Many business transactions and reporting are done with online services such as PLS (Practitioner Lodgment Service), ELS (Electronic Lodgment Service), ABR( Australian Business Register) and Tax Agent portal. The working nature of these services is explained in details:
Practitioner Lodgment Service: PLS can be made by using standard business reporting enabled software. If anybody uses desktop software they can place reports through the PLS.
Electronic Lodgment service: ELS can be used for income tax returns to work with clients in terms of electronics.
Tax agent portal: This can be utilized to communicate in online with client to update and view clients registration details, to view account information of clients, and to prepare, view, print, lodge activity statements of the clients
Australia Business Register: A person can access their client’s ABN details in online by using the ABR external link for this person have to use AUSkey to login to apply for TFN, to change safe ABN information
A salary sacrifice commonly known as total remuneration packaging or salary packaging. It will be an arrangement between an employee and an employer, in which the employee accepts to sacrifice their future rights to wages or salary in the back for the employer giving them with welfare of a similar amount. The salary sacrifice for not for profit organization are similar as for business and a successful salary sacrifice will explain the amount of wage or salary to be sacrificed. But this amount should be entered before the employee to be paid and prior to any work is done. An effective arrangement is as follows:
• The employee providing income tax on decreased wages or salary
• The employer may be legally answerable to pay FBT (Fringe Benefits Tax) on the fringe welfare given.
• The employer may have to provide the payment summary reports of certain benefits of employees.
Startupbootcamp is a large idea categories which comes first global accelerator in Australia in 2017. Startupbootcamp receive first year (2016) is $600,000 with potentially followed in subsequent years. The opening of funds in hardware and provide core fund for launch accelerator program in 2017.
The funds provide startupbootcamp accelerator in Melbourne and confidence the State Government program will encourage local sponsors such as Google, Cisco, AWS, Salesforce and Intel. The engaged corporate, service and university will enhance a start-up community and build practice in IoT and DataTech Industry. On 3rd October, fast track conducts a one day event as recruitment period with high potential. After opening in November, to inspire the next generation of creative solutions. The vision is to create a thriving ecosystem.
Objective of launchvic
LaunchVic was created by a Labor Government to drive a new ideas and create jobs. The project is to help young companies, creative idea jobs and industries support Victoria which explains Minister for Innovation, Small business and Trade, Dalidakis, Philip. Startupbootcamp was selected in the Melbourne start-up ecosystem:
• Accelerator focus on both software and hardware
• Bring an international practice in Melbourne
• Connect outside word specifically Europe, Asia and the US
• Ecosystem grows by recruits from APAC region.
What are the major industries turning to the non-credit bank?
The construction, trade and retail industry are turning to the non-credit bank. The trade industry have high demand follow by construction, accommodation and food. Retail trade and transport held on fourth and fifth place. Motor and brick bring online competitors, to pay longer suppliers which demand the cash of flow.
What is the survey finding?
The survey found a great demand for non-credit bank from the construction industry. The report indicates an entire supply of units in Melbourne and the Australian market cannot longer. This sector gone very cold and strong indicator. Now turning to non-credit, many businesses can get the period of transition. The bank sign for construction that are pulling back and bank loss in areas. Non-bank business lender survey was found the loan size and term of 20 months. Totally, 75 percent of 29 lenders participated the demand of credit product were increasing or decreasing. 2000 + applications were received 15percent lenders. This result indicates thriving and demand products such as forestry, health care, fishing, agriculture, gas, electricity and water services.
Generally, the more deductions investors can claim on a property. For property investor, the important thing is to claim many deductions as you are rightfully designated to. The following are the most common tax deduction you can claim on your investment property. They are,
The largest tax deduction in a negative gearing arrangement is interest. The interest acquired on money you have borrowed for the property is tax-deductible when provided your property is available for rent.
2. Tenancy costs:
The cost of advertising for tenants is tax-deductible. So are authorize fees paid to property managers who secure tenants on your behalf. Any expense acquired in relation to adapting or changing the lease with your tenant is also tax-deductible.
