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Personal Services Income – Are you affected?

This week I was asked a fairly straightforward question – I am a sole trader, operating with an ABN, can I claim travel to client premises? What’s the big deal you say, of course she can! But as is always the case with tax, the devil is in the detail. The other part of the email gave me some more facts. There is only one client, payment is made on an hourly rate and the travel involves a three hour round trip by car. Suddenly Personal Services Income (PSI) alarm bells were ringing and the answer becomes much more complex. Continue reading “Personal Services Income – Are you affected?”

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What are your new financial year resolutions?

I know I’m an accounting nerd, but surely I’m not the only one who loves the beginning of a new financial year? It’s time to draw a line in the sand, review what happened last year, but more importantly, focus on the endless possibilities that the future may bring.

How is your business going to grow in 2019/20? Are you going to leave it to chance or are you going to take control and focus on growing your business? Are you working harder than ever but don’t seem to have cash in the bank? Time to set your budget. And while you can start at any time of the year, it’s good to start with a whole new year in front of you! Continue reading “What are your new financial year resolutions?”

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All about cars (and tax!)

In my experience, people fall into one of two categories when it comes to cars. There’s me – I couldn’t care less what my car looks or performs like as long as it gets me to where I need to go. In a crisis, I’m able to check the oil and change a tyre, but other than that, I’m just not interested. At the other extreme are some people I know who drive very fancy (think expensive) cars, like to know exactly how it works and how it’s made and take pride in being able to change a tyre in under 3 minutes!

But, when it comes to cars and tax, we all follow the same rules. Today, we’re going through what tax deductions are available for motor vehicles as well as how you can claim eligible GST input tax credits. Continue reading “All about cars (and tax!)”

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Super Changes from 1 July. What does it mean for you?

There has been a lot of noise in the last couple of weeks about changes to superannuation that take affect from 1 July 2019. The changes arise due to some Productivity Commission recommendations. Their purpose is protect your retirement savings by limiting superannuation funds’ ability to charge fees and insurance on certain accounts. So, the big questions: does it apply to you? Will you lose out? and What do you need to do before 1 July? Continue reading “Super Changes from 1 July. What does it mean for you?”

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10 tax planning tips for small business

As 30 June approaches, many businesses are asking how they can save tax for the year. There’s lots of noise about the instant asset write off and many of the large retailers are offering discounts to entice you to spend before the end of the financial year. But before you leap in, this is only one of the ways to save tax.  Here are 10 tax saving tips for you to think about before you head out to your nearest computer retailer. Continue reading “10 tax planning tips for small business”

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How to save tax in 2019

The Happy EOFYS adds have started on tv and in the newspapers, so you know we must be only a few weeks until the end of the financial year. But, you’re an individual Pay As You Go salary earner, so nothing to see here – right? Wrong! While it’s true that most of these adds are targeted to the business owner, as a wage earner, there may still a few things you can do before 30 June to reduce your tax. Continue reading “How to save tax in 2019”

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Medicare Levy, surcharge and private health insurance

I was completing a tax return last week for a client. They asked a question about what extra tax they would need to pay if they decided to get rid of their private health insurance.

Now first up, let me say that I’m not going to give anyone advice about whether their policy is the right one for them or even whether they get value for money from their policy. But I did attempt to explain the tax implication of not having private health insurance.

It made me realise how complicated the Medicare levy is and how ridiculously difficult it is to give a straight answer to a really simple question. Continue reading “Medicare Levy, surcharge and private health insurance”