As can be seen below, we have listed the services that we offer to our clients along with a brief description. The list is by no means all-encompassing; if you do not see the service you require listed, please feel free to inquire with us. If it is not a service we provide, we would be able to refer you to a qualified professional.

• Accounting Services
• International business advisory services
• Consulting Services
• Buying & Selling a Business
• Reviews & Compilations
• Forensic Accounting
• Financial Forecasts & Projections
• Tax Planning & Preparation
• Representation to the Australian Taxation Office
• International Taxation
• Estate & Trust Tax Preparation
• Business Succession Planning
• Estate Planning
• Investment Review
• Retirement Planning
• Debt & Financing Services

Accounting Services

For Accord Accounting, providing financial information to our individual and business clients in a timely and accurate manner is an obligation that we feel cannot be compromised. Meaningful and well organised financial records ensