Individual Tax Return Questions

If you believe this is incorrect, you should contact your bank to verify the income details for your accounts. The bank should notify the ATO in writing if this information is not correct.
You have 28 days to correct this information. However, if you have omitted the taxable income, you will not need to contact the ATO. They will amend your return and send you a new notice of assessment requesting payment of the additional tax, a general interest charge, and, in some cases, penalties. If you require assistance with your communication with the ATO, Roger Boghani can help.

A Living Away From Home allowance is paid by employers when they require an employee to work in an area that is different from their normal workplace, and the employer pays the costs to the employee for living away from home.

For example, I work and live in Melbourne, and after a few months, the company requires me to go to Regional NSW for a few months to do some work there. They pay me an allowance for the costs of living in regional NSW because they have requested that I work there for a time.

This is not taxable income, so I do not need to declare it on a tax return. It is an allowance paid by an employer to an employee and is not subject to tax by the employee, provided it is paid in accordance with the tax office guidelines. No expenses can be claimed against this allowance.

The living away from home allowance (LAFHA) is taxed to the employer under the Fringe Benefits Tax System. However, the employer is able to reduce the Fringe Benefits Tax payable on the amount paid to the employee for a maximum period of 12 months, provided the employee meets the following conditions:

• Maintains a home in Australia for their own personal use and enjoyment at all times whilst required to live away from home for their work; and
• Provides a declaration relating to living away from home.

If these rules are satisfied, the employer is able to reduce the taxable value of the LAFHA by:

• The amount of the employee's actual substantiated accommodation expenditure while living away from home; and
• The amounts incurred by the employee for food or drink costs while living away from home, less a statutory amount if applicable.

There is no inheritance tax in Australia. However, if you invest the income from the estate, then any earnings will be taxable.

You are wise to be cautious. Not all schemes are genuine and often promise large tax deduction that they say will be allowed by the tax office. It is wise to check out any investment scheme before putting your money into them.
If you invest in a risky tax scheme, you could lose some or all of your money, and you may have to pay back any refunds due to over-claimed deductions as well as interest and penalties.
Before investing in any tax scheme it is advisable to seek independent advice from a professional advisor and/or the tax office. Information and warnings about investment schemes and scams can be found on the Australian Securities and Investment Commission and the Australian Competition and Consumer Commission SCAMwatch website.

All income must be declared by each recipient on the same basis as the accounts are held. Interest from a joint account must be split 50/50. You cannot declare it all on your wife’s tax return and doing so could lead to an ATO audit.

Yes, he will have to lodge a return. A minor who earns over $416 in unearned income must lodge an income tax return. Personal exertion income (such as salary and wages) will still have tax payable on it, but that tax payable can be reduced by the low income tax offset. All unearned income will not attract the low income rebate and will be taxed at minors’ rates.

You do not have to lodge a full tax return. You can complete the Refund of Franking Credits for Individuals form, which can be lodged by telephone or mailed to the ATO.

In most cases, overseas pensions are taxable, and if you are an Australian resident, you will need to include the amount in your tax return. There are a few exceptions to this rule. Please call Roger Boghani at 0452 669 147 if you are not sure.

All income must be declared. This is because the tax office needs to determine what tax rate applies to your other earnings for the year. You may be entitled to an offset to ensure that no tax is payable on your benefit.

You can access the information required from Centrelink online services, Express plus mobile apps, and at self-service terminals at Department. Human Services Service Centres. Roger Boghani tax & business services can also look up the required information for you.

You will only have to pay tax on any earnings you make from the time that you moved to Australia. If the money that you brought with you earns interest in a bank account, you will have to pay tax on the interest.

The income will generally be taxable unless you have worked overseas continuously for more than 90 days and are working:

• As an aid or charitable worker employed by a recognised non-governmental organisation;
• As a government aid worker; or
• As a government employee deployed as a member of a disciplined force

In these cases, the income will be tax-exempt.

If your overseas income is not exempt, you will need to declare the income on your Australian tax return and may be entitled to a foreign income tax offset for any foreign tax you paid on that income.

We can assist you with any tax questions.

Your certain foreign employment income may be tax exempt in Australia.

