Re: HELP debt and Retirement

KylieS — Thu, 27 Feb 2020 22:15:09 GMT

Hi ,

Let us know if you have any other questions.

KylieS

Re: Loan from family ocerseas

KylieS — Thu, 27 Feb 2020 21:51:19 GMT

As its not income only a gift from family you would not have to pay tax on the money. I would keep records of the loan and what it is used on just incase you are asked in the future.

KylieS

Re: CSP, HECS and TFN

KylieS — Thu, 27 Feb 2020 21:48:19 GMT

Let us know if we can help with anything in the future.

KylieS

Travel allowance query

CDH_1978 — Thu, 27 Feb 2020 12:05:14 GMT

I am currently performing 2 roles with the same employer - the role relating to the position that I own plus a secondment in another role in another area of my organisation. Both roles are based in different offices a fair driving distance apart. Some days I am travelling between the 2 offices to work part day at each, other times I just go to one of the offices and perform duties for both roles from there. My question is - can I claim travel allowance for all of my travel since I am doing my usual role as well as another? Or can I just claim for travel to/from one of the offices?

Compulsory repayments

lolren — Thu, 27 Feb 2020 10:18:10 GMT

I am currently making compulsory student repayments through PAYG. However, I am also making voluntary repayments to pay it off sooner.

What happens to the money witheld from PAYG from the 2019/20 financial year if i pay off my debt in one go before the next financial year? Can it be refunded?

For example, person X owes $20,000 for the 2019/20 financial year. Throughout this financial year, money has been witheld through PAYG. Person X decides to pay off the $20,000 in full prior 2020/21 financial year.

Hope this makes sense.

Re: HELP debt and Retirement

OzzyGuy — Thu, 27 Feb 2020 08:43:39 GMT

Can you please give me your opinion/advice regarding my post...thanks.

CSP, HECS and TFN

OzzyGuy — Thu, 27 Feb 2020 15:23:39 GMT

Question withdrawn - I don't think anyone can answer it here.

Re: Asset disposal closing business

nicolas974 — Thu, 27 Feb 2020 07:34:50 GMT

Thank you MarkA. That s great. I have read through and understand that this will be treated as a taxable sale. However what about the market value? What if I want to sell this asset to a family memmber a very low price say $100 plus GST but the market value is $30000 for argument sake. Should I report the GST for a $100 taxable sale to a family member or would the ATO calculate the market value of the asset automatically? Thanks.
Nm

Trade support loan

James3589 — Thu, 27 Feb 2020 07:22:10 GMT

I have recently noticed I have a credit against my trade support loan in my ATO profile on my.gov how do I claim this back into my account or do I just wait until next tax return

Re: request TFN from overseas

ChrisR — Thu, 27 Feb 2020 07:20:20 GMT

Thanks for your reply.

If you want to apply for your TFN while you are still overseas, you will need to apply via mail in accordance with the information on our website. Getting your friend to do it on your behalf by submitting scanned documents wouldn't meet our requirements. Faxing your application also isn't an option.

You can have your documents photocopied and certified as true and correct by a Notary Public. If you choose this option you don't need to have them certified by way of an apostille.

For more information about our document certification requirements, have a look at the copies of documents – applicants outside Australia page on our website.

An alternative TFN application option is to wait until you are already in Australia and apply electronically. To be able to do this, you will need to meet three conditions.

You can read about those conditions as well as apply online for a TFN via the foreign passport holders, permanent migrants and temporary visitors – TFN application page.

Hope this helps.

Thanks,

ChrisR

TAX AMENDMENT

ali786 — Thu, 27 Feb 2020 07:03:54 GMT

I DID MY AMENDMENT FOR THE YEAR 2014-2015 AND 2015-2016 IN YEAR OCTOBER 2019.

DOES THIS AMENDED INCOME IS SENT TO CENTERLINK FOR REVIEWING MY FTB FOR THAT YEAR

OR ATO DOES NOT SEND INFORMATION TO CENTERLINK IF AMENDMENT IS PAST 2 YEARS.

My NOA was issued on 24 October 2019 for these 2 years. I called centerlink for any Top up FTB Payment for that year, so they send my uploaded NOA from humservices website for data matching. But uptill this date no data match has been done or any new of the FTB payment arrived.

I just want to know does ATO releases information to centerlink if amendment is for past 2 years.

Re: Capital gains tax and prior year income tax losses

MrG — Thu, 27 Feb 2020 06:54:05 GMT

TaxedoMask

Brilliant! Thank you so much. This will help me with my future plans.

