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.
- 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.
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.
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.
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.
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.