We are looking forward to providing our high quality services to you again in the coming 2022 tax return season.
Our Chatswood office is Covid safe for face -to- face meetings.
However it is highly encourage that we use email or other method to complete our jobs.
Our office is open Monday – Wednesday 10am – 5pm. Appointment necessary.
The last Saturday of the month July, August, Sept. and Oct. Appointment only.
If you need any other time please contact our accountant to make an appointment:
Lily Bao: 0407 017708
Emma Sun: 0402 875574
Our office line: 02 9410 3661
Office email: email@example.com
Office address: 23A Oscar St. Chatswood (3 hours free parking in Aldi across road).
Resident Tax Rates 2021–22
*These tables do not include the 2% Medicare levy.
|Taxable income||Tax on this income|
|$0 – $18,200||Nil|
|$18,201 – $45,000||19 c for each $1 over $18,200|
|$45,001 – $120,000||$5,092 + 32.5c for each $1 over $45,000|
|$120,001- $180,000||$29,467 + 37c for each $1 over $120,000|
|$180,001 +||$51,667 + 45c for each $1 over $180,000|
Four priorities for the ATO this tax time
The ATO will be focusing on:
- Work-related expenses
- Rental property income and deductions, and
- Capital gains from crypto assets, property, and shares
3 Golden Rules When Claiming Deductions:
- You spent the money
- Apportion the expense if it is not 100% for income producing purpose; and
- Must have a record to prove it
Avoid double dipping – work from home due to Covid-19
- Short cut method is all-inclusive ($0.80 p.h). You cannot claim any other expenses such as phone, internet, etc
- Traditional method: you must keep all receipts, apportion the % of usage, electricity cost is $0.52 p.h.
No, no, no claim for these if work from home:
- Zoom – ready home décor. No
- Tea/Coffee/biscuits, no. Even though in your workplace your employer may provide them.
- No handbag claim, unless you are required to take work home, and this bag is 100% dedicated for taking work only.
- No exercise equipment can be claimed.
- If your total super balance is under $500,000, you are entitled to contribute more super before 30th June 2022, so as to reduce your taxable income. For 2022 cap – $27,500 concessional contribution including your employer contribution.
- If you are not sure how much you can catch up after using up $27,500 cap, please contact your accountant to find out.
Rental Property Investors
- Please provide real estate agent’s annual statement, bank loan statement, and a list of any expenses you paid by yourself.
- For newly purchased properties, please provide the 1st page of the contract, the settlement statement from your solicitor. And a list of expenses not included in the above documents.
- If you would like to claim depreciation of the investment property, you need to hire an quantity surveyor to do a ATO accepted report.
- If you change the use of your investment property, say move in or move out, you may need to do a property valuation report by a licensed valuer. This is for capital gain tax reporting when the property is sold.
- Do you know – you can claim 100% interest expenses for purchasing the rental property. In many cases investors use their home or other assets to pay the first deposit 20% and stamp duty. Please provide the loan interest documents to claim this deduction. Interest deduction is not limited by what property is under security.
Small Businesses and Employers
*Changes to the company tax rate
|Income year||Aggregated turnover threshold||Tax rate for base rate entities under the threshold||Tax rate for all other companies|
|2021–22 and future years||$50m||25.0%||30.0%|
Instant assets write off in 2022
You may be eligible for temporary full expensing if you are one of the following:
- a business with an aggregated turnover of less than $5 billion
- a corporate tax entity that meets the alternative income test
- please note motor vehicle cap for 2022: $60,733 Including GST.
Single touch payroll
- Compulsory for all employers.
Company Director ID
- By November 2022 all existing company directors are required to apply for a director ID via this link:https://www.abrs.gov.au/director-identification-number
- Anyone wants to set up a new company and being a company director, he/she must apply for the Director ID first.
Companies – the government Covid help “non-taxable” income
If it is paid to individuals, it is treated as “unfranked dividends” in individual’s tax return. However, if the company borrowed money from the owner, the company may use this fund to pay back “owner’s loan”. This income should stay in company accounts. Please discuss with your accountant before paying it out of the company account.
- From 1 July 2022, SG super will increase to 10.5% for all gross wages.
- Concessional Super Contributions Cap –the cap will be $27,500 from 1 July 2021
- Non-Concessional Super Contributions Cap – the cap for 2021/22 will be $110,000.
SELF MANAGED SUPER FUND – SMSF
- Record Keeping and original documents As SMSF requires audit by ATO, trustees please provide ALL source documents, and marking ALL transactions. For share trading or crypto investment, please keep your detailed trading record as ATO is looking at this area closely and may require all your record. Please strictly document each bank deposit and payment.
- Trustee Capacity If due to health reason or leaving Australia, or any other reason a SMSF trustee may lose his/her trustee capacity. You must contact your accountant instantly to work out who will be appointed as the new trustee.
- SMSF and small APRA fund membership increase From 1 July 2021, the maximum number of members for self-managed superannuation funds (SMSF) and small Australian Prudential Regulation Authority (APRA) funds increased from four to six.
There are many more topics to talk about. Please do not hesitate to contact us if you have any queries regarding 2022 tax time.
We look forward to talking to you soon.!
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