Tax Rates

From 1 July 2009             Tax Rate                             From 1 July 2010               Tax Rate

             $                            %                                               $                            %

          0 -     6,000                0                                         0 -     6,000                      0

    6,001 -   35,000               15                                  6,001 -   37,000                    15

  35,001 -   80,000               30                                 37,001 -   80,000                    30

  80,001 - 180,000               38                                 80,001 - 180,000                    37

180,001 +                           45                               180,001 +                                45

The above do not include  the 1.5% Medicare Levy

Tax Offsets

In the 2009/2010 year if you earn $15,000 or less you will not pay any tax so it is important to make sure you use all of this threshhold up.

Year         Offset Amount        Tax Free Income      Starts to shade out           Lost at

2009/10      $1,350                    $15,000                     $30,000                   $63,750

2010/11      $1,500                    $16,000                     $30,000                   $67,500

2011/12      $2,100                    $20,000                     $30,000                   $82,500

Tax Return Checklist

• PAYG Payment Summary ( the old Group Certificate) from employers, Centrelink, Austudy, Pension, ETP payment certificate
• Previous year's tax return and assesment notice
• Superannuation withdrawal documents
• Family Tax Assistance Statement of Benefits
• Bank Statements and Savings Books with interest updated as at 30th June
• Distribution, interest and dividend slips (usually two per year)
• HECS, HELP or Austudy details and loans (if any)
• Receipts for all work related expenses and deductions
• Motor vehicle log books for work travel
• Self-education expenses
• Donations
• Details of spouse's income
• Private Health Insurance Certificate
• Medical expenses over $2,000, details of all medical expenses
• Instalment Activity Statements

For rental properties: Agent's statements and details of all expenses, interest, council & water rates, levies, repair and maintenance, travel etc.

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Work Related Deductions

Claims for work-related expenses, car expenses and travelling expenses by an individual must be substantiated if the claims are to be allowed.

Annual practising certificate

Bank charges (if account earns interest). Not for private transactions.

Briefcase

Calculators and electronic organisers

Clothing - protective

            - occupation specific

            - compulsory

Coaching classes

Computers and software

Conference and seminars - to maintain or increase skill

Depreciation

Dry cleaning for above clothing

Election expenses for candidates - limit $1,000 local

First-Aid course

Gifts - donations

Glasses and goggles - if protective

Home office expenses - heat, light, power and depreciation

Income protection insurance

Interest - if related to income

Internet and computer equipment

Laundry and maintenance

Meals - overtime (if under an award)

         - when travelling overnight for work related purposes

Medical examination - work related

Parking fees and tolls

Photographs - artists

Professional library

Protective equipment

Repairs

Self-education - work related

Stationery

Subscriptions

Sun protection

Tax Agent

Technical and professional publications

Telephone - cost of calls and rental charges

Tools - work related

Travel expenses - work related

Union fees

Watch - nurse's fob watch

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Medical Expenses over $1,500

For the 2009/2010 year a 20% tax offset is allowed for net medical expenses on the surplus over $1,500 after deducting any reimbursements.

From 1 July 2010, the Government will increase the threshhold above which a taxpayer may claim the 20% net medical expenses tax offset from $1500 to $2000, ad will commence annually indexing the threshhold to the CPI.

The annual tally for medical expenses can be obtained from your chemist, Health Fund or Medicare and should be claimed in your tax return.

The eligible costs include doctor's and dentist's gap charges. Provided the medication or treatment is prescribed, including such items as botox injections, cosmetic surgery and Viagra pills, they may all be claimed.

What is the definition of a great Tax Accountant?

Someone who has a loophole named after him