Periodic AirBNB for the whole of own home and CGT

Ray_Dee — Thu, 27 Feb 2020 06:08:41 GMT

Dear ATO Community,

I own my little home and am away on business travels around half of the time in stretches of 1 month or so. If I let all of my place to short-term renters via say AirBNB when I am away anyway, do you think the 6-year rule will let me not consider any CGT consequences when I need to sell the place? Just to be clear, I am not going to dedicate part of my place to be rented out. I'd like to let AirBNB guests use all of it when I am away anyway, and when I am back I have all of my place to myself.

The alternative of having the place professionally valued before and after each AirBNB rental is clearly not practical. I really liked it how ATO was able to accommodate the phenomenon of ride-sharing such as Uber into a clear and unambiguous guide. I hope there will be a guide for the typical cases of AirBNB letting too some day.

With thanks,

Ray

Re: Loan from parents

ChrisR — Thu, 27 Feb 2020 06:00:08 GMT

Thanks for your post.

We have answered your question in another thread. You can access it here: Family Member lead money to help business

Thanks,

ChrisR

Re: Travel Expenses

Doc — Thu, 27 Feb 2020 05:51:49 GMT

Hi, one more point came to my mind from the paragraph 45 of TR 2019-D7. In this example the employee's both work places were related as he had only one employer.

In my case there is no relation between my employer in Brisbane and my private work in Bundaberg.

Doe sit mean that i have two different places of regular work and hence travelling expenses not deductible

It doesnt matter if two work places are connected with each other or not and my travel expenses are still deductible as my normal place of work and home is Brisbane?

Re: Obtaining a TFN from overseas.

DebC — Thu, 27 Feb 2020 05:42:04 GMT

Thank you for your response, always welcome!

I would understand the form you should be referring to is the Tax file number - application or enquiry for individuals living outside Australia, (NAT 2628).

If you check page 5 on these instructions you should be able to see what is required as acceptable proof of identity documents for someone living overseas. To sum it up once we receive the application we can search and verify our database accordingly with whatever data exists on file.

Hope this information helps!

Regards,

DebC

Re: Asset disposal closing business

MarkA — Thu, 27 Feb 2020 05:39:53 GMT

Welcome to the community.

What you are describing is essentially GST and the disposal of capital assets. Refer to the link I have included and it should provide the answer you need for when you sell, transfer or otherwise dispose of a capital asset.

Kind regards

MarkA

Re: Bad debt and personal income tax deduction

ChrisR — Thu, 27 Feb 2020 05:12:17 GMT

Thanks for your reply.

We understand that the question asked in the other thread may not have been the same as yours however the information and links in the posts should have been helpful.

We recommend that you read paragraphs 42 - 46 of Tax Ruling 92/18 as it expands on paragraph 7.

If you're not sure whether it applies to your circumstances, you may want to request an early engagement discussion. You can find out more about that by referring to the early engagement for advice page on our website.

Hope this helps.

Thanks,

ChrisR

Re: Trust

Sue83 — Thu, 27 Feb 2020 05:05:04 GMT

Thanks very much for the clarifications!

You've made it very clear to me where I confused myself!

Re: HELP Debt

ChrisR — Thu, 27 Feb 2020 04:44:37 GMT

Thanks for your post.

This is a question that gets asks frequently in our Community. You might want to have a look at the following thread: Help Debt

We also have a Knowledge Base Article that explains how your employer's withholding amounts are applied to your HELP debt. You can check it out here: Paying my HELP debt. Pay particular attention to the last section - Why isn't my loan decreasing?

If you're not sure how much your employer has withheld since the start of the financial year, refer to your payslips or have a chat with your employer. You can also use our tax withheld calculators as a guide.

Hope this helps.

Thanks,

ChrisR

Re: bring large amount of money from overseas

DebC — Thu, 27 Feb 2020 04:39:30 GMT

Welcome and thank you for your post.

Essentially money brought from overseas is not taxable when it constitutes income from money earned overseas as a non-resident. However, if you put your overseas money into your Australian bank account and earn interest from it, it will be assessable income to be included in your tax return. Refer to website Interest Income information.

Just keep appropriate records so if the ATO or Australian Security and Investment Corporation (ASIC) were to query it you can establish the source.

Hope this information is helpful.

Kind Regards, DebC

Re: forms

TaxedoMask — Thu, 27 Feb 2020 03:47:06 GMT

Did you make a mistake/omit information on your return? If so - amend the tax return.

Just be mindful of the amendment time limits.

Re: Retirement earnings

TaxedoMask — Thu, 27 Feb 2020 03:45:02 GMT

Your super withdrawals when you are over 60 are generally tax free.

The income you earn from working will form part of your assessable income. You should get SG on the wages you earn.

