View Full Version : For Australians
GoldCoastGirl
03-13-2006, 09:11 AM
babes- that was excellent :) :) thank you so much for that. now i totally understand! now when i go to an accountant i wont be totally lost on what he or she is trying to tell me.
trust or company definatly sound like a go ahead :)
Rach, please go over earlier posts I have made about company and company/trust structures within this thread. In the end, my accountant recommended that I did not require any form or sort of structure as I paid very little tax after all my deductions.
BTW, it is income - duductions = assessable income (income that will be taxed)
EDIT TO ADD: I found a really kewl website: http://www.canterburyservices.com.au (http://www.canterburyservices.com.au/index.html) if anyone want to check it out
GoldCoastGirl
04-02-2006, 12:36 AM
From The Trident (Newsletter) Vol 9 - Issue 1 - February 2006
* You receive The Trident (Newsletter) after you have purchased one of the many books (hard copy and/or eBook) available from the Trident Press website :) http://www.tridentpress.com.au
Page 5
The Trailing Stop Strategy
In stocks, you must have a strategy that makes you methodically cut your losses and let your winners ride. If you follow this rule, you have the best chance of outperfoming the markets. If you don't your retirement and future is in trouble.
The plan is very simple. We ride our stocks as high as we can, but if they head for a crash, we have our exti stragegy in place to protect us from dammage. Though we have many levels of defence and many reasons we could sell a stock, if our reasons don't appear before the carash, the Trailing Sop Strategy is our last-ditch measure to save our hard-earned dollars. And, as you'll see, it works well.
For exakple, let's say the shares of two companies trade on the ASX. They both start trading at $10 a share. At the end of the first year, the profitable company "A" is trading for $12 a share, and the unprofiatble company "X" is trading for $8 a share. A the end of the second year, company A is trading at $14 while company X is trading at $6 a share. Which shares would you rather own?
Even though you know you should bjy the winning concept in this business example, most investors don't do so in their stock investments. They keep throwing good money after bad hoping for a turnaround. They buty the "cheap" stock... the loser.
The main element to trailing stop strategy is a 25% rule. We will sell positions at 25% off their highs. For example, if we buy a stock at $50, and it rised to $100, when do we sell it? When it falls back to $75, or 25% off our high.
So, with the Trailing Stop Strategy, when would we have gotten out of Company X? you already know the answer. Remember, the shares started at $10 and fell immediately. Instead of waiting around until they fell to $6 as the business faltered, using your 25% trailing stop, you would have sold out at $7.50.
And think of it this way, if the shares fall to $8, you're only asking for a 25% gain to get back to where they started. But if the shares fell to $5, you'ar asking for a dog of a stock to rise 100%. This only happens once in a blue moon, not good odds! You'll also see how bad things can be if you don't use it. It takes discipline to employ this strategy... but if you don't use this strategy, you'll never, ever be a successful stock investor.
THANK YOU LANCE SPICER !!!
From The Trident (Newsletter) Vol 9 - Issue 1 - February 2006
* You receive The Trident (Newsletter) after you have purchased one of the many books (hard copy and/or eBook) available from the Trident Press website :) http://www.tridentpress.com.au
mermaidnz
04-25-2006, 06:06 AM
anyone know of an awesome accountant in SE Queensland area who would find all the loopholes in tax stuffs? please PM me!! tax time is near and im new at the tax thing here!
mermaidnz
05-09-2006, 10:20 PM
someone, anyone?.....
Babes Promotions
05-09-2006, 11:09 PM
I would say pretty much any accountant will be OK. Just steer clear of the likes of ITP, H&R Block etc. Every year we have girls go to the likes of these companies and come back saying they have a huge tax bill. We send them to someone who knows what they are talking about and they come back with a refund.
It will cost you more to see a proper accountant but the advantages far outweigh the expense.
mermaidnz
05-09-2006, 11:13 PM
cool. thanks for that :) i was considering just going to h&r block.good thing i didnt! lol
i guess ill just flick thru the phone book or something around here?
Darcy Foxx
05-11-2006, 04:56 AM
Hmmm so tax time is coming up, and this is my first year working as a contractor on an ABN. I've got some money put aside for tax which I know I will have to pay out, but I'm a little stressed, because this is the first time I've had to pay tax, and I've got absolutely NO idea how much I'm going to have to pay out.
