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A guide to administering deceased estates

 

We all know Benjamin Franklin’s quote “In this world, nothing is certain except death and taxes.” But as only an accountant can be macabre enough to find amusing, tax continues after death – even once you’re dead, the Australian Taxation Office (ATO) still requires you to lodge a tax return! Ok, so clearly not the deceased person, but their legal representative (usually the Executor) must assume that responsibility.

I won’t go through the entire legal process of how an estate is administered – I’m an accountant not a lawyer after all. But from a tax point of view, there are a few specific requirements. Continue reading “A guide to administering deceased estates”

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What young adults need to know about debt

Back when Bank Managers roamed bank branches, finance was far less complicated. (yes, it’s true, there were these people who you could meet IRL at the local bank!) You would have visited your bank branch to apply for your home loan or credit card or to open a new savings account. There wasn’t too much more to think about and often people banked with the same bank for their entire working life (I know, a crazy concept!). Now, we have to deal with student loans, “buy now pay later” options, whether we want tap and pay through our watch, should we have a credit card with a low rate or rewards points, how to get bonus interest on our savings every month and everything can be done online without ever talking to a person. And that’s before we even think about superannuation (don’t worry, I won’t go down that rabbit hole – I know we don’t have time!)

Last week we talked about young adults and tax. This week we take a look at finance and more specifically, debt and loans. Continue reading “What young adults need to know about debt”

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Superannuation guarantee – the basics

Superannuation guarantee is legislated to increase from July 1, 2021 and last week the Treasurer announced a review into retirement incomes. Superannuation is on the economic agenda and the rate at which superannuation is paid could be changing in the future. It’s an important part of the Australian economy – it’s estimated that at June 2019, assets totalling $2.9 trillion were held in superannuation funds! So I thought it timely to go back and do a refresh of exactly what superannuation guarantee is, what your responsibilities are as an employer and what are your rights as an employee. Continue reading “Superannuation guarantee – the basics”

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Housework & tax deductions

Today let’s talk about housework – working from the house that is, not cleaning the house!

Working from home has never been easier or more convenient – super fast broadband (for some!); reliable technology and long commutes mean that for many employees, it’s an attractive option. And with the rise of the gig economy and many choosing to go solo with the benefits of being your own boss, it’s super important to maximise your home office expenses and not fall on the wrong side of our friends at the Australian Taxation Office (ATO). Today, we will aim to do all that and leave you with more time to relax (who cares about the housework!). Continue reading “Housework & tax deductions”

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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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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”