3. Repairs and Maintenance:
Due to tenant wear, the cost of restoring anything to its original condition and also tear is tax-deductible, and it is not an initial repairs. When the property was purchased, and that existed the damage.
4. Capital works:
Capital works costs are normally not tax-deductible upfront. Capital becomes part of the building and land such as structural alteration, extension or and structural improvement.
Tax-deferred accounts: Withdrawals from a traditional IRA and 401 (k) will be taxed at ordinary income, which means top tax bracket and prepare to feel the pain.
Taxable accounts: The profit on sales, investment such as bonds, stocks, mutual funds and real estate are taxed at capital gain rates depend on long owned investments. The long term capital gain rate is applied to assets can hold in longer year and quite favorable.
Roth IRA: Give a high five retirement portfolio as long as Roth has been open in at least five years and older withdrawals are tax free.
Social security: Many retire are surprised and dismayed is to discover that portion of social security benefits could be taxable.
Pensions: The private and government pension is usually taxable at ordinary income rate and assuming can make no after tax contribution to the plan.
Annuities: The annuity purchase can provide a retirement income, a portion of the payment can be represented by the principal is tax free and taxable is rest. The insurance company can be sold in required annuity taxable. The different rules can apply for bought an annuity with pretax funds. In case of 100% payment will be taxed as ordinary income.
If a person wants to fill an objection form means they must include certain things such as, it should be with full details regarding the reason to put an objection, a person should provide the declaration that supporting and documentation and information provided for the objection was correct and true and last have to be checked it was signed with date. In order to avoid the process to be delay person also include are described as follows:
• Full details which include full name with address, tax file number and Australian Business Number of the taxpayer if they a person use any entity.
• Full details along with a reason why they want to object, including tax period or relevant years if it’s necessary.
• Supporting documents and detailed information which is required for the process
• The relevant facts, information and documents, arguments these are the these which support for the objection.
There four tips for tackling your tax. They are,
• Pull together your paperwork
• Claim your deductions
• Lodge your tax online or with a tax agent
• Lodge your return before the deadline.
Initially, you will need to ensure you have all the paperwork and information, before you lodge your tax. And then you need to ensure your tax return is accurate. The ATO will prevail some information from super funds, banks and Centrelink into your online tax return from august. So, if you complete your tax return after this process, you can save time, and less likely to make a mistake. You can claim a deduction for some costs and that should be related to your job. And the expenses must be real, relevant, recorded. You must spend the money yourself, expenses must be related to your job and you must have a record for proving you paid or not. You can lodge your tax return using myTax through ATO app. It is quick, safe, easy and secure. If you are lodging tax return online, then you have until 31st October 2016 to lodge it or contacted the tax agent to qualify
There four tips for tackling your tax. They are,
The new year begins before you can start the tax planning can help to maximize benefits and minimize taxes Some tips can provide to make the best upcoming tax season.
1. From the retirement plan distributions can pay estimated tax withholding
The IRS can require to pay an estimated tax and avoid penalty for underpayment tax. The estimated tax payment may be required to make:
• After 2015, subtracting withholding and credits can expect at least $1000 in tax.
• The salary from the amount withheld and other taxable income is less than small of 90% tax will owe for the current tax year or 100% tax owed for the previous tax year will be increased by 110% of adjusted gross income in certain amounts.
2. Make charitable donations
The plan makes a charitable donation can keep in mind, in order to receive a taxable benefit can itemize your deductions. The standard deductions are not eligible for these benefits and apply for charitable donations.
• During the year, the pledged amount can be contributed and counted, you want to donate a cash immediately using a credit card to finance the donation. The credit purpose will be able to pay off within a short period.
• After August 17, the effective tax year to qualified cash contributions in charities must be supported be receipted.
• The charitable donations of household items or clothing are not deductible. The property is used in good condition or better.
There are lots of choice to save the tax or cut the tax for any individual person who are working in a company. One of the ways to reduce tax is to by salary restricting, a person is doing many expensed owing to their job such as wearing a uniform for the sake of a job, travelling expenses for the office, buying newspaper to get a job. These are all the forced expenses and employer should pay for these things. Allowances, which allows to save tax are conveyance, driver, medical treatment, uniform, telephone & mobile, office entertainment and personality development. Next one it to save tax in payment of rent, in which people go to another city because of a job and paying rental amount. These expenses must be deducted from taxable income and employers have to provide some part of the remuneration as HRA (House Rent Allowance). This should subtract from the gross income of the employee and it will help to save tax.