I've got a shitload of deductions, I've kept my receipts for everything over the last year.
Not including my deductions, is there any way of finding out an approximate amount of how much tax I would have to pay from what I earned? Like, say I earned $21k on the books this year, is it possible to work out how much tax I would pay on that amount?
Basically I just want to know the absolute maximum amount of tax that I will have to pay out, so I can make sure I have that there for my own piece of mind.
I'm totally clueless about this tax stuff.
Darcy Foxx
05-11-2006, 05:05 AM
oooh never mind, the ATO website has an income tax calculator!
Wonderful. Disregard my earlier question, this has solved all my problems.
If anyone else is interested in it
GoldCoastGirl
06-05-2006, 03:21 AM
Okay, when I get back home I will inquire with my accountant about possible adult entertainment business/industry experienced and/or "friendly" accountants. BTW, thanks to the internet you do not need an accountant that is in the same state or area as you anymore..... plus I pay accountant runs around $450 per hour or something along those lines... what I'm trying to say is that be prepared to pay if you want the best. Thanks to her in the years I've been legit I have only ever received a refund. The only time I owe money is GST/BAS time.
Luke34
06-05-2006, 03:25 AM
Couple of other ones to remember are to pay yourself super. In addition to lodging your income tax, you also you need to lodge a tax return for the business each year with the ATO. I learnt this the hard way the first year and got a fine of $660 for not lodging a return.
You also need to lodge the appropriate documents with ASIC each year.
Hope this helps
Luke
GoldCoastGirl
06-11-2006, 11:18 PM
Couple of other ones to remember are to pay yourself super. In addition to lodging your income tax, you also you need to lodge a tax return for the business each year with the ATO. I learnt this the hard way the first year and got a fine of $660 for not lodging a return.
You also need to lodge the appropriate documents with ASIC each year.
Hope this helps
Luke
Just to make deadly clear that what Luke is speaking about is in regards to being an employee (you as the director of the company are an employee of the company) of a company business structure. If you are self-employed, it is totally up to you to pay yourself super or not (tho' I personally wouldn't bother if you are under the age of 40 to do so and instead put that money to better use in investments that increase your income as well as assets).
Luke34
06-20-2006, 06:28 AM
Tend to be a bit wary to disagree with you GCG but to the best of my knowledge superannuation guarantee is not up to you, it is compulsory. I think the figure was recently increased to 11%.
See attached from ATO website.
Employers must pay superannuation contributions on behalf of all their eligible employees. This compulsory contribution is called the superannuation guarantee.
The amount you have to pay is a percentage (known as the charge percentage) of each employee’s quarterly ‘earnings base’ (see ‘What is an employee’s earnings base’). The charge percentage is set out in the law and is currently 9%. To work out the amount you need to contribute to the superannuation fund for each employee, you simply multiply the employee’s earnings base for the relevant quarter by 9%.
GoldCoastGirl
06-20-2006, 07:49 AM
All dancers are self-employed unless they operate their business via a company structure... and then and only then are they employees. Super is only payable if you operate under a company or similiar structure not if you are self-employed... then income is taxed as personal income... and everything else is up to you to do for yourself (medical, super, etc).
Dancers do not operate under employer - employee structures generally speaking (thus the reason we all have ABNs not ACNs). This is why I disagree with you in re: super. If you re-read what you posted above in re: super you'll notice two words: "employer" and "employee" which are totally irrelevant to a self-employed person.
Besides, I've been legit for two financial years now ...thus that is two tax returns with this financial year being my third... and I havn't been pulled up in re: super by my tax accountant (everything she does goes through a quality control system/process by her superiors to make sure nothing is in error when submitted to the ATO or even information submitted to me) or the ATO.
Except GST... it's compulsory if the turnover (before tax income) is $50,000 or more. Voluntary if the income is lower than that...
Luke34
06-21-2006, 12:37 AM
You seem to have it under control. I was not aware of the ABN without ACN option. I operate under ACNs. Just thought it was worth checking.
Cheers
Luke
Babes Promotions
06-21-2006, 02:53 AM
[QUOTE=Luke34]to the best of my knowledge superannuation guarantee is not up to you, it is compulsory. I think the figure was recently increased to 11%. /QUOTE]
Super is still 9%. In the past it has not been tax deductable for self employed folk (unless you are an employee of your own company) to pay super. This will change next financial year and with the changes in the way super is taxed it now makes it a very viable and appealing option to invest for your future.
