All Personal tax questions posts

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: 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

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?

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: 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: 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: 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: 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

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

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?

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.

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: 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: 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?

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: 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: 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

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.

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: 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.

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"?

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?

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.

Tax on sale of UK property

weaseltron — Tue, 25 Feb 2020 07:31:32 GMT

Hi there.

I purchased a property in the UK in 2007 for 200k GBP. It was my residence in the UK until 2011 when I moved overseas and it has been rented out ever since. I am now thinking of selling.

The property has been valued at 200k and, assuming it sells for this amount (I.e. there will be no Capital gain) what would my potential tax liability look like in Australia?

Thanks in advance

Re: Re-loaning from individual to a trustee of discretionary trust on P&I terms

KylieS — Tue, 25 Feb 2020 04:58:00 GMT

Hi ,

We will check this one out and get back to you.

KylieS

Re: Foreign Tax Liability

ChrisR — Tue, 25 Feb 2020 03:42:48 GMT

Hi ,

Depending on your circumstances, you may find the following threads helpful:

Our contact centre can provide general information however depending on the complexity of your situation, you may need to get in touch with us via a different channel. Refer to the tailored technical assistance page on our website for more information.

We also recommend that you contact HMRC about your tax liability.

Thanks,

ChrisR

Re: Target redundancy + new job salary within the same FY

Glenn4802 — Tue, 25 Feb 2020 02:47:18 GMT

The payment relating to any unused leave is included in your taxable income. However, the tax on this is capped to a maximum of 32% (30% standard tax plus 2% Medicare). So even if this payment was to push your income into the 37% bracket, you would still only have to pay 32% on the amount.

If the redundacy component is all tax free, it will not affect the amount of tax you pay. So you would not be paying 37% on any of that amount. If however, this payment is higher than the tax free amount, the excees only is included in your taxable income. If this was the case you might be paying higher rate of tax on the excess.

Re: Loan from parents

JessicaSpring — Tue, 25 Feb 2020 02:43:03 GMT

Hi Jodie,

The money my parents borrowing to help out my business to pay off the bills. no income generated on the money borrowing. but i will return this money as soon as i got the payment from my customers. so that money they lending to me is to help for short term. Can this consider as gift?

Thank you.

Re: Target redundancy + new job salary within the same FY

mightybob — Tue, 25 Feb 2020 02:28:15 GMT

Thanks for that.

So, assuming all those steps are correctly followed (and I believe they were). The money deposited to me that makes up the "package" (post tax), does that then go towards my earnings for the year?

For example, assuming pre-redundancy I was in the tax bracket of 32.5%, now if I include the redundancy money + my new salary (for this Financial Year), it will take me to the next bracket of 37%. Is this how it works or is the redunancy payment excluded because it has already had the appropriate tax taken out?

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

ChrisR — Tue, 25 Feb 2020 02:25:48 GMT

Thanks for your post.

is correct. You will need to check out our CGT rules as well as the Philippines tax rules to determine whether article 13 paragraph 3 applies as it will depend on the facts of your scenario.

You can find out more about our CGT rules and how they apply to your home and other real estate on our website.

If you would like us to take a closer look at your situation, you might want to request an early engagement discussion. Check out the early engagement for advice page on our website for more information.

Hope this helps.

Thanks,

ChrisR

Back payment of leave on redundancy

rxqueen60 — Tue, 25 Feb 2020 02:16:13 GMT

Hello there, I was made redundant a few years ago and have recently been notified by my employer that the payout of my leave was understated and that I'll be receiving an additional amount. Will this be taxed at the concessional redundancy rates? Or marginal given it was a few years ago? Thank-you!

Re: Target redundancy + new job salary within the same FY

Glenn4802 — Tue, 25 Feb 2020 02:12:01 GMT

The payment you received when leaving your old job is likely to contain the following components.

1. Standard pay for work performed up to your last day of work. This is simply taxed at your marginal rate.

2. A lump sum covering any unused leave e.g. annual or long service leave. In the case of a redundancy, these amounts are tax at a maximum of 32%.

3. A lump sum relating to you being made redundant. Assuming a genuine redundancy most, if not all, of this amount is likely to be tax free. This page includes details of what is considered a genuine redundancy and how to work out the tax free amount.

You will need to do your own sums. However, if your former employer withheld the correct amount of tax from any lump sum payments, it is unlikely that you would be hit with an end of year tax bill.

Re: Multiple novated car leases

Glenn4802 — Tue, 25 Feb 2020 01:16:12 GMT

Whilst there is nothing in the tax law that would limit the amount of pre-tax contributions, you would need to check with your employer and/or salary packaging provider to see if they limit the amount.

