In broad terms the Medicare levy surcharge applies to individuals who do not have adequate private health hospital insurance to cover themselves and their dependents and their income exceeds the relevant thresholds.

But there are a few things to consider to ensure you meet your obligations and are in fact exempt from the surcharge:

• an adequate private health insurance policy must include cover for hospital and not just ancillary (or extras)
• any excess payable on hospital admission must not exceed $500 for a one-person policy, or more than $1,000 for all other policies
• if you are a Defence Force member and have dependents (including a spouse) you should review your circumstances as only a member can be entitled to full free medical treatment, and the exemption from the Medicare levy surcharge does not extend to the spouse
• spouses with separate finances should review their circumstances, particularly when one spouse has adequate private health hospital insurance and the other spouse does not
• taxpayers who separate or divorce may also find themselves under scrutiny in regards to the Medicare levy surcharge

Information can be found on the ATO website, or contact me to discuss.

Regards

It’s finally here, the Australian Taxation Office (ATO) have released a fact sheet titled “Online selling – hobby or business?”

The ATO, of course, are looking for taxpayers who may not be meeting their tax obligations in relation to their online selling activities and so the fact sheet aims to address some of the factors to be considered in making a determination about this.

These key factors include:

• whether the taxpayer has paid for an online presence
• whether the taxpayer’s main intention is to make a profit from online selling
• whether the taxpayer’s selling activities are repetitive
• whether the taxpayer manages their online selling activities as a business

It’s been suggested that the ATO may consider a taxpayer with an online sales value of $10,000 or more to be in business, unless the taxpayer can prove otherwise – so it pays to be sure!

To review these factors in more details and specifically address your personal circumstances, contact The Tax Chic for a 90 minute consultation – RRP $275, current investment just $220 (expires 31st August, 2016)

Regards

New rules from the ATO now limit the methods of claiming motor vehicle expenses to the cents per kilometre method and the log book method – and if you’re choosing the log book method then there’s a few things you should know!

You can pick up a pro forma logbook from most stationery stores and each record is valid for 5 years, but should be reviewed regularly to ensure the business percentage calculated remains appropriate.

The ATO website lists the requirements of a logbook to include:

• when the logbook period begins and ends
• the car’s odometer readings at the start and end of the logbook period
• the total number of kilometres the car travelled during the logbook period
• the number of kilometres travelled for each journey recorded in the logbook (if you made two or more journeys in a row on the same day, you can record them as a single journey). You will need to record the
  • start and finishing times of the journey
  • odometer readings at the start and end of the journey
  • kilometres travelled
  • reason for the journey
• the business-use percentage for the logbook period
• the odometer readings at the start and end of each income year you use the logbook method

You will see that I’ve drawn attention to the “Reason for the Journey” above – you should ensure that your explanations are detailed as this is an area the ATO are looking into and insufficient details may result in an unfavourable adjustment to your logbook – we don’t want that!!

Regards

Need your tax done?  I’m your girl!

Don’t want to leave the house to do your tax?  I’m your girl!

Can’t take time off work to do your tax?  I’m your girl!

That’s right – The Tax Chic can complete your tax with a fully online and paperless system…backed with the support of professional knowhow and excellent customer service.

With standard tax returns costing just $147*, this is the year to contact The Tax Chic.

Simply provide your full name, date of birth and Tax File Number and you’ll be sent a link to an online App (available for both Apple and Android devices).  The App allows you to answer all the relevant questions and take photographs of your documentation – when you’re done simply press “submit” and The Tax Chic will do the rest.

Once complete you’ll receive an e-mail copy of your tax return with a request for e-signature – no paper need change hands at all.

So easy!  Looking forward to hearing from you!

Regards

*standard tax return includes wages, interest income and basic deductions, rental income or business income and complex deductions may incur additional fees.