Individual Lodgement Update

July 29, 2015

As we are now we are into the 2015/16 financial year, we wanted to let you know of your taxation lodgement obligations.

Tax Return Lodgement

Generally, a tax return is due for lodgement with the Australian Taxation Office by 31 October of each year.  However tax agents are granted an extension to their clients’ returns beyond 31 October.  Please note: The extension is not granted for the clients who have one or more tax returns outstanding as at 30 June 2015.

Remember, if you are expecting a refund, the earlier you lodge your tax return, the sooner the refund will come.

Tax Rates For 2015

There was no change to the personal tax rates applicable to the 2014/15 year. The rates as follows:

The following rates apply for the 2014/15 year.

Taxable Income $ Tax on taxable income
 

0 – $18,200

 

Nil

$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $80,000 $3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000 $17,547 plus 37c for each $1 over $80,000
$180,001 and over $54,547 plus 45c for each $1 over $180,000 + 2%

The above rates do not include the Medicare levy of 2%

 

Electronic Refunds

Individual tax returns with an estimated refund will require Australian bank account information when lodging electronically. This comprises BSB, account number and account name.

Refunds will be deposited directly into the bank account rather than a cheque being sent out by the ATO. If you did not provide this information when we did your tax return last year or if you have changed bank accounts, please provide this information to us this year.

Private Health Cover

If you had private health cover for the 2014/15 year, we will need the statement your Health Fund sent you. This information is required by the ATO to be inserted into the tax return.

Superannuation

The Superannuation Guarantee levy paid by the employer remains the same 9.5% on gross wages earned by an employee.

Self-Managed Super Funds (SMSF)

For people in business, but also for employees building up their assets through a SMSF remains an attractive alternative to investing your superannuation entitlement in an Industrial Fund. In the May 2015/16 Budget there were no changes to the Superannuation rules. Moreover, the Prime Minister has since stated that the Government has no plans for any adverse changes in the future.

If you would like to find out more about SMSFs and how they work please contact us or talk to Wendy Wong or Dimitri when you come to see us for your 2015 tax return (you can also check our website about SMSFs).

Capital Gains Tax

During the course of any financial year people acquire or dispose real estate property, shares, ongoing business etc. while the CGT provisions are triggered only when an asset is sold, the method and structure of buying is relevant when comes to CGT. And even the main place of residence can be caught by the CGT provisions if at some stage you rent it or you move to another state or overseas for a while. So, it is important that you become aware of any CGT consequences when you buy a property. For instance, if you buy a property and you live in first and then you rent it later will have CGT consequences. Reversely, if you rent it first and live in later the CGT consequences are different in its affect. For more details about CGT please check our website, ring us or see Wendy when you come to our Office for your tax return.

 

Should you have any queries or wish to find out more about the matters raised here or any other tax related matter, please do not hesitate to contact us on (02) 9713 1199