There is no limit on the amount claimed each year, provided the expenses are necessarily incurred in earning your income. The expenditure must be work-related and you may need receipts to substantiate the expenditure. Keeping incomplete, incorrect, or no records at all may be limiting your ability to claim deductions. Advice can be obtained from a registered tax agent. Roger Boghani is happy to advise their clients on appropriate record keeping that will enable them to maximise their allowable deductions.

You are able to claim expenditure incurred in replacing, insuring, and repairing tools of trade that you use for earning your income. If the cost of any item is more than $300, it will have to be depreciated (i.e., claimed over its effective life) unless you are a sole trader. The amount you can claim will depend on what receipts you have kept and to what extent you use them for income-producing purposes. A sole trader (personal ABN) who is running a business can claim up to $20000 for each asset item as per current depreciation instant write-off rule.

There are two different methods for claiming work-related motor vehicle expenses, and each has different record-keeping requirements. To use the method that ensures you the best claim, it is advisable to keep a log book and all receipts for expenses (e.g., insurance, registration, repairs, services, tyres, etc.). You do not have to keep receipts for gasoline, as we can work that out for you using a yearly average formula. Your log book should be kept for a minimum of 12 consecutive weeks, and generally, it will be valid for five years unless there are significant changes in your circumstances. You also need to keep the opening and closing odometer readings for each year.

It is not necessary for you to use the same claim method each year. The choice of method should be made on the basis of which is more favourable to you and which you have the appropriate records for. If you don’t have a current logbook or have not retained all receipts, you will be limited in the methods you can choose. You cannot, however, claim any car expenses if your car is salary-bundled.

You cannot just claim $300. You must actually incur any expense before it is claimable. While you may not need receipts for expenditures up to $300, you must have spent the money, and it must be relevant to your employment.

Your travel must be relevant to your job function for you to be eligible to claim a deduction for those expenses. If this is the case and you have the necessary documentation, you can claim the cost of transport and incidentals. If your travel involved an overnight stay, you would be able to claim for meals. Travelling overseas also requires you to keep a travel diary.

If a taxpayer carries on all or part of their employment activities from home, some portion of the running expenses can be deducted. A record should be kept of the number of hours worked from home.

The commissioner’s rate of 67 cents per hour can be claimed for the hours the home office is used. The 67 cents per hour method has an allowance for the cost of electricity and gas, telephone, internet, stationary, and computer consumables. If using this method, no additional claim can be made for these expenses.

However, additional claims can be made for depreciation of office furniture and equipment, repairs to office furniture and equipment, and, if you have a dedicated office area, cleaning of the office. Alternatively, you can calculate all of the running expenses separately (including actual power used) and claim the work proportion of these expenses. Only running expenses can be claimed for a home office unless the home is being used as a place of business.

Where a home is a place of business (and is easily identified as such–for example, a separate entrance, signage, clients or customers coming to set area of your home, etc.), deductions can be claimed on occupancy and running expenses, including:

• Mortgage Interest
• Rent
• House Insurance
• Council Rates
• Insurance
• Repairs
• Cleaning
• Pest Control
• Maintenance
• Decorating
• Telephone
• Heating
• Lighting
• Depreciation.

You cannot claim a deduction for this because it is not a donation to the charity; rather, you are receiving something for your money. Buying an item from a charity does not make your purchase tax-deductible. The same applies to the purchase of raffle tickets. Only donations to registered charities are tax deductible.

Provided it gives full details of the supplier and date of purchase, the tax office would accept a credit card slip as proof of purchase. Taxpayers can make a notation on the document indicating the type of goods that were purchased. Many taxpayers use the internet to purchase or pay for their work-related expenses, and so the ATO will also accept Bpay or email receipts provided they contain the necessary information: date, supplier, nature of the goods, and amount.

Documentary evidence should be kept for five years from the date of lodgement of the tax return in which the claims are made. If you are depreciating an asset, the receipt should be kept until the item is fully depreciated (even if it is over 5 years).

You can make a voluntary payment at any time, but there are no tax advantages to doing so. It is a good idea to make the payment before June 1 when the annual indexation is calculated. The indexation rate for 2023 is 7.1%. You should be aware that if your HELP repayment income is above $48,361 (2022-23 rate) and you still have an outstanding HELP balance, you may also be required to make a compulsory payment when you lodge your 2023 tax return.