Re: Private Health Insurance Suspension while travelling abroad

TaxedoMask — Thu, 27 Feb 2020 03:35:24 GMT

Should be ok. Canstar have a guide on this.

Re: Trust

TaxedoMask — Thu, 27 Feb 2020 03:26:29 GMT

Trust is a "flow through" entity unless for some reason (eg. no beneficiary presently entitled) the trustee is assessed.

This means that the trust itself normally does not pay tax on the income it makes. Rather it's assessed in the "hands" of the beneficiary.

In the case of a company, if it receives say $1,000 in distributions. then it treats this as income - and pays $300 in income tax on this. Here the trustee doesnt pay any tax. Note that the trustee/trust and the company are separate entities and should be considered separately.

Re 2nd query, if the trustee buys a property, isn't it treated as acting for the Trust? Div 7A applies when private companies lending to the trust, but in this case the trustee buys and mangaing assets for the trust, div 7A shoudn't apply right?

Or maybe the Corporate Trustee as a beneficiary of the trust, its accounts need to be seperated from it's function as a trustee?

Holy ... yeah that's... "sub-optimal" to put it lightly. You cannot and should not ever mix the Corporate Trustee (in its capacity as trustee) with the Corprate Trustee (in its capacity as a beneficiary). These need to be kept distinctly separate - though generally speaking, this practice is highly discouraged as there is a high chance of getting things wrong and the consequences of getting it wrong are... severe.

Do you have an accountant and tax adviser? It sounds like you need proper advice that is outside the scope of this forum.

Re: Gift for house deposit

KylieS — Thu, 27 Feb 2020 02:51:01 GMT

Hi ,

If your brother is giving you money as a gift there is no tax applicable.

It he is going to be part owner, the money is still considered a gift but he would be subject to capital gains tax on his part of the property when you sell it.

KylieS

Re: NZ Citizens on the SCV 444 - CGT on shares?

NateH — Thu, 27 Feb 2020 02:50:39 GMT

Hi ,

We have a page on our website that covers capital gains for foreign residents and temporary residents.

You are correct that the 50% discount doesn't apply to foreign or temporary residents. There are no special rules except for if you are acquiring the shares through an employee share scheme.

Let us know if you have any further questions!

Thanks, NateH

Re: getting money from overseas, to an Australian bank account

KylieS — Thu, 27 Feb 2020 02:45:37 GMT

We wouldn't have an issue with the money being transferred from another country. I would suggest keeping all records.

You would need to check if is something that you should report on your income tax return. If you are an Australian resident for tax purposes you would need to report your world wide income.

KylieS

Re: Main residency and transfer title

KylieS — Thu, 27 Feb 2020 02:40:22 GMT

Hi ,

To claim the main residence exemption you have to have lived in the property to establish it as your main residence.

So the 6 year rule wouldn't apply if ownership changes and you don't live in the property/

If only a percentage is changed you will need to pro-rata the share of the property that can be claimed as the main residence.

You should also check out the changes for foreign residents and the main residents exemption.

KylieS

Re: Refinancing Investment loans

KylieS — Thu, 27 Feb 2020 02:30:15 GMT

Hi .

There is no problem with you consolidating the loans. However, if the amount of the loan for the rental property increases you will not be able to claim the increased interest.

Thanks

KylieS

Re: Tax refund cheque lost in mail

MayW — Thu, 27 Feb 2020 02:12:28 GMT

You will need to phone us on the individual line to request a replacement cheque or to have the refund issued electronically.

When you call us, you may need to update your contact and financial institution details.

Hope this helps.

Thanks MayW

Re: Tax for Employee Shares Scheme

KylieS — Thu, 27 Feb 2020 02:04:03 GMT

Hi ,

Thanks for your patience.

It is most likely that either you will have to pay income tax or your employer will have to pay fringe benefits tax in these circumstances. The timing and kind of tax depends on the particular details of this arrangement.

Ordinarily, your employer should be able to advise you about any tax consequences of this arrangement for you. If they cannot, it is recommended that you seek an Early-engagement-for-advice request

KylieS

Re: Trust

Sue83 — Thu, 27 Feb 2020 02:00:27 GMT

Thank you for your answers!

But I am a bit confused - with the 1st query, you said No, but also said "company receving the distributions pays tax at the corporate tax rate". In this case, the trustee is a corporate/company, and receives distributions as a beneficiary, so the trustee/company pays tax at corporate tax rate?

Or maybe the Corporate Trustee as a beneficiary of the trust, its accounts need to be seperated from it's function as a trustee?

Thanks!