Re: Self-education deduction for childcare, and the childcare rebate/childcare subsidy

macfanboy — Tue, 25 Feb 2020 01:06:37 GMT

does the childcare rebate/childcare subsidy impact my ability to claim childcare as a self-education expense?

No, it doesn't but there must be a "nexus' between the study and your current employment.

Seld Education expenses

Re-loaning from individual to a trustee of discretionary trust on P&I terms

pwnchi — Tue, 25 Feb 2020 00:54:44 GMT

Sorry i have another question regarding trustee loans.

We are looking at creating a discretionary trust with myself as trustee. My wife and I (the individuals) are going to borrow against our owner occupied home, split 100,000 loan on P&I terms, paydown and redraw to onlend to the trustee on P&I terms.

Few questions
1. I am confused in regards on how to word a loan to reloan the funds to the trustee, so that the individual would pay the same amount of interest to the bank that they receive from the trustee. If the loan to the trustee was 'on the same terms as receieved by the lender' would this suffice, so that each year the individuals net interest would be zero??
2. I am also confused if the onlending loan is made later in the life of the loan, would this wording still be okay? As the principle and interest calculations would be different to the first year of a loan, I'm not sure this affects anything.
For example if the loan was made on the second year of the loan
- individual pays $4000 interest, $2000 principle
- trustee pays the individuals the same amount, and the $4000 interest is deductible?

3. Would a loan on such terms be sufficient without any security? I believe the loan would need be on arms reach, and onlending at P&I terms with the same rate without any security may not be what you would do to a stranger?

Thanks i hope that makes sense.

Re: Bad debt and personal income tax deduction

Ndkaki — Tue, 25 Feb 2020 00:41:54 GMT

Hi Chris - thanks for the response, but that thread was not relevant to the circumstance in this query.

Re: Self-education deductions and unpaid maternity leave

TaxedoMask — Tue, 25 Feb 2020 00:41:35 GMT

Sounds like s8-1 deductible to me.

Re: Self-education deduction for childcare, and the childcare rebate/childcare subsidy

TaxedoMask — Tue, 25 Feb 2020 00:39:22 GMT

Childcare is not deductible.

At most it offsets the 250 reduction for self education. This is based on the net amount you pay after subsidies.

Re: Self-education deductions and unpaid maternity leave

macfanboy — Tue, 25 Feb 2020 00:37:18 GMT

If you have received work-related income and paid tax then you should be able to claim Self-education expenses.

Self-Education expenses.

TR 98/9

Re: Self-education deductions and unpaid maternity leave

Jennifer1 — Tue, 25 Feb 2020 00:26:32 GMT

Thanks, during the year of claiming I had taxable income - my baby wasn't born exactly on July 1 🙂

Re: Self-education deductions and unpaid maternity leave

macfanboy — Tue, 25 Feb 2020 00:14:58 GMT

Which income would you be claiming it against?

If you don't have any employment income and haven't paid any tax, then there is no point in claiming it as you can't reduce $0 tax any further.

Self-education deduction for childcare, and the childcare rebate/childcare subsidy

Jennifer1 — Tue, 25 Feb 2020 00:14:12 GMT

Hi,

does the childcare rebate/childcare subsidy impact my ability to claim childcare as a self-education expense?

Thanks, Jennifer

Re: my.gov, filing overseas and accessing tax info

macfanboy — Tue, 25 Feb 2020 02:08:54 GMT

If you lose access to the mobile phone you use for myGov codes you may be able to update your account with a new mobile number so you can sign in to your account using myGov Access app.

The myGov Access app creates a one-time use code on your mobile device. You must update your sign in option in 'Account settings' before you change or remove the app from your mobile device. You can download and set up myGov Access on your mobile device from the App Store or Google Play.

If you're unable to use the myGov access app code, you'll need to create a new myGov account and relink to ATO online services. If you don't have the required information to link to ATO, you'll need to phone us to request a linking code.

Self-education deductions and unpaid maternity leave

Jennifer1 — Tue, 25 Feb 2020 00:07:18 GMT

Hi,

I was working at a job and went on paid, and then unpaid maternity leave to have a child.

During this time I undertook study which met the criteria for being self-education expenses as I improved specific skills and knowledge in my current employment. I have successfully claimed self-education expenses back for this education.

My question is - if I studied this while being on unpaid maternity leave - still with the same employer and less than 12 months in duration and immediately after taking paid maternity leave - am I able to claim self-education expenses?

Many thanks, Jennifer

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

TaxedoMask — Tue, 25 Feb 2020 00:05:17 GMT

DTAs are a framework. You need to look into the laws of each jurisdiction to determine what the outcome should be.

Where is this property? If its in Australia its TARP. If its foreign property, its falls under the CGT rules when the person becomes a tax resident.