I would also recommend a SMSF (self managed super fund), easy to set up and easy to run and you make the decisions about where you invest your money. Probably not worth it if you have less than $20K in super though.
AussieLani
06-25-2006, 05:02 AM
shit i got one of those letters and only worked for a couple of months but had no idea about the recipts or what not.
mmmm what to do?
GoldCoastGirl
06-26-2006, 03:12 AM
shit i got one of those letters and only worked for a couple of months but had no idea about the recipts or what not.
mmmm what to do?
Well, if you got a letter from the ATO, they have you on file as having earnt cash income (or self-employed income) even if it was only for a few months. You still have to declare the money you earnt and be prepared to pay tax on it since you didn't keep any receipts so as you can claim the allowable deductions in re: being an entertainer (under personal and other services industry).
You won't be audit-ed per say yet they do have you on file for having earnt income so hopefully you have learnt your lesson... and pass on that lesson to other dancers please. ;D
keira
08-14-2006, 01:02 AM
not to change the subject, but has anybody been following this new US Work Visa program for Australians only ?
http://h1base.com/page.asp?id=352
We have something similar here and I think Europe does also, we call it sponsorship where an employer pays around $2000 to bring you out under contract to the country to work but first they have to prove none of the locals are available do the job (or lower the wages so much that no local will take the job). They have been doing it for years to get cheap skilled overseas labour. Hasn't gone over too well with the unions.
GoldCoastGirl
10-16-2006, 12:45 AM
Details of an affordable open minded accountant (for adult/sex industry professionals), is Amanda Johnson at KA Solutions. Her office number is: 5585 2102 and her email is:
[email protected]
This is a referral from my accountant. No you can't have my accountant :laughing: She is all mine!! :-P My accountant works within PKF Solutions in Southport - just give them a bell to see if you qualify (as you must have a certain net worth to qualify) as a client.
These days you don't actually have to have an accountant in the same city as yourself so this recommendation is great for everyone across Australia. ;D
GoldCoastGirl
10-31-2006, 04:43 PM
I've lodged my tax return online at 12:07am on November 01, 2006 (I didn't realise my stupid clock was running 10 mins late).
So that means I've officially missed the tax deadline. Am I going to be penalised?
Do you have an accountant? If not, I recommended one in the post above this post. Thanks to technology (phone, email) you do not need an accountant that lives near you (handy tho not necessary). I would highly recommend that you do your tax return through accountant from now on.
You can do your BAS (if you're registered for GST) or PAYG (if you aren't registered for GST and you just need to pay your taxes) easily over the Internet.
Register for the Australian Taxation Office Business Portal: https://bp.ato.gov.au/
This way you then have access to the ATO and you can ask them not just your accountant this question plus more in relation to tax and/or gst. Plus allow you to pay your BAS / PAYG over the internet and just be of great help/assistance in being in business for yourself.
You probably won't be penalised as you were only 10 minutes late HOWEVER in order to be a success in being in business for yourself you MUST remember to do your tax return sooner rather than later...........and do so thru your accountant as it gives you that extra 'layer' (as such) of protection in re: the ATO.
jaizaine
10-31-2006, 10:29 PM
GCG im really impressed that u have the initiative to set yourself up as a company. there are pros and cons of setting up a company which u have obviously investigated.
For any other aussies interested the ASIC website provides step by step info on how to set up a company:
http://www.asic.gov.au/asic/ASIC_INFOCO.NSF/print/Starting+a+company+or+business?opendocument
Im a final year law student and Im planning to specialise in company law so if u ever have any queries about it Im happy to answer (although I do not yet have my practising certificate so it is NOT expert advise).
I can also try to answer TAX questions but I did not do so well in TAX law its so dam hard - agree leave that one to accountants.
jaizaine
10-31-2006, 10:30 PM
one more question which is probably a bit naughty to ask - how many girls on SW (aussies and all the others) disclose all their earnings to the ATO (tax office)?
aussiepunkshocker
11-01-2006, 12:50 AM
^^^ I wouldnt advise that anyone answers that they dont, geezzz.
I think all the Aussies do tax here - anyone who doesnt is crazy if they are posting earnings details on here with enough tracable details for the tax department to find out who they are.