Retirement earnings

Kimlovee — Thu, 27 Feb 2020 01:53:07 GMT

I retired last year but now want to work - if I work the last three months of the tax year but I have taken money out of my super (I am 63) will I get a tax bill based on my earnings and super withdrawal? Thanks in advance

Capital Gains Tax

nzbigglesau — Thu, 27 Feb 2020 01:31:39 GMT

Hi,

We inherited an investment property in 1995. What is the ato procedure for assessing the cost base? Also if their value is lower than my esitmate what steps should I take to resolve the difference? The cost base that was suggested to me (by family) is twice what I was expecting.

Thanks

Mark

Re: Visa Change

MayW — Thu, 27 Feb 2020 01:13:45 GMT

Welcome to the Community and great question.

You will need ask your employer or payroll to check how you answered question 7 and question 8 on your Tax file number declaration.

If you answered 'No' at either of these questions, you'll need to complete a withholding declaration and provide this to your employer, therefore going forward you will be taxed at the correct rate.

When lodging your tax return you can advise us if you 'Are you a Resident for tax purposes?'.

Hope this helps.

Thanks MayW

Re: Tax deduction eligibility for personal super contributions

Glenn4802 — Thu, 27 Feb 2020 00:59:44 GMT

If you are claiming a tax deduction for a personal contribution it becomes a concessional contribution. The person would be able to make tax-deductible contribution to take them to their concessional contribution limit. Additional amounts (without a tax deduction available) could be put into super as non-concession contributions. There is also a limit on these contributions.

This link gives details of the contribution limits.

Re: Family Loan

Glenn4802 — Thu, 27 Feb 2020 00:29:41 GMT

When the original amount is paid by your parents, the full amount would be considered a loan. When you obtain the mortgage to repay 50% the amount of the loan is reduced. There would still not be any tax issues with this proposal.

You have clarified that the remaining balance is to be treated as a loan. Centrelink should be comfortable with that, although they will deem your parents to have earned interest on this amount (even though the loan is interest free) when calculating any payment entitlements. It would also be wise to ensure that details of the loan are included in your parents' wills and that you keep records of any repayments that you make.

Lump Sum in Arrears Payment Tax Offset

Backpayment — Thu, 27 Feb 2020 00:25:32 GMT

Hi, can anyone please direct me to where I can find the calculations the ATO uses to work out what a Lump Sum in Arrears Payment Tax Offset should be? I have determined that my LSIAP meet all eligibility requirements. I would however like to know how this is worked out so I can check if the amount the ATO has come to is actually correct. Without knowing the formula used, it is really impossible to determine whether a figure is correct or not to allow for an objection. Thanks in advance, hoping someone can help.

Tax deduction eligibility for personal super contributions

Wongman — Thu, 27 Feb 2020 00:03:42 GMT

Hi, I'd like to clarify the answer to the following situation:

Person is 61 years of age working full time (income approx. $90,000 pa) and has sold one of their investment properties recently. Wishes to make a lump-sum contribution (non-concessional) from the sale proceeds into their complying superannuation fund.

Will they be able to claim a full tax deduction for this lump sum super contribution after submitting a notice of intent to claim form to the super fund? I've read the rules and believe it's ok but want to be 100% sure.

They are not over 65 and the sale is not their own home so it's not a downsizer contribution (I know these contributions do not qualify).

Your advice would be appreciated. Thanks

Re: Capital gains tax and prior year income tax losses

TaxedoMask — Thu, 27 Feb 2020 00:52:50 GMT

(a) At what point in the capital gain calculation are the prior year CGT losses expunged; (before or after discount?).

Brought forward capital losses (ie. capital losses from prior years) are treated in a similar manner to current year capital losses. Capital losses reduce the gross capital gain prior to discounting. If you have non-discounted capital gains, you can allocate the loss to these first.

(b) When the calculated capital gain is added to taxable income, can prior year income tax losses be used to reduce the "combined" taxable income and potentially a lower marginal rate tax band.

Yes, tax losses from prior years can reduce the net capital gain.

(c) After the net capital gain is added to taxable income does it also attract medicare levy?

Yes, medicare levy is levied on taxable income.

EDIT:

Prior years CGT losses: $30,000

Prior years income tax losses: $80,000

Discount Capital Gain: $400,000

400,000 - 30,000 = 370,000 gross (discount) capital gain = 185,000 net capital gain

185,000 - 80,000 = 105,000 taxable income

Loan from family ocerseas

Gurtej — Wed, 26 Feb 2020 23:48:28 GMT

Hey, i have a car loan here in australia and the interest rate is bit much, so i’m thinking to pat my loan off by the help from my family living overseas and i’m gonna return their money slowly without interest. Do i have to pay tax on the money i receive in my bank account from overseas or have to answer or inform anyone about it?

