If you have any feedback on how we can make our new website better please do contact us and we would like to hear from you.
Re:2014 Income Tax Returns
This is a general letter we forward and email to our clients each year to assist them with gathering their tax information for the year ahead.
To our Valued Client
Income Tax Returns
The end of the 2014 financial year is fast
approaching. In order to assist you with your information gathering, we have
put together a list of common information needed in order to more efficiently
prepare your income tax return. Please read through this list at your
convenience. This information relates to the period 1 July 2013 to 30 June 2014.
There may be instances where you do not need to lodge an income tax return,
however, as a general rule, if you have paid tax, or received a payment summary,
then you will.
·PAYG payment summaries and any ETP/termination
statements for year ended 30 June 2014, from employers, employment agencies,
labour hire arrangements, superannuation funds (together with UPP rebate
information) etc. Details of Employee Share Schemes.
·Copies of PAYG installments paid on annual or
quarterly Instalment Activity Statements/Business Activity Statements (if not
prepared through us, a copy of these statements is required for matching
·Centrelink Pensions, unemployment benefits, social
security, Taxable Parenting Payments, Paid Parental Leave Payments, Austudy or
HECS statements and Financial Supplement Loan statements (Note that Centrelink
does not provide these until after July if at all If you are unsure please
·Allowances, benefits, earnings, tips, directors fees
·Interest and dividend income, including imputation
credits and TFN withholding tax (Provide dividend payment slips, and bank
statements). Please note that even if these are not physically received and are
reinvested back into more shares, the dividend is still assessable in the hands
of the recipient.
·Trust distributions received (2014 annual tax
statements from Managed Funds etc. to be provided sometimes these will not be
available from the Managed Fund until September / October 2014).
·Where shares or units are sold/redeemed during the
year, details of the purchase dates and amounts (including copies of dividend
reinvestment statements) and sale dates and amounts, for capital gains tax
(CGT) calculation purposes (Copies of buy and sell contracts are needed).
·Other business income and expenses (as per cash book
kept, backup of MYOB or Quickbooks file, and invoices issued and receipts), plus
closing stock / inventory at cost, debtors (accounts receivable) and creditors (accounts payable) as at 30 June
2014, loan and bank statements, and prepaid expenses if the relevant service is
to be provided over more than a year. Copies of BAS statements (if issued) are
also required to be provided for matching purposes.
·Rental income and expenses for all commercial, and
residential rental properties (Agent Statements/Tax Invoices/Loan Statements,
Quantity Surveyors Report, Rates, Insurances, Repairs, Capital Improvements
·Income from foreign investments, overseas salary or
overseas pensions. Note all overseas
income earned is required to be declared in your return for the year ended
30 June 2014.
Deductions(Note: receipts and tax invoices are required
to be cited for all claims)
Due to the increase in
audit activity this year, and to ensure your maximum claims are being made
accurately and correctly, please include your receipts and logs for claims
·Work-related expenses such as union fees, subscriptions,
work related travel expenses, self-education costs, uniform costs and
protective clothing and footwear etc.Note: These costs should be
GST-inclusive. (Even if you are unsure of the tax deduction, please include the
invoice, and we can determine its deductibility)
·Motor vehicle expenses (total costs for the
financial year for fuel, registration, insurances, repairs, etc from 1/7/13
30/6/14 per receipts), business kilometres travelled, logbook details (Note: Logbooks must be renewed
every five years or if a new car is purchased, and reviewed annually to
ensure the business percentage use is accurate). If a new vehicle is purchased,
the dealers purchase contract together with the finance documents if
·Other deductions such as interest on investment
loans, bank charges, postage, telephone and computer related claims incurred in
earning income from activities as described above, together with the logs kept
to substantiate those claims.
·Tax-deductible donations, and tax agent fees. Income
Protection Insurance statements.
from Medicare, private health funds and other receipts for pharmaceutical,
dental, hospital, optical expenses etc., where the total of such expenses
exceeds $2,120 after reimbursement from Medicare/private health funds.
·However, on 14
May 2013, the Labour government announced in the 201314 Budget that it will
phase out the net medical expenses tax offset. From 1 July 2013, those
taxpayers who received the offset in their 201213 income tax assessment will
continue to be eligible for the offset for the 201314 income year if they have
eligible out-of-pocket medical expenses above the relevant claim threshold.