GoldCoastGirl
11-01-2006, 02:58 AM
I have no fear of the tax department as I disclose my earnings. Also, I am not going to incorporate as a company on advisement of my accountant. Why? With the changes to the tax system I would have to earn in the vincinity (sp?) of $70,000 per year ... and since I do not earn anywhere NEAR that much (I'm not registered for GST currently as I earnt under $50,000 turnover in the last financial year and I don't know if I will be having such turnover this financial year) it is cost prohibitive.
Granted, I know enough about incorporating and so forth to be smart with investments such as real estate investments. I personally won't invest in real estate without one (a company) as having that extra layer of protection against sue-happy tenants will protect me a little........ I could even form a trust.
Basically, I have all the information I ever require and need in re: protecting my assests and minimising tax legally.......... hence wealth creation.;D I take my financial literacy education quite seriously as I really do want to come out better at the end of this "career" ;)
Lysondra
11-14-2006, 07:42 PM
QUEEESSSTION!!!
I got a letter saying I had my TFN finally but my TFNUMBER has letters...
Do TFNs normally have letters?
What sucks is the last digits of it are LIE4U.... WTF???!
It just sounds so... well... scammy. o.O
Lysondra
11-16-2006, 06:41 PM
Okay, I got my ABN and it's all numbers...
... so why does my TFN say LIE4U at the end?
GoldCoastGirl
11-16-2006, 06:49 PM
My TFN has all numbers no letters the same as my ABN so I don't understand why yours does have letters.... might have something to do with not being a fully fledged citizen maybe? In the end, ask the tax department. Go to their website and send them an email or give them a call.
Personally, I think it is hella kewl to have those letters at the end... what if you had 4NE8 (fornicate) at the end ??? :D
Lysondra
11-16-2006, 06:54 PM
Hahaha... it would be funny... but the first digits (can I post it online) look dodgy with it! The whole fricken TFN looks dodgy (on the other hand, I totally have it remembered).
Lysondra
11-17-2006, 04:57 PM
Allllriiiight... I just got ANOTHER letter saying my TFN was something DIFFERENT. The other letter I got said my TFN was 199LIE4U.... wtf?
Now I have one with huuuuuge string of numbers.
Allllright.
GoldCoastGirl
11-18-2006, 04:55 PM
My TFN which I have had ever since I started working when I was 15 (it doesn't change as it is linked to you as an individual/person) comprises of 9 digits/numbers in total no letters. My ABN is comprised of 12 digits/numbers in total no letters. Once again, if you are confused about what your actual TFN is please do contact the ATO as, naturally, they would be of more help than me.
mermaidnz
01-22-2007, 11:54 PM
ohhhh i just found out boob jobs are no longer a tax deduction, and havent been for some time. might be old news to you guys, but ive only just found out :( guess i wont be upsizing in the future then.
jaizaine
02-06-2007, 08:54 PM
I have got my ABN now and lucky for me it allows you to backdate it so mine has been in operation since I started dancing.
Now I realise that in order to be deductible an express must be directly related to earning accessable income so my question is:
do cosmetics fall into this category. i have been keeping my receipts for make-up that i have purchased for work but i also use some of it for personal use.
im not sure about dancing but most people in most professions are unable to claim clothing as a deduction unless it's a specific uniform but with dancing is this different given that the bikinis, outfits and shoes are pretty much IMO only really able to be used for dancing?
thanks
Lysondra
02-06-2007, 08:59 PM
Cosmetics for dancers - yes. Waitresses - no. Account for only the % you use it, though. I use my make-up for work 90% of the time... so only 90% of it is deductible.
And yay for backdated ABNs... I did the same thing... :)
I even use my regular clothes for some shows so I can deduct them... but again, a %... but the shoes and shit... 100%.
jaizaine
02-06-2007, 09:03 PM
Oh thanks LM. I so should know this as I had to study tax law for uni but ah lets just say it was not one of my better subjects.
plus running own business as a dancer is very different from most other professions in regard to tax.
yeh now i just need to get a copy of MYOB and start working out incomings and outgoings. kind of exciting doing all this :)
GoldCoastGirl
02-06-2007, 09:47 PM
If you want to know how to set up a company account in MYOB for a dancer (cash based business) just tell me and I will try to walk you thru it otherwise it might cost you a pretty penny to get someone else (like it did me) to teach you when in fact it is really simple and easy to do!