Re: TFN Declaration errors

TaxedoMask — Wed, 26 Feb 2020 23:16:00 GMT

They should fill out the form correctly (and its in their interest to do so).

You should not be amending such documents on their behalf.

Main Residence Exemption

Agni — Wed, 26 Feb 2020 22:57:36 GMT

Hi All

I have a residential property where I had been living till 2015, and since then I have let out the property from October 2015. Now I wish to dispose it and claim the CGT Main Residence Exemption. My question is : when is the last date that I can dispose off the property?

Many Thanks.

Re: TFN Declaration errors

CharlieH — Wed, 26 Feb 2020 20:01:48 GMT

Which would be fine if it were my form. It would just be nice to be able to bypass having to send the form back to the employees in these situations when I know what the correct details shoud be.

Private Health Insurance Suspension while travelling abroad

Sunshine99 — Wed, 26 Feb 2020 19:59:02 GMT

I am planning to travel and live abroard for a year. During that time I will earn little to no money but will retain my resident status in Australia for tax purposes. I am considering putting my private health insurance on hold during that time, as it wouldn't work while abroad, and get travel insurance for my time abroad.

I shouldn't be hit by the medicare levy in my tax return because my income will be under the $90,000 income threshold. However I would like to know if suspending my private health insurance for a while could have disavantages or consequences I should be aware about for my future tax returns.

Re: GST payable on a solar system purchase

John3 — Wed, 26 Feb 2020 19:42:18 GMT

Thanks Rachel. You have made it very clear.

Capital gains tax and prior year income tax losses

MrG — Wed, 26 Feb 2020 16:57:33 GMT

Hello and thanks in advance for your responses.

I have some prior year individual non-primary income tax losses and prior year CGT losses.

I'm looking at a future CGT event which will result in a capital gain. So at this point this is hypothetical and I will use some random numbers to help me understand under two different scenaries; one with underlying taxable income and the other without.

I'm trying to determine:

(a) At what point in the capital gain calculation are the prior year CGT losses expunged; (before or after discount?).

(b) When the calculated capital gain is added to taxable income, can prior year income tax losses be used to reduce the "combined" taxable income and potentially a lower marginal rate tax band.

Prior years CGT losses: $30,000

Prior years income tax losses: $80,000

Notional capital Gain: $400,000

Net Capital Gain (50% disc) $200,000

Scenaro 1: Taxable income for the year: $200,000

Scenaro 2: Taxable income for the year: $ Zero.

Thanks for your assistance.

Re: Tax on 2nd job as sole trader

BrettT — Wed, 26 Feb 2020 18:51:10 GMT

Hi there, I have a question that I believe is related here.

If my income from my job is lets say $50,000 but my business that i also run on the side as a sole trader has made a net loss of $20,000 (after purchasing machinery, advertising etc), would my income as a whole drop down to $30,000 for tax purposes as i would be putting my income from my regular job into the business to make said loss?

Thanks in advance.

Re: Family Loan

MJ2020 — Wed, 26 Feb 2020 13:45:21 GMT

Thanks for that - appreciated.

Does the situation change at all if I pay back half the loan amount by getting a bank mortgage and the remainder remains outstanding (with no interest) until my parents pass away when it is then deducted from my share of my eventual inheritence?

It is structured as a loan because my parents want to be able to demand repayment if they ever need the money back.

forms

regoh — Wed, 26 Feb 2020 12:47:11 GMT

does anybody know where i would find a form for Refund of franking credits for individuals 2015-16

Re: Payment instalment schedule

AriH — Wed, 26 Feb 2020 08:01:08 GMT

Hi ,

If you are referring to a payment plan schedule for your individual account, you can view your transactions for your accounts through Mygov and ATO online services. Log in to Mygov and select the ATO and make the following selections from the menu -

Tax > Accounts > Tax accounts

You will then be able to select the blue hyperlink to check your account transactions, similar to a bank statement. You should then be able to see whether or not we have received your payments.

As long as your payment plan is still active the status of your schedule will eventually update.

Otherwise, you can use these methods to contact us.

Thanks,

Ari

Re: Independent Living

AriH — Wed, 26 Feb 2020 07:39:57 GMT

Have a look at this information on our website to work out if your income is taxable or non-taxable.

As a contractor also you may also want to check out income and deductions for your business.

Hope this helps and let us know if you have further questions.