Multiple novated car leases

Shane14711 — Tue, 25 Feb 2020 00:04:52 GMT

Hi everyone,

Im looking at taking a novated lease on a a second vehicle. I want to know if the pre-tax deducations for both vehicles are combined or is there a threshold/cap to what can be deducted "pre-tax"?

Thanks

Re: Deduction

TaxedoMask — Mon, 24 Feb 2020 23:58:06 GMT

No.

Taking a leaf out of TR 97/12 which deals with deductiblity of uniforms, at para 12.

Generally, the costs of living, such as the purchase of conventional clothing, food, drink and shelter are private or domestic in nature and therefore not deductible.

Tax refund cheque lost in mail

kgcheung — Mon, 24 Feb 2020 23:53:47 GMT

Hi there,

I recently moved after I filed my taxes with a new accountant. Usually I get my refunds electronically, but for some reason this new accountant filed it for a cheque. Subsequently the cheque was lost in the mail.

How do I go about replacing it? Do I order a replacement cheque or can I ask them to refund electronically into my account?

Thanks very much.

Re: Loan from individual to trustee of discretionary trust

KylieS — Mon, 24 Feb 2020 22:35:58 GMT

Hi ,

, has provided you with some great information.

We will need to check with our specialists to answer your last question, will get back to you as soon as we can.

KylieS

Target redundancy + new job salary within the same FY

mightybob — Mon, 24 Feb 2020 22:35:56 GMT

Hi,

I received a redundancy payout as part of a targeted redundancy at my last place of employment. 2 months later I have managed to secure new employment (all within the same Financial Year). In total, inclusive of the payout + new salary, it looks like it would theoretically push me over in to a new tax bracket for the remainder of this Financial Year.

My question is how will my earnings be taxed for this Financial Year (given that I received the payout)? I'm just trying to understand so I can take the appropriate action to ensure I don't get caught come Tax time.

Thanks.

my.gov, filing overseas and accessing tax info

Punished — Mon, 24 Feb 2020 22:02:34 GMT

I live in the US, I've been living overseas since 2013, but briefly stayed in Australia in 2019, during which I worked the election.

I have not recieved any documents from the AEC, but am trying to file my taxes.

I cannot access the my.gov website as I do not have an Australian mobile phone number.

I have tried contacting the ATO, livechat services and even my member of parliament to no avail. Each shunted me on to another department or address, all leading back to logging in to my.gov, which I am still unable to do.

Any suggestions for a way around all of this tape? I just need the income data and I ought to be able to file via post, but this seems an utterly unreasonable process for what likely will result in a reimbursement of less than 100AUD in my favor.

Re: Car expenses - depreciation

Glenn4802 — Mon, 24 Feb 2020 10:21:23 GMT

You would be able to claim a personal deduction for the business related portion of any depreciation. The amount you can claim may be limited if the cost of the car is higher than the depreciation cost limit.

Re: Calculate redundancy payment

ChrisR — Mon, 24 Feb 2020 08:23:54 GMT

Thanks for your reply.

Assuming that the salary sacrifice arrangement is an effective one, your aunt's employer won't withhold any tax from the unused leave payment. They will only need to withhold tax from the ETP.

For more information about the rules for an effective salary sacrifice arrangement, have a look at our website.

The salary sacrificed contribution will be considered a concessional contribution. In turn, your aunt's super fund will be required to withhold 15% tax from it.

Hope this helps.

Thanks,

ChrisR

Re: Payment plan

Chelle1 — Mon, 24 Feb 2020 07:58:20 GMT

thank you for your response. So assuming I have no other debts, the money will just continue to accrue in my name until I stop the payments? I guess I’m just making sure the PRN stays valid since the payment plan is paid out and the payments will continue be credited to my account.
Thanks again.

Re: Transferring Money from the UK

macfanboy — Mon, 24 Feb 2020 07:34:25 GMT

No issues then, except if you earn interest whilst waiting to buy the house.

Re: Transferring Money from the UK

Caithann — Mon, 24 Feb 2020 07:25:32 GMT

Hi, no we don't own another property.

Thanks

Re: Transferring Money from the UK

macfanboy — Mon, 24 Feb 2020 06:50:01 GMT

As long as it is not seen as income then there are no tax consequences for transfering your own money.

I presume that you both don't own another house yet?

Transferring Money from the UK

Caithann — Mon, 24 Feb 2020 06:46:34 GMT

Hi, My husband has sold a house in the UK. We plan to transfer the money to our Australian Bank Account to put towards a house purchase in Australia.

I am an Australian Citizen while my husband is on a woking visa. The house was registered under his name alone.