Did you put yourself down in the Personal and Other Services category? Also put yourself down as ENTERTAINER
In re: cosmetics. If your make-up and cosmetics are purchased from places that supply theatrical make-up then you can deduct it. I'm even thinking MAC and higher-end make-up that make-up artists generally use are deductible.
Try to buy cheaper versions of your work make-up for everyday use so then you can claim your work make-up 100%.
Keep all receipts!
Clothing. If you have your clothing bought from someone that supplies clothing to strippers (costumer, adult shop, etc) then no problems. It is when you purchase it from 'normal' places that it can be rather hard to claim 100% even if you can proove it is purely for work.
That's why I keep my Bra n Things purchases sporadic because I can't get the full write-off of that purchase due to the store being an 'every day' store.
In the end, you need to get yourself an accountant.
Are you registered for GST? You only need to do so if you know you will be earning over $50,000 (before expenses) in the financial year (July 2006-June 2007).
Otherwise, just keep all your receipts and do an end of year tax return. After you do your first year's tax return you can then opt to pay your taxes (and GST if you are eligible) quarterly.
mermaidnz
02-06-2007, 10:01 PM
hmmm for my last tax deduction i managed to claim
hundreds of dollars worth of bras and things items- for shoots and club dancing. obviously all my costumes for show dancing, and all props, hundereds of dollars worth of mac makeup- for shoots and club dancing, stripper shoes, regular heels, regular clothes for shoots, even vibrators!!! for shows and shoots.
i keep every single reciept.... some things you may get knocked back on, but its better to try then not bother.
jaizaine
02-06-2007, 10:37 PM
Hey GCG thanks a lot. I will see about getting a copy of MYOB and then that would be great if u could explain how to use it.
I am not registered for GST as I dont expect to be earning $50K at this stage as I began dancing in November so perhaps next financial year if I start earning more.
I do buy my clothes and bikinis from a costume seller than comes into my work and stupid me did not get a receipt off her and I spent $250!! I will phone her and see if she can write me up one (fingers crossed).
I also use professional make-up so that's a bonus too YEAH!
Thanks a lot for all the info on here it's great to have Australian-specific information on here.
mermaidnz
02-07-2007, 04:44 AM
in Re :GST, how the fuck does that work?
so say i made $60k p.a and had to register for gst. what benifates does that give me? does that mean i have to pay an extra 12.5% tax or soemthing? *confused*
GoldCoastGirl
02-07-2007, 12:22 PM
No Jess. It just means you fill out a BAS (Business Activity Statement) every quarter (or do your BAS annually which is worse IMO) instead of just paying your tax installment every quarter. Your BAS is your GST as well as tax that you owe to the ATO.
It gives you no benefits as such except that you can at least claim back a little GST that you have been paying in re: business purchases etc as that does help lower the amount you owe the ATO or if you paid enough GST you may even warrant a GST refund!
Always go to the ATO website and/or your TAX accountant or ATO person in relation to specifics. Plus don't take my word for this as this is just my understanding of it all after I did have to pay GST one year (didn't have to do it previous year as I earnt way under 50k in total prior to deductions as it was a bad earnings year for me.... I'm bound to have to register again after this financial year tho').
GoldCoastGirl
02-07-2007, 04:43 PM
Straight from my accountant so this is true:
Credit Card
If the credit card is used for 100% business purposes and no purchases are
made on the card which are private in nature then the interest charges on
the card will be deductible. If some personal costs are charged to the
card we will need to apportion the interest costs between what is private
and what is personal.
HOW TO SET UP IN MYOB
You can record this in MYOB by creating a new account called credit card
under the liabilities section. You will need to enter all of your
transactions that enter the card through this account as you would with a
bank account.
To setup the credit card please follow the following steps in MYOB:
Go to the List drop down menu at the top of the screen and select
Account.
Once you have entered the account list select the liabilities tab and
then hit the new button at the bottom of the screen. This will prompt
you to create a new liability account.
Once you have the edit accounts tab up we will now proceed to create a
new credit card account.