Thanks,

Ari

Taxation Payable on Superannuation Withdrawal

BobBrown999 — Wed, 26 Feb 2020 06:36:06 GMT

Hi,

I am considering moving overseas and living there for 10-15 years - I am 68 and receive the Age Pension. I also have a Super fund that is a fully taxed fund (not an untaxed Govt fund) and I withdraw lump sums as required to top up the pension. I am thinking of living overseas full-time for a while, and together with with Age Pension to withdraw funds from my Super account as required into my Australian bank account and then transfer the funds overseas.

My question is : As a non-resident do I have to pay income tax on any lump sum withdrawals I make from my Super fund.

Re: Trust

TaxedoMask — Wed, 26 Feb 2020 06:05:52 GMT

I know a corporate trustee can also be a beneficiary of the trust; if some income of the trust is distributed to the trustee as a beneficiary, does the trustee pay corporate tax on the distribution received for the year?

No, the company receving the distributions pays tax at the corporate tax rate.

And then can use the after tax money to buy property for the trust?

You can, but in doing so you are effectively loaning funds from (what I assume is) a private company to the trust -- which is caught under the Div 7A rules.

Re: TFN Declaration errors

TaxedoMask — Wed, 26 Feb 2020 05:57:46 GMT

Just fill a new one - you can even fill it out in the pdf then print & sign - its not that hard or onerous.

Trust

Sue83 — Wed, 26 Feb 2020 05:32:37 GMT

Hello,

Can someone please help to answer a question regarding Trust Distribution please?

I know a corporate trustee can also be a beneficiary of the trust; if some income of the trust is distributed to the trustee as a beneficiary, does the trustee pay corporate tax on the distribution received for the year? And then can use the after tax money to buy property for the trust? I got asked this question from a friend and my instinct answer is no, but I cannot find hard evidence to argue with him.

Can somebody please advise? thanks!

Re: Log Book App

macfanboy — Wed, 26 Feb 2020 05:19:05 GMT

The ATO APP has a Logbook part that allows you to record travel via GPS and expenses etc.

Log Book App

Kristian — Wed, 26 Feb 2020 04:58:56 GMT

Can you use a log book app instead of a hard copy log book?

Re: Travel Expenses

Doc — Wed, 26 Feb 2020 04:55:27 GMT

Thanks a lot for your input guys

TFN Declaration errors

CharlieH — Wed, 26 Feb 2020 04:38:25 GMT

One of our employees made an error in the tax file number on their tax file number declaration form. Will they need to submit a whole new form or is it possible to amend it somehow before sending to the ATO?

Re: Second job

Tammy — Wed, 26 Feb 2020 04:35:57 GMT

He is under 16 so most things won't apply for him which helps. I will however keep eye on bank interest, so cheers for that!!

Re: Second job

macfanboy — Wed, 26 Feb 2020 04:32:01 GMT

That is $18,200 total income including both jobs, Centrelink, bank interest etc.

Employee share scheme

vjuvarajan — Wed, 26 Feb 2020 04:32:19 GMT

Hi there,

Say I acquired shares at market rate (so discount reportable) under an employee share scheme and I sold the shares after they vested. What will the acquisition date be in determining if I am eligible for the 50% CGT discount? Would it be the allocation date of shares (while they were still restricted) or vesting date?

Any help would be appreciated. Thanks!

Re: Second job

Tammy — Wed, 26 Feb 2020 04:20:10 GMT

He will be pleased. He is only young so the chances of him earning that much will be small.

Re: Second job

macfanboy — Wed, 26 Feb 2020 04:12:09 GMT

The taxfree threshold is for all incomes combined.

If you have two jobs and the total taxable income will be less than $18,200 then you can claim it in both jobs.

Second job

Tammy — Wed, 26 Feb 2020 03:48:28 GMT

My son wants to take up a second job, can he claim tax-free threshold if BOTH incomes combined will be below the amount set?
Thank you

Re: Tax on deed of release

KylieS — Wed, 26 Feb 2020 03:43:55 GMT

HI ,

To give you more accurate advice we need some more information, please contact our early engagement team are so that they can help you.

KylieS

Shares capital gains tax while held in trust

taxman123 — Wed, 26 Feb 2020 03:43:02 GMT

Hey,

trying to work out my capital gains tax on shares i sold.

The shares were held in my fathers name in trust till they were passed onto me in 2015

i sold part of them in 2018 how do i work out the CGT?

Is the base cost from when i was passed on the asset in 2015?

ASX Price in 2015 - sold price = CGT?

Re: Travel Expenses

KylieS — Wed, 26 Feb 2020 03:16:45 GMT

The same rules apply and yes your expenses would be deductible.

KylieS

Re: Travel Expenses

Doc — Wed, 26 Feb 2020 03:12:11 GMT

Hi

Para 45 if the ruling applies where an employee works for an employer and the employer send this employee away.

