FAQ’s & Answers More Importantly!

Below are just a few of the questions we are frequently asked, and a summary response. As with all things, your unique situation may differ so please don’t hesitate to contact one of our experienced team today for a more personal answer.

Different investments have their own advantages and disadvantages and what is right for you depends upon your investment goals and risk profile. You need to discuss this question with your licensed financial adviser. If you don’t have a financial adviser or are looking for a second opinion, please contact the TickTax office.

Every business is different so it can be difficult to identify deductions without knowing a little more about your business but we can safely say that the  following expenses can usually be claimed as a deduction if you’re operating a business:

  • Accounting Fees
  • Advertising
  • Bank Fees
  • Depreciation of Assets
  • Dues and Subscriptions
  • Insurance (Business)
  • Internet Fees
  • Materials
  • Motor Vehicle Expenses (Logbook or Cents Per KM Methods)
  • Office Expenses
  • Postage / Shipping
  • Rent (Business Premise)
  • Repairs & Maintenance
  • Subcontractor Fees
  • Telephone Fees
  • Tools
  • Wages

Please be aware that some of these expenses may not relate to your business or may not be claimed at 100% of the expense.

If you would like further information on what you can claim in your business please feel free to call the Tick Tax Office to book in an appointment and see one of our consultants.

An investment property is a usually owned by an individual but rented out to another individual. Investment properties can sometimes be negatively geared which can have a positive affect on a tax return, sometimes saving the individual thousands of dollars in tax paid.

Investment property expenses which can be claimed as a deduction include but are not limited to:

  • Advertising for Tenants
  • Body Corporate Fees
  • Borrowing Expenses
  • Cleaning
  • Council Rates
  • Depreciation on Plant
  • Emergency Services Levy
  • Gardening
  • Insurance
  • Interest on Loans
  • Land Tax
  • Pest Control
  • Property Agent Fees
  • Repairs & Maintenance
  • Special Building Write-off
  • Stationery
  • Telephone
  • Travel
  • Water Charges

Please be aware that some of these expenses may not relate to your business or may not be claimed at 100% of the expense.

If you would like further information on what you can claim in your business please feel free to call the Tick Tax Office to book in an appointment and see one of our consultants.

Yes you can, the Tax Office will let you use the cents-per-kilometre method to claim for work related vehicle costs, this method is limited to 5,000 km’s based on the number of km’s travelled for work during the year. However, keeping a logbook more often than not results in a larger deduction than the cents per km method hence we always advise on keeping a logbook for 12 weeks if you use your car for work purposes.  (Note: you can generally claim most or all expenses for larger trucks, vans and specially modified business vehicles.)
100% – provided that the gifts are made to a “deductible gift recipient”, namely an organisation that the Tax Office has pre-approved to be able to receive donations and gifts which can be then be claimed by the person giving the donation or gift. To claim a tax deduction for a gift, the payment must be truly a gift of $2 or more (purchase of raffle or art union tickets are not a gift nor are membership fees, fundraising dinners etc). For a list of tax deductible gift recipients please visit Tax Deductible Gift Recipients – ATO

Provided that you have made a gain, you will probably have to pay tax. If you have held the shares or property for less than 12 months, the whole of the capital gain is taxed as part of your foreseeable income. If you have held them for more than 12 months contract-to-contract date, you will pay capital gains tax but in general only half the gain is counted into your taxable income. If you have lived in your rental property for a period, there may be a further reduction – and if you happened to purchase the shares or rental property before 20 September 1985 you won’t pay at all!

Most borrowers are able to claim loan interest and other costs of investment as tax deductions – depending on individual circumstances. The investment must be one that is reasonably expected to produce income now or in the future. Examples might be a margin loan or an equity drawdown to purchase shares, a mortgage loan to buy a rental property or a bank loan to acquire or expand a business. You wouldn’t expect to be able to claim the interest on a holiday loan but you might be able to claim a portion of your car loan if you normally claim motor vehicle expenses.

A Self-Managed Super Fund is established for the sole purpose of providing retirement benefits for the members or their dependents. It is a special purpose trust that is run by the Trustees who are responsible for all investment decisions for the fund and complying with the super and tax laws. A SMSF can have up to a maximum of four members and can invest in a variety of investments that are in accordance with the SIS Act (including residential investment property via a limited recourse borrowing arrangement).

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 should keep receipts to substantiate the expense. We are happy to advise you on appropriate record keeping that will enable you to maximise your deductions.

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 note on the credit card slip indicating the expense. More and More taxpayers are using 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 the amount.

The ATO have also developed an app (MyDeductions) to store photos of all your receipts which are then also passed on to your registered tax agent at year end. It is also wise to back up your receipts by forwarding them via email to yourself or your accountant at Tick Tax.

For more information on the MyDeductions app please visit MyDeductions App – ATO

A deduction will only be allowed if you have actually incurred a work related expense and have the necessary documentation. Travel to and from your job is generally not claimable unless, for example, you are carrying heavy equipment. Some awards allow for a payment of an allowance even though an expense is not necessarily incurred by the employee.