If you have salary sacrificed into super, the amount contributed is included in the reportable employer superannuation contribution amount shown on your PAYG income statement. This means that any entitlement you have to any benefits from Centrelink that are subject to an income test will take into account those amounts.

Any superannuation contributions for which you have claimed a tax deduction will also be taken into account. These amounts also contribute to the calculation of any child support payments and are used to determine your liability for such things as the Medicare levy surcharge or repayments of HECS-HELP debts. They may also impact any tax offsets that you are entitled to claim on your tax return.

• You don't have to lodge a combined tax return if you're married (as happens in some other countries). Joint income is recorded separately in each spouse’s tax return.
• You need to show on your tax return that you now have a spouse and disclose his or her taxable income each year.
• Your combined income is taken into account if you don't have private health insurance (you may have to pay the Medicare levy surcharge, effectively an additional tax of up to 1.5% if you are a high-earning couple and one or both of you do not have a qualifying private health policy), as well as when calculating some benefits, such as family tax benefits with the Centrelink.
• If you elect to change your name, the details will need to be updated before your tax return is lodged. The easiest way to do that is online, or you can do it by phone. You’ll need to verify your identity with the ATO when you do it, so you’ll need documents such as your birth certificate or marriage certificate. You cannot notify the tax office simply by noting it on the front cover of your next return, as used to be the case.

Since July 1, 2009, the definition of 'spouse' has changed to include same-sex partners. If you are living in a domestic situation, in a relationship as a couple, you will be entitled to claim the same family tax concessions that can be claimed by partners in an opposite-sex relationship. If you pass the relevant income and age tests, you may be able to claim an invalid and invalid carer tax offset if your spouse is genuinely unable to work because they are invalid or they care for an invalid (the invalid must be receiving a government disability payment to qualify).

You can't claim the tax offset if you maintain:

• Your spouse, who is an invalid or invalid carer and your adjusted taxable income is more than $104,432
• An invalid or invalid carer who is not your spouse and your and your spouse's adjusted taxable income is more than $104,432.

Depending on your combined income, you may also be entitled to claim a reduction in the amount of Medicare levy you pay. Any other tax benefits you may be entitled to will be determined on the basis of your income, not your gender.

To work out how much CCS you’re eligible for, the following factors are relevant:

• Your family’s income
• The hourly rate cap is based on the type of approved child care you use and your child’s age.
• The hours of activity you and your partner do.

The precise calculation is complex. You should visit the Services Australia website for more details:

https://www.servicesaustralia.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get

The amount of subsidised child care you can access per fortnight applies to each child.

The child care subsidy percentage you are entitled to depends on your family income. For the 2023 year, The Childcare Subsidy is payable to people with a family income of $356,756 or less. From July 2023 on, this threshold will increase to $530,000. The percentage rate payable will be 90% for people with family incomes of $80,000 or less and will reduce by 1% for every $5,000 over $80,000.

You have 12 months after the end of the year to lodge your tax return so that the FOA can check that you have been receiving the correct amount. If you overestimated your income you will receive a top-up payment, but if you underestimated your income they will require the over payment to be paid back.

For example, for payments received during the 2022-23 income year, you will be required to lodge your 2023 tax return by June 30, 2024. If you have a partner, their tax return will also have to be lodged by that date. Failure to meet the deadline could result in your payments being stopped and the repayment of amounts already received. If the tax office does not require you to lodge a tax return, then you should notify the Family Assistance Office.

Please note that the due date of the lodgement of the tax return is different with the ATO.

The Medicare levy surcharge is payable where your income (or your family income if you have a partner) is over a threshold amount and you and all of your dependents do not have adequate private hospital insurance. The threshold amount for a single taxpayer is currently $90,000 and for a sole parent or a family with one dependent child it is $180,000. These thresholds will increase to $93,000 and $186,000 for the 2023-24 tax year. If your income for surcharge purposes exceeds the relevant amount and you and all your dependents do not have private hospital coverage, you will pay the surcharge. If you take out private hospital cover part way through the year, you will be liable for the surcharge for the number of days during the year that you and all of your dependents did not have private hospital cover, so it is worth checking if you will be over the threshold as soon as possible.