But in my case I live in Brisbane and work for an employer 1 day a week. The employer is not sending me to Bundaberg for any duties.

I go to Bundaberg for a private clinic as a sole trader by my choice.
Will the travel and accommodation expenses still be deductible in my case?

Re: Travel Expenses

KylieS — Wed, 26 Feb 2020 02:43:33 GMT

Hi ,

Motor vehicle expenses incurred in travelling between home and a work location that is not a regular place of work are ordinarily deductible, as well as the costs of travelling from that location to home.

The motor vehicle expenses of travelling from your home to a work location in Bundaberg and back again on the same day, once a fortnight, are not expenses of travelling to a regular work location and are deductible. See paragraph 45 of TR 2019-D7. Further, it does not matter whether you are carrying on a business or are an employee. The same rules apply.

Thanks

Kylies

Re: Are advice fees for Income protection advice deductable?

macfanboy — Wed, 26 Feb 2020 02:41:57 GMT

Initial financial advice is never tax-deductible, only ongoing fees.

Re: Redundancy Payment for employee over 66 years of age

Glenn4802 — Wed, 26 Feb 2020 02:29:01 GMT

If age is the only reason why the redundancy is deemed to be non-genuine, the payment is an excluded ETP. This link gives further details.

Re: Sharing assets via digital platforms - when is it not a business?

ChrisR — Wed, 26 Feb 2020 02:07:40 GMT

Thanks for your reply.

With both scenarios, it ultimately comes back to the characteristics listed on the Are you in business? page. Both scenarios could be considered business activities.

If you want to discuss the scenarios in more detail, you can request an early engagement discussion. For more information about that, have a look at the early engagement for advice page on our website.

Hope this helps.

Thanks,

ChrisR

do i pay GST

Lingling — Wed, 26 Feb 2020 02:01:42 GMT

I am going to take a job offer, which I need to provide the company my ABN to get paid $100,000 annualy. If I take this offer, I will pay my own income tax and super; and I need to use my own tools for the work. Do I need to pay GST as well?

Re: Australian permanent resident - Investments and asset in Home country

Bruce4Tax — Wed, 26 Feb 2020 01:51:38 GMT

You need to declare foreign investment income, and tick the box if overseas assets are valued over $ 50 K.

Re: Family Loan

Glenn4802 — Wed, 26 Feb 2020 01:43:37 GMT

If the money has come from the personal savings of your parents there is no extra tax payable by either your parents or yourself.

Just in case the ATO or another Government agency knocks on your door in the future, it would be best to make sure that the arrangement is documented and the source of the funds can be fully explained.

If you parents currently, or my in the future, receive payments from Centrelink this arrangement may affect the amount they receive. For this and other reasons it is important to decide from the start to what extent the payment is considered to be a loan and/or a gift.

Re: GST payable on a solar system purchase

LydiaA — Wed, 26 Feb 2020 01:36:56 GMT

Hello Rachel

Thanks for this - very useful.

Redundancy Payment for employee over 66 years of age

Clarez — Wed, 26 Feb 2020 01:17:40 GMT

What would redundancy payment for an employee over 66 years of age get processed as, Excluded ETP or Non - Excluded ETP?

Thanks

Re: request TFN from overseas

Angellica — Wed, 26 Feb 2020 00:23:09 GMT

Thanks, Kylie. I believe I would like to confirm some information (I might be in denial)

1. The only way to apply is via postal mail? it is sort of expensive sending documents from my country. I was thinking of asking a friend that lives in Melbourne to print my scanned documents (certified copies of passport, birth certificate with respective official translations) and signed form application and ask her to forward them to you. Can this be done? or can I fax them from here?

2. The copy of my documents are certified by a public notary, would they still need an apostille?

Re: ATO Clearance Certificate

TaxedoMask — Wed, 26 Feb 2020 00:13:08 GMT

Just request a new clearance certificate with the correct name.

I would be very suspicious if on legal documents it's spelt one way but spelt differently on the clearance certificate.

Re: Refinance interest from paid off property

Miamia — Wed, 26 Feb 2020 00:05:03 GMT

Thank you!

Re: Reporting loss on cryptocurrency from the past

TaxedoMask — Tue, 25 Feb 2020 23:59:26 GMT

Amend prior year returns. Claim capital loss. Just be mindful of the amendment time limits. (read: don't wait)

ATO Clearance Certificate

Sarah05 — Wed, 26 Feb 2020 00:16:57 GMT

Clients name is spelt Marie on all legal documents and Certificate of Title however clearance certificate has come back with name spelt as Maree. We have drafted a stat dec to say that she am one and the same person, is this ok and can I seek that the purchaser accept this?