1. Initial repairs: The common mistake is a capital investment as an immediate deduction. Repair to rectify the damage, defects can exist a property purchase are considered in nature, but not deductible and make suitable property for renting.
2. Prepay interest: Expecting the lower income in the next year, then advance rental property on before end year and reduce high income in this year.
3. Depreciation schedule: After 18 July 1985, property will organize a depreciation schedule from a quantity surveyor and each year can able to recoup the fee in tax return.
4. Travel to see your property: The purpose of many trips is genuinely inspect the property.
5. PAYG withholding variation: Over the last 12 months can struggle and negative gearing with cash flow. The mini tax return called PAYG withholding variation and each pay packet has less tax.
6. Foreign investment property: The ATO can disclose any income that receives on worldwide income tax as an Australian tax resident. These properties called negative gearing and deduct the property like interest, repairs, insurance.
7. Keep your receipts: The ATO make contact with taxpayers with rental property and increase an audit activity. The ATO motto is no receipt = no deduction.
8. Minimize capital gains tax (CGT): To sell the property and gain a capital or exchange contract to defer tax for another year. Investment property is more than 12 months can reduce half CGT.
Every people want to avoid the tax, but it is not an easy thing to do it. The least thing to do is to decrease the tax bill with the help of available allowances and reliefs. There is a difference between tax avoidance and tax planning. Tax planning said to be a legal process in which people can decrease the tax liability with the help of available tax reliefs. Tax avoidance means an illegal reduction on tax bill by modifying the figures and not disclosing the income. This will lead to severe penalties and cheated person will be criminally prosecuted. The tax planning concept is simple, but should not be fooled. Tax planning is better and complex left to the experienced and experts. If people receive more than some amount they must pay the tax under the government rule. Some special rules are applied for civil partners and married couples in terms of taxes in which they save tax.
In Australia, this year before you hurry to the shops on a spending spree or make a spur of the moment purchase. And also, you could consider a less smarter ways to take this year’s tax refund and bring it to work for you. According to ASIC, a person who retires at 65 with a modest lifestyle, they will need $300,000 in today’s money to retire. Those who want a ‘comfortable’ lifestyle will need at least $544,000 to retire. These are the super contribution top-up by that government. And also, a better deduction on next year’s return for buy work related equipment items and that cost should be over $300. The number of Australian are interested in investing, but they didn’t know how to start or can’t commit huge amounts of money for buying shares. So, try a micro-investment is an interesting option. Then, save your tax refund in a term deposit for your children. Using your tax refund to lower your credit card debt or pay it off. And then, put your tax refund into a mortgage offset account.
1. Think before opting for an EPF
When an employee provident fund has to pay about 60% tax on the portion of the amount and free tax will be rest of 40%. EPF is compulsory in which similar to a new pension scheme.
2. Your builder has delayed and don’t worry for tax exemption
In most of the home buyer make payments to the builder, but not to get possession within a three year period. They entitled to get tax deduction only Rs.30,000 and the finance minister has raised to limit up to 5 years. The government has realized more than 80% housing projects are delayed and the buyer cannot able to avail the tax exemption on a home loan interest.
3. The new buyer gets extra tax benefit
You borrow Rs. 35 lakh to residential property value is below Rs. 50 lakh and to get extra tax exemption on a loan interest portion. The loan will be sanctioned and the additional benefit can exist the exemption of 2 lakh in a year.
1. To reduce income tax
The actual paying is taxable. For example, earn $75,000 pa and paying a tax around $17,000pa. Today, the tax rate has continued to work for 30 days equal to $510,000 and does not increase any wages. The course of appropriate strategy in individual circumstances can reduce the income tax includes salary, package, tax deduction by keeping good records and get the right structure before purchase assets and investment in vehicles, use of debt and income protection insurance.