Income for surcharge purposes includes your taxable income, exempt foreign employment income, investment losses, as well as reportable fringe benefits and reportable superannuation contributions. The private health insurance rebate and the Medicare levy surcharge are income-tested against three income tier thresholds. Higher-income earners will receive less private health insurance rebates or, if they do not have the appropriate level of private patient hospital coverage, the Medicare levy surcharge may increase.

If you are unsure whether or not you will be liable to pay the surcharge, you should contact Roger Boghani at 0452 669 147.

You are a temporary resident and, if your income for surcharge purposes is over the relevant threshold amount, you may be liable to pay the Medicare levy surcharge. The policy that you have is not sufficient to provide you with an exemption from the levy. However, if you are not eligible for medicare benefits, you may be able to apply for a medicare levy exemption, which will also exempt you from the surcharge.

How you apply for TFN depends on your circumstances. Choose from one of the following to find out about the application options for:

• https://www.ato.gov.au/Individuals/Tax-file-number/Apply-for-a-TFN/Australian-citizens-with-an-Australian-passport---TFN-application/ – for people who are 13 years old or older.
• https://www.ato.gov.au/individuals/tax-file-number/apply-for-a-tfn/australian-residents---tfn-application/– for Australian citizens and other people who are residents of Australia for tax purposes but don't have an Australian passport.
• https://www.ato.gov.au/individuals/tax-file-number/apply-for-a-tfn/foreign-passport-holders,-permanent-migrants-and-temporary-visitors---tfn-application/– you need to already be living in Australia and will need a valid foreign passport or travel document (visa).
• https://www.ato.gov.au/individuals/tax-file-number/apply-for-a-tfn/people-living-outside-australia---tfn-application/ – for non-residents of Australia for tax purposes with Australian sourced income. You need a TFN to claim a refund of tax withheld.

Provided you have applied for a tax file number, you have 28 days to quote your tax file number to your employer.

One of the ways you can reduce the tax you pay is by sacrificing your salary in return for employment related benefits. The advantage of sacrificing your salary is that your benefit is purchased with pre-tax dollars. Find out more information and tips on salary sacrificing.

https://www.ato.gov.au/individuals-and-families/jobs-and-employment-types/working-as-an-employee/salary-sacrificing-for-employees

If your salary is sacrificed into superannuation, this will attract a contribution tax of 15%. If your income exceeds the tax-free threshold for that year, you will be taxed at a higher rate. As you are paying 19 cents in the dollar (plus Medicare) for any amount you earn over $18,200, this is greater than the 15% payable in contribution tax.

However, any amounts that are sacrificed into superannuation will also be taken into account for the income tests that determine liability to pay the Medicare levy surcharge and the entitlement to claim dependent tax rebates and seniors tax offsets.

You would be a non-resident for tax purposes because you have not settled in any one place and established a home during your stay in Australia. However, you are also subject to the working holiday maker tax rates, which are 15% on all income earned up to $45,000. This also means that you are not entitled to the tax-free threshold. Accordingly, you will not get your tax back when you lodge a tax return because you will be charged working holiday rates. This means that you have to pay tax on every dollar of your taxable income. You will not have to pay the Medicare levy, though.

https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency/australian-resident-for-tax-purposes
https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents
https://www.ato.gov.au/tax-rates-and-codes/tax-rates-foreign-residents

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

It is necessary to complete a tax return to the date of death if a return has been lodged in the past few years. This return, marked as final, must show all income received to the date of death.

https://www.ato.gov.au/individuals-and-families/deceased-estates/doing-trust-tax-returns-for-the-deceased-estate/when-and-how-to-lodge-returns-for-a-deceased-estate

Please check out the due dates for each month for your accountant, business, individual and SMSFs obligations:

https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge
https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/tax-agent-lodgment-program
https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/due-dates
https://www.ato.gov.au/tax-and-super-professionals/for-tax-professionals/prepare-and-lodge/tax-agent-lodgment-program/tax-returns-by-client-type/individuals-and-trusts