Australian permanent resident - Investments and asset in Home country

captainmathew — Tue, 25 Feb 2020 23:51:54 GMT

I am an Australian Permanent Resident. I have some assets and investments in my home country. Should I declare them when I file taxes in Australia?

Re: Is there a tax calculated for the CGT incurred on the sale of real property in the Philippines

angelstil — Tue, 25 Feb 2020 23:43:42 GMT

Thanks for the replies.

Quoted from Article 13 of the DTA:

(1) Income from the alienation of real property may be taxed in the Contracting State in which that property is situated.

(3) Subject to the provisions of paragraph (1), income from the alienation of capital assets of an enterprise of one of the Contracting States or available to a resident of one of the Contracting States for the purpose of performing professional services or other independent activities shall be taxable only in that Contracting State, but, where those assets form part of the business property of a permanent establishment or fixed base situated in the other Contracting State, such income may be taxed in that other State.

The property is in the Philippines and owned by individual who is a resident of Australia. It was not the main residence. The property does not earn any income. Does the ATO classify this as "business property of a permanent establishment or fixed base"?

Re: Missing to fill spouse info

ChrisR — Tue, 25 Feb 2020 23:21:03 GMT

Thanks for your post.

It depends on what you were completing as to how you can correct it, whether you can correct it or whether you need to correct it. To be able to help you, we will need some more information.

Thanks,

ChrisR

Re: Refinance interest from paid off property

Glenn4802 — Tue, 25 Feb 2020 23:14:29 GMT

When you borrow money, the interest is only deductible if the funds are used for an income producing purpose.

If your rental property is used as security for a loan to buy your family home (without an inome producing purpose), the interest would not be deductible.

Even if you used the funds for an income producing purpose e.g. to buy shares, the interest deduction would be claimed against the dividend income rather than the rental income.

Reporting loss on cryptocurrency from the past

doskoi — Tue, 25 Feb 2020 20:19:27 GMT

Hi everyone,

I'm just a little confused about what I need to do. So I do understand the loss from the cryptocurrency (investment purpose) can be carried on to the next years to take down the capital gains. On Tax Year 2017, I've lost $2982.80 and on Tax Year 2018, I've lost $1752.03.

During that time, I didn't think that cryptocurrency was going to be taxed, and forgot about it ever since and did not report it to ATO till now.

I do my taxes myself, and I want to figure out whether I'm supposed to amend the previous years and include those losses, or wait till the 2019-2020 tax report time, and report it then. I am quite lost on what category I must add this to if I was to amend the past reports.

Expertise and insight from someone who knows a lot about this would be greatly appreciated!

Refinance interest from paid off property

Miamia — Tue, 25 Feb 2020 18:20:15 GMT

Hello, I have a question, is I pay off my mortgage for my current property, in the future, if I use this property to get mortatge from bank again, can the interest be used for deduction? Say if this property generates rental income of 20k and the interest is 10k and depreciation is 5k, how much tax do I need to pay?

Thank you!

Family Loan

MJ2020 — Tue, 25 Feb 2020 15:19:40 GMT

My parents have kindly agreed to lend me money to buy my first home. The plan is that they will give me the full amount of the property purchase price so my cash offer is more competitive. I will then get a mortgage to pay back half of the loan interest free so my siblings can also benefit. The other half may never get paid back and no interest will ever be charged. What are the tax issues for me and my parents?

Re: Unpaid super

Raneen — Tue, 25 Feb 2020 14:27:14 GMT

Awesome NateH, thank you for your help

Re: mygovid

Annieb — Tue, 25 Feb 2020 11:18:50 GMT

I have a perfectly usable oppo RS9, which is running android 6.0, I have no intention of replacing my phone which has nothing wrong with it, I will have to go back to submitting paper BAS, I wonder how many othe people are going to have to resort to this, not very effecient for the ATO having to process all this paper.

Are advice fees for Income protection advice deductable?

SANLaw — Tue, 25 Feb 2020 11:03:59 GMT

Financial advisers have traditionally received commissions for the advice they give to establish and manage personal income protection policies. By way of an example, for a client income protection premium of $5,000, advisers receive commissions, $3,000 upfront to establish and $1,000 ongoing to manage the policy. In this case, the client is able to claim a tax deduction for the full $5,000 income protection premium which includes the commission payment to the adviser.

For an adviser who charges a fee for service rather than receiving a commission - the premiums for the same income protection policy as above without commissions would be $3,500. The adviser would charge an advice fee of $3,000 to establish the policy and $1,000 ongoing.

My question is are the advice fees associated with (1) the establishment and (2) the ongoing management of a personal income protection policy tax deductable.