2. Transition to retirement
The older worker is reducing their working hours and ease into retirement. The benefit of this strategy is greater than the age of 55. The strategy is broken into two parts. First, pension from superannuation can reduced by employment income. Second, superannuation fund is a top salary sacrifice to compensate for pension payments.
3. Reduce the capital gains tax (CGT)
CGT applies for profit as a sell an asset. The asset held in less than 12 months will 100% profit of paying tax. The asset held in more than 12 months gives a discount and pay tax only 50% of the profit.
1. Maximize tax deductions:
According to the ATO, taxpayers are labeled to claim deductions for some expenses directly related to gain an income. The Australian taxation Office has a long list of deductions, income protection insurance, travel costs, including dry cleaning costs, and self education expenses, with fact sheets for specific occupations.
2. Prepay expenses, delay income:
If you own an investment property, you could acknowledge getting minor repairs and maintenance work finished before the financial year end. Similarly, where possible try and hold off income until after June 30, to avoid the paying tax on it this year.
3. Claim tax offsets:
Tax offsets directly decrease the amount of tax payable on your taxable income. If you work in remote areas of Australia for at least half of the year or federal police or Australian defence force you can benefit from a specific offset.
4. Salary sacrifice:
Salary sacrifice is a popular method of reducing taxes, specifically, for medium to high income earners. You will need the ask your employer to divert a portion of your before tax pay as a contribution to superannuation.
Generally, the professional start the right time of the carrier phase in the future. The investment should have a long term is to start the save and investing for retirement. You can start as early in the power of compounding.
Take the advantage of tax savings other than investments. The contribution is to provident fund by self and employer, which required to cover a life insurance for self and family form in the major portion of 80C.
The non – investment tax savings will play a major role in tax planning. The repayment of an existing home loan, self contribution and employer to PF, life insurance, Children tuition fees, more than account of 1 lakh under the section of 80C. The interest repayment of home loan under section 24B and health insurance premium for the section 80D.
The peak earning phase of the professional could try to pay an existing debt and channelize income towards saving for retirement.
After the retirement, the capital protection should be the motto of the investments in the debt. Retired employees were looking for a timely pay out can consider in senior citizen schemes.
• The maximum limit will allow under the section 80C of Rs. 1.50 lakh across the investment ranging from PPF, provident fund, fixed deposits, infrastructure bonds, NSC, insurance / pension plans, equity linked savings scheme etc. The tuition fees also include the repayment of principal on housing plan.
• The interest component of the home loan has been a separate limit of Rs. 2 lakh.
• Medical premium is the maximum up to Rs. 15,000 in which qualify for the deduction with additional Rs. 15,000 for parents. The additional deduction of Rs. 20,000 could be availed in case of senior citizen. To claim a separate deduction for medical refunds of your parents.
• A person has spent in the maintenance should be dependant persons with disability and avail the deductions act under section 80DD.
• The education loan with an individual paying interest can obtain the interest payment certificate under section 80E.
• Suffer from not less than 40% of disability is eligible for the deduction can extend to Rs. 50,000 and in case of severe disability of Rs. 1,00,000 under the section of 80U.
LAFHA can take various forms:
• An allowance the payment to you by your employer.
• Direct provision of a benefit from your employer.
• Compensation of expenses which you incur by your employer.
LAFHA’s intended to compensate you for expenses acquired whilst you are working away on Secondment. Living away from home allowance are payable in situations where you have carried on to live in your home, but the requirement to change apartment in order to work temporarily in another area at your employers bequest. A LAFHA paid to your income tax free and should not be included as measurable income on your tax return. LAFHA are often confused with travel allowances. The travel allowances are paid to employees who are travelling on business, but not living away from the house. Mainly, an employee travelling for business for less than 21 Days will receive the travel allowance, not a LAFHA. You can receive a LAFHA who also live away with you, including your wife and your children.
Keeping records of Expenses:
You must keep records of your expenses and will need to give your employe either:
• A declaration setting out information about the expense.
• Documentary evidence of the expense such as credit card, receipts.
