I’m sure we all know that the income tax we pay is collected by the Australian Taxation Office (ATO), and is subsequently forwarded to the Australian Government to be spent!

But exactly what do they spend it on?

From 1st July, 2014 all individual taxpayers will receive a Tax Receipt issued by the Australian Government.

This Tax Receipt will be received by the taxpayer with their Notice Of Assessment, and provides details on how an individual taxpayer’s income tax is contributing towards the expenditure of the Government.

The Tax Receipt also includes details of the debt levels of the Government and interest payments on this debt.

I lodged my own personal tax return recently and received my Tax Receipt in the mail this week – I was quite impressed (just confirming that I am a nerd…)

The detail included in the Tax Receipt, right down to the dollar allocations, is a great way for taxpayers to really take ownership of their contribution toward the running of this country.

Have you received your Tax Receipt?  Any thoughts?

Regards

Travelling for work always sounds so glamorous…but in reality it means odd hours, strange beds and generally getting out of your routine!

On top of that there is the planning required and the money matters that need to be dealt with.

Depending on the nature of the work you do, any award you are employed under and the type of employer you work for, travel expenses may be treated differently.

In some instances your employer may simply reimburse you the full amount of expenses incurred upon presentation of receipts – this is by far the easiest method for employees, as the amount received is not treated as income and the expenses are not deductible – so there is nothing to enter into your tax return.

However many employers may be required, or choose to, provide a travel allowance.  This travel allowance is often in line with the recommended amounts as prescribed by the Australian Taxation Office (ATO).

Each year the ATO release a Taxation Determination setting out the amounts they consider to be ‘reasonable’ for claims for domestic and overseas travel expenses. These expenses include accommodation, meals and deductible expenses which are incidental to travel.

If you receive a travel allowance, you should familiarise yourself with the record keeping requirements…you can read more on the ATO website here.

Regards

It’s “Frivolous Friday”!

One of the great things about being The Tax Chic is that I get to jump in my cool little car and hit the road!  Often travelling the roads of country Victoria, I regularly find myself in Melbourne to attend training or visit clients.

With this comes finding a place to stay…I have my favourites around town (you’ll probably see me write about them from time to time), but usually I think about where I need to be, do I need to use my car and of course…how much is this going to cost me??

Last night I discovered The Como Melbourne on Chapel Street…I was greeted at the front door by smiling faces who made me coffee as I checked in.  In my room (which is big enough to kick a football in), I instantly felt relaxed…a king sized bed, a beautiful sized bathroom and a separate office area (which allowed me to write this post without feeling like I was in my bedroom)…really does make all the difference!

I had a discussion about camping (as in…the bush…) with some friends recently who joked “Bron only camps out under 5 stars…!”, not always the case, but definitely the case last night!

If you regularly travel for work, keep an eye out for our upcoming post regarding travel allowances!

Regards

Note: this post is not sponsored by The Como Melbourne and is not an endorsement of The Como Melbourne, it is simply my opinion.

Superannuation is essentially saving for retirement.  In Australia, the Government support and encourage contributions to superannuation so that you can have funds available to you when you retire.

As of 1st July, 2014, the amount of superannuation support to be provided by employers increased from 9.25% to 9.5%, but as an employee you can still make further contributions, and depending on your circumstances and how the contributions are made, you may receive a tax benefit or be eligible for the Government Co-Contribution.

If you are a business owner, subject to a few conditions, you may be eligible to claim a tax deduction for contributions made to your superannuation fund – you should check with your Accountant!

But just how much superannuation will you need when you retire?  That’s almost like asking “how long is a piece of string?”, but in all seriousness, you should discuss your retirement needs with a financial planner to ensure you are on track.

Many superannuation funds have “Retirement Needs” calculators on their website, so you might like to have a look there first!

Note: if you are concerned that your employer is not meeting their obligations, check your superannuation fund balance and transactions, then talk to them to resolve the issue.  If that fails, you are able to take the matter to the Australian Taxation Office (ATO)

Regards