What are the tax implcations for transferring a large amout of money from a UK account to an Australian account? Are there any financial implications if the funds are being used to purchase a property here?

Thanks advance if you can answer any of these questions.

Re: Payment plan

MayW — Mon, 24 Feb 2020 06:00:05 GMT

I’m glad you were able to address the automatic payments with your financial institution.

A refund to you will depend on the following circumstances:

• Any credit will be offset against a debt you may with us first.
• Do you have any future activity statements due to be lodged and you are expecting a liability? If so, this credit will offset against this activity first and you can either pay the difference of the activity in full by the due date or consider a new payment plan.

If you have no ongoing obligations with us you will need to phone us on the business line to request a refund.

For more information have a look at the BAS refund page on our website.

The Payment Reference Number (PRN) quoted can be used for future payments towards activity statements.

Hope this helps.

Thanks MayW

Re: International Taxation on Super

ChrisR — Mon, 24 Feb 2020 05:27:33 GMT

Thanks for your reply.

The information on our website explains how you will be taxed in Australia. We can't comment on how much tax you may have to pay in France. In turn, we can't say whether you would be better off returning to Australia before claiming your super.

We recommend that you get in touch with the French tax authority to find out how your Australian super lump sum would be taxed in France. The taxation of foreign-source income in France page from the French tax website may be a good place to start.

Hope this helps.

Thanks,

ChrisR

Re: Super excess contribution

ChrisR — Mon, 24 Feb 2020 05:08:07 GMT

Thanks for your question.

The tax agent portal is no longer available. If you are able to attach the form, you could send it to us as a message (Superannuation - Other) via the new online services for agents, otherwise it will need to be submitted via post or fax.

For more information about applying to have contributions disregarded or reallocated, have a look at our website.

Thanks,

ChrisR

bring large amount of money from overseas

sislammontu — Mon, 24 Feb 2020 04:45:33 GMT

Want to bring large amount of money from overseas to buy a property.

Car expenses - depreciation

sherlynneoh — Mon, 24 Feb 2020 04:23:58 GMT

Hi

I am a sole director and employee of the company. I have been using my own car for business purposes and reimburse my car operating expenses like fuel, petrol, registration, insurance for business % (around 50%) from my company. (Based on the log book % that I have recorded)

I am planning to buy new car under my personal name and still using them for both business and private purposes. Can I claim depreciation of the car in my personal tax return based on log book method business use % and continue reimburse all the operating cost such as fuel, insurance, registration and etc from my company?

Thanks

Re: UK Pension transfer.

ChrisR — Mon, 24 Feb 2020 04:11:54 GMT

Thanks for your post.

We have answered a similar question previously. You can check out the answer here: Re: UK pension lump sum

The tax on transfers from foreign super funds page on our website explains everything you need to know.

If it is transferred to an Australian super fund, your wife can declare the applicable fund earnings component on their personal tax return or ask their Australian super fund to declare it. The fund will pay 15% tax.

If it is transferred directly to your wife's bank account, your wife will need to declare it on their personal tax return. The applicable tax rate will depend on how much your wife's total taxable income is that year. If she has no other taxable income and the applicable fund earnings component is $18,200 or less, it will be tax free.

You can have a look at our website for more information about individual income tax rates.

Hope this helps.

Thanks,

ChrisR

Re: Working Abroad for Australian Company

AriH — Mon, 24 Feb 2020 03:59:08 GMT

You can certainly be an Australian resident for tax purposes whilst you reside overseas. You will first need to work out your tax residency and the outcome will determine your next steps.

We have answered a similar question previously about an employee of an Australian company living abroad.

Hope this helps.

Ari

Re: capital gains/loss

TaxedoMask — Mon, 24 Feb 2020 02:13:52 GMT

No. You cannot offset prior year gains with current year losses. These losses are carried forward to use for future capital gains.

Re: ATO Statement of account in Credit??

DebC — Mon, 24 Feb 2020 01:24:30 GMT

Thank you for your question.

If your amendments have been finalised and you haven't received your refund within a few days you may need to contact us so someone can look into your account and fix it up for you.

You can use this attached link to check the progress of return.

Hope this helps.

Thanks, DebC

Re: Problem with lodging my late GST

AriH — Mon, 24 Feb 2020 00:54:05 GMT

If you want to backdate your GST registration we can help you do this over the phone and we will give you information specific to your circumstances.

Hope this helps.

Ari

Visa Change

jayshree_butler — Mon, 24 Feb 2020 00:28:06 GMT

Hi,

I have recently moved from a working holiday visa to a partner visa (482). My employer is aware of my visa change however, I was wondering if I needed to notify ATO or my employer about my change in residency for tax purposes?

Thanks

Jay