When completing a tax return can have a choice between the standard tax deduction method in the determination of the taxable income. The standard dollar amount was set by the government to claim without accounting expenses that make a taxpayer in allowable deductions. You like less pay tax or large refund can get used this method. This method requires can support in the form of receipts and other documents to demonstrate the amount were actually spent. They qualified an individual retirement arrangement for tax savings in the current year, investment can earn from year to year will grow tax free and provide a retirement income. Some of the other tax savings are given below:
• 529 college saving plans: These plans are funded by tax dollars, qualify withdrawal are tax free can choose a prepaid education saving plan or tuition plans.
• Health coverage savings plan: These include saving account, medical saving account and flexible spending arrangement. The combination of both contribution and withdrawals are qualified by free tax.
• Dependent care savings accounts: Flexible spending arrangement is similar to an FSA, but focus on help paying for the child’s expenses.
• Take a full advantage of a company match
The employer offers a matching contribution with addition to receiving company match. Totally, the added potential benefits of tax deferred growth and compounding return.
• Contribute the maximum to workplace savings plan
You will need to retire cannot enough to generate a savings in which hundreds of thousands of dollars or even basic expenses.
• Pay down high-interest debt
You are paying more than 10% can consider extra savings to pay down the balance. The multiple accounts should be working with high interest rate and continue to minimum payments on debts. When the debt is paid off is putting an extra money towards pay off with the next highest interest rate.
• Remember other savings goals
The savings your other goals like college and graduate school for yourself. The best save for a college goal in which tax advantage account was designed to pay a qualified higher education expenses. To make easy on savings goal using direct deposit from paycheck to choose savings like vehicles, workplace plan, HAS, IRA or taxable accounts.
Individual investment usually starts with tax planning and once can utilize the tax saving investments to achieve financial goals. For example, children’s plan will also give tax benefit and if a person’s income increases, it is very wise to invest the amount in saving investment of tax in order to achieve goals. A person has to check the payment available in the company to utilize the maximum advantage. Normal expenses will also help to save tax, for example, meal vouchers, reimbursements and company car. Salaried employees who are staying in an apartment on the rental basis can able to claim exemption under the act of HRA house rent allowance. Some of the reimbursements and exemptions are house rent allowance should be minimum of actual HRA, rent paid should be basic of 10% and basic metros of 50% & basic non metros of 40%.
The deduction up to Rs.1 lakh under the section of 80C, 80CCC and 80CCD. The 305 tax brackets can save by investing in the approved tax saving instruments.
Employee Provident Fund (EPF): The 12% of basic salary pay, dearness allowance and retention allowance towards EPF.
Public Provident Fund (PPF): They can invest and claim an income tax deduction will contribute to the Hindu undivided family. Also, invest the name of spouse and children is available for contribution up to Rs. 1 lakh, which offer 8.7% annual interest.
Senior Citizen savings Scheme (SCSS): Above 60 years can invest in SCSS. The five year maturity period can extend by another three years. Only the deposit amount can multiply Rs. 1000, but not more than Rs. 15 lakh will offer 9.2% annual interest.
National Savings Certificate (NSC): They can invest in 5 or 10 years in which the NSC can offer 8.5% per annum, while 10 years are paying for 8.8%. The interest is taxed and no restriction amount can be invested through tax deduction.
Bank, post-office deposits: Investment in five years can be eligible for tax deduction and earned tax is taxable
You have worked hard can save for the future . To find the financial future in which understand your life will go beyond a spreadsheet. The approach of an Ameriprise advisor can be used for confident retirement to work with the help of realizing your personal and financial goals. To help with live brilliantly for both today and tomorrow. The important to find the approximately 10,000 advisors and choose to ideal for you. To start with a few candidates, check the backgrounds, credential and experience. To talk on the phone or meet with a person. They will search for an advisor in your area and focus to advisors that can help for unique needs and interest. You find one that feels good and contact to schedule for the first meeting. To ask the advisors a few questions before decides:
• Do you work with people like me?
• What are the services do you provide?
• How much to charge for your services?
• What makes a unique practice?
• If it’s important to you, ask about any interest, hobbies and association.
• How do connect with your clients.