Similarly, those who receive the tax offset in their 201314 income tax
assessment will continue to be eligible for the offset in 201415.
mentioned above will not apply to all taxpayers the offset will continue to
be available for taxpayers with out-of-pocket medical expenses relating to
disability aids, attendant care or aged care expenses until 1 July 2019
·Superannuation contributions made during the year on
behalf of your spouse, together with your spouses income details.
·If you do not normally lodge an income tax return
but received franked dividends or trust distributions, you are now eligible to
claim back from the Australian Taxation Office any excess imputation credits.
·If your spouse does not work and you are not
receiving Centrelink Benefitsfor your
family you may be entitled to a spouse rebate. Your spouse must have been born
before 1/7/52, and earn less than $9974.00.If your spouse was born on or
after 1 July 1952, you can no longer claim a dependent spouse tax offset for
Please note that the Australian Taxation Office is increasing
its audit activity with the audits of ax returns of individuals on a regular
basis. As your return will be assessed on the information contained therein,
care should be taken to ensure that details of income and deductions supplied
are correct. Substantial penalties may be imposed where errors or omissions
occur. Note that it is the responsibility of the taxpayer to ensure the
information in the return is correct. Where any errors or omissions are
detected, please inform us immediately so that we can amend the return for you.
For the 2013/2014 financial year, the ATO has
increased its auditing capacity, looking at all occupations and the benchmarks
for these occupations, and looking at deductions claimed. If you are outside of
the ATO benchmarks, you will be looked at. Please ensure all receipts are kept
for all claims and that all claims are able to be substantiated. The ATO is specifically looking at under
declared / cash earned income for all taxpayers and also concentrating on
claims made and the relevance to your employment and deductibility.
Deductions claimed for income tax returns are
required to be substantiated by receipts or other records. Without such
records, claims will be disallowed and penalties may also be imposed.
Similarly, appropriate records must also be
maintained for capital gains tax (CGT) purposes, in respect of assets (shares,
property etc) acquired after 19 September 1985. If such records are not
currently available, we recommend that you contact us to discuss your options
as, on the sale of an asset, it can be a time-consuming and costly process to
obtain the required information. Please note that we are also able to provide
an investment register service to help in eliminating any future problems.
To minimise the time involved (and cost
to you), we ask that you review the information above that applies to your
situation, and include all relevant details when you send your information in
to us. Please include logs of your phone and internet usage (if applicable) and
a summary of your work related expenses along with the receipts to substantiate
All information is required to be kept by
the taxpayer for 5 years (business) and 3 years (individual).
From the 2014 year, we will be emailing a full copy
of the return to you. There will be NO charge for this
service. Accordingly. as we provide a full copy of the return and any
related information to you, we do not hold physical copies of these on
Any additional paper copies of these
returns required will incur a fee of $55.00 for retrieval and
copying/faxing. Please ensure you keep copies of these returns in a safe place.
We have a tax information envelope
this year to assist in the retention of this information for you. Please call
into the office to collect your free tax envelope.
As an existing client - that our fee for the preparation of a basic salary
and wage income tax return (drop off no appointment) will remain
the same at $99.00 for an up front payment at drop off. This fee has
remained the same for the past 7 years.
Normally, these returns are able to be
prepared within a few days for your convenience.
We do ask that you fill out our client
information form in order to provide your contact details (phone, address, and
email). Please do not be offended if we ask for this information again. As we
are going paperless, we do need to check all our contact details and email
addresses to ensure we are able to get hold of you.
Payment for the processing and lodgment of your return is required immediately upon completion of the return and
presentation of your invoice. Without
full payment, lodgment cannot be assured. Once paid for in full, we can
arrange for the ATO to deposit your refund directly into your bank account, so
please provide us with your banking details.
If an appointment is required to
prepare your salary and wage income tax return, a base fee of $385.00
will apply. Please call us for our schedule of fees for rental properties,
businesses, and other entities. Whilst we do have a fee structure, these fees
may vary depending on the amount of work involved and the time taken to prepare
Should your contact details
change at all during the financial year, please ensure you contact us to
provide us with these changes addresses and phone numbers. At times the ATO forwards information to us which we are required
to forward to the taxpayer. However, without the correct contact details, we
are unable to forward these to you.
Should you have any queries regarding these matters,
please do not hesitate to contact us. We trust the enclosed information has
assisted you in the gathering of your 2014 tax information. Looking forward to
assisting you in 2014.