Some of ITP’s Tax Professionals from stores all over Queensland have offered their favourite tax tips to help you with tax time.
Tip 1: First home owner savers account scheme
Accounts opened after 13 May 2014 will not be able to access any concessions or government contribution for personal contribution. Existing account holders will continue to receive the government contribution for personal contributions made in 2014. Tax and social security concessions will cease from 1 July 2015 with restrictions on withdrawals removed. These accounts will then be treated like any other account held with a provider.
Tip 2: Company tax rate and paid parental leave levy
From 1 July 2015, the company tax rate will decrease from 30% to 28.5% for small companies with less than a $2 million turnover. Additionally, companies with taxable income larger than $5 million will be imposed with a 1.5% (PPL) levy.
Tip 3: Salary sacrifice for superannuation
The concessional cap has been increased from $25 000, to $30, 000 for people under 49 years of age and $35, 000 for people over 49 years of age. They can get the benefit of this increased threshold by decreasing their gross income, and increasing their super savings for retirement.
Tip 4: Using your phone for work purposes
If you use your mobile phone or internet for work related purposes, be sure to keep a diary for a one month period to record the amount of time you use your mobile phone or internet for work related purposes and claim the relevant portion as a tax deduction.
Tip 5: Double check your deductions
Make a list of all of your expenses and deductions, even the ones you’re unsure about, and your ITP Tax Professional will be able to advise you which are applicable.
Tip 6: HECS/HELP and SFSS Debt
Make sure your employer and pay roll are aware of any HECS/HELP and SFSS debt that you may have and check that the correct tax is being withheld to avoid ending up with a tax bill.
Tip 7: Vehicle Expenses
If you use your vehicle for work purposes, ensure you’re keeping a log book for 12 consecutive weeks.