The screen should be on the Profile Tab on this page, you will need to
follow the following steps:
- Select Detail Account
- Account Type: Credit Card (From drop down menu)
- Account No: (new number under current liabilities ie 2-1130)
- Name: BOQ Visa/MasterCard
- Opening Balance: Nil
Once we have finished filling in the profile tab we will need to
complete the Details Tab as follows:
- Tax Code: N-T
- Classification: Operating
When you process the transactions on the card you may like to setup a new
interest sub account for all interest charges from your credit card so
they are separated from the other charges being entered through your
alternate accounts.
Once this credit card has been setup you can use it as you would a bank
account. For instance when you spend money you will open a spend money
transaction screen and change the pay from account details from your bank
account to the credit card account and the transactions will be processed
in the same fashion as they have been in the past when put through the bank
account.
mermaidnz
02-07-2007, 05:57 PM
No Jess. It just means you fill out a BAS (Business Activity Statement) every quarter (or do your BAS annually which is worse IMO) instead of just paying your tax installment every quarter. Your BAS is your GST as well as tax that you owe to the ATO.
It gives you no benefits as such except that you can at least claim back a little GST that you have been paying in re: business purchases etc as that does help lower the amount you owe the ATO or if you paid enough GST you may even warrant a GST refund!
Always go to the ATO website and/or your TAX accountant or ATO person in relation to specifics. Plus don't take my word for this as this is just my understanding of it all after I did have to pay GST one year (didn't have to do it previous year as I earnt way under 50k in total prior to deductions as it was a bad earnings year for me.... I'm bound to have to register again after this financial year tho').
hmm ok, so ill keep doing what im doing- maintaining i earn less then 50K haha its great when i reach $50k for the year i can have the left over months off :) sweet!
GoldCoastGirl
02-07-2007, 08:26 PM
^^^ ...........yet how do you account for what (or who) is paying for all your expenses in those left over months ? How do you explain the gap ? I guess you could say you are using cash you have saved up but then again you would have to declare the "cash on hand" on your tax return etc.
The only way around it is to use money you actually do have saved in an online account such as a savings maximiser account ..????
mermaidnz
02-07-2007, 08:55 PM
no, i just dont spend every cent i make each week.
make sure i dont make more then 50K. why wouldnt i be bale to cover my expenses, ive ive saved up cash from the money ive made i should be able to have several months off without the tax man caring? *shrugs*
Lysondra
03-28-2007, 11:34 PM
Have any of you gotten the e-Record from the ATO? A GODSEND I tell you. It's meant for people who work for themselves to document everything.
Which looking at it, it might be in my best interest to get GST. :/
Bugger.
GoldCoastGirl
03-29-2007, 11:41 PM
I still swear by MYOB as it is accepted by the greater majority of accountants and once you learn how to use it is piss easy to use.
BTW, I wanted to add to this thread to say that even the ATO isn't immune to phishing!
I received an email in an online email account that isn't linked with the ATO (I have a specific email account for that)...
After the last annual calculations of your fiscal activity we have determined that you are eligible to receive a tax refund of $173
Please submit the tax refund request and allow us 6-9 days in order to process it.
A refund can be delayed for a variety of reasons. For example submitting invalid records or applying after the deadline.
To access the form for your tax refund, please click here
Regards, Australian Government
It has a crappy ATO graphic as the header as well as saying it is
From: "Australian Taxation Office"<
[email protected]>
DO NOT CLICK ON ANY LINKS WITHIN THAT EMAIL !!!!!!!!!!!!!!!
Lysondra
04-25-2007, 04:44 PM
Heyyyaaa....
If you're not sure you need to apply for GST, do you still? I MIGHT not have to, but I MIGHT have to... I'm afraid if I do it too soon, I'll have to pay GST when I didn't need to... but if I do it too late, the ATO will think I'm trying to scam them.
It's looking possible right now, but not 100%... More like 80%... I probably will need to when Christmas rolls around... but like I said, I dunno.
GoldCoastGirl
04-25-2007, 08:47 PM
You do remember that the end of tax year is end of June right Morr? When that time rolls around then look at how much you have earnt before expenses and before taxes to determine if you need to pay GST or not.
With the amount of money you are earning each week I would say it is a good bet that you would need to register for GST thus do a BAS every quarter (or you can elect to pay your GST bill annually yet that is a headache).
Lysondra
04-25-2007, 08:52 PM
It's October but a business can file as early as July 1st, I called the tax bureau.
I've been working since October so I haven't done a full year and by July I'd most likely not have made 50k.. but by October I should have.
o.o
tulsagurl
05-08-2007, 07:14 AM
...I've got a shitload of deductions, I've kept my receipts for everything over the last year....
Be careful with that, my Fianc'e was audited last year for his deductions, apparently there is a threshold for auditing deduction claims, i have no idea what it is, but yeah, just thought i would throw in my 5 cents.
GoldCoastGirl
05-09-2007, 07:57 PM
A Relaxed and Comfortable Budget
The main revenue focus of this budget is on tax cuts for low income earners, easing restrictions for large loss makers and easing the compliance costs of small and medium businesses. On the spending side there are more benefits being provided to the elderly and an increased focus on environment and education issues.
Generally, it is not the big tax cut pre-election budget that was expected with middle and higher income earners having to wait until after the election before getting any additional income tax relief. It appears the Government is relying on the good economic conditions and possibly some relief from drought conditions to assist in the upcoming election campaign rather than huge tax cuts.
For Business it appears to be a 'business as usual' budget with some clarifying and expected changexd to assist in compliance and tax techincial issues.
Personal Income Tax Cuts
The Budget has provided personal income tax cuts. These are in addition to those previously announced in the 2006-07 Budget.
From 1 July 2007:
* 30% threshold will increase form $25,001 to $30,001
From 1 July 2008:
* 40% threshold will increase from $75,001 to $80,001
* 45% threshold will increase from $150,001 to $180,001
So here are the new tax rates effective 1 July 2007 (start of next financial year here in Australia)............
$0-6,000 ............................ 0%
6,001-30,000 ...................... 15%
30,001-75,000 ..................... 30%
75,001-150,000 ................... 40%
15,0001+ ............................. 45%
Low Income Tax Offset (LITO)
From 1 July 2007, the low income tax offset (LITO) will increase from $600 to $750 and will begin to phase-out from $30,000. Taxpayers eligible for the full LITO will not pay tax until their annual income exceed $11,000 (up from $10,000 currently). In addition, the income threshold at which the offset begins to reduce will increase from $25,000 to $30,000.
As a result of both of these changes, the cinome limit up to which some offset can be claimed will increase from $40,000 to $48,750. Taxpayers with annual incomes between $25,00 and $48,750 will benefit from both the increase in the 30% threshold to $30,0001 and the increase in the LITO.
Screen Media Industry Tax incentives
The Government has announced a range of tax incentives to strengthen and reform Australia's sceen media industry.
Producer Tax Rebate
With effect from 1 July 2007, the Government will introduce a 40 percent refundable tax rebate on domestic feature films and a 20 per cent refundable tax rebate on other eligible domestic screen media productions (including television series, documentaries, and mini-series).
To be eligible for the rebate, domestic productions will need to meet certain requirements, including creative control by Australians and minimum qualifying expenditure thresholds. The rebate will apply to expenditure incurred on eligible productions form 1 July 2007.
The rebate will also extend to international film producers and will replace the current refundable film tax offset (RFTO) available to these producers. The rebate for international producers will be 15 per cent of qualifying expenditure (compared to the existing RFTO of 12.5 per cent) and eligibility for the rebate will be extended beyond the current criteria for the RFTO to include qualifying expenditure exceeding $5.0 million on post, digital and visual effects production in Australia for foreign films. These enhancements will apply to films for which production commences after 1 July 2007.
As part of these reforms, the current tax incentives for capital expenditure incurred in acquiring an interest in the copyright relating to an Australian film will be phased out, with no new appplications to be accepted after 30 June 2007.
Indirect Tax Changes
Continuing the trend of recent Budgets, GST collections are budgeted to increase by more than twice the rate of anticipated inflation over the next 4 years (rising to more than $50B in 2010/11), reaching 3.8% of GDP in 2007/08 (up from 3.6% in 2001/02).
GST - Increasing GST Registion Threshold
The Tresuerer announced an increas in the GST registration annual turnover threshold effective 1 July 2007. For businesses, the threshold will increase from $50,000 to $75,000.
Voluntary registration and the option of remitting annually will continue to be available.
GST - Additional ATO GST Audit Budget
The ATO is to be given an additional $15.2 million over the next 4 years to help reduce the existing levels of taxation debt. The additional funding is expected to generate an additional $65 million in GST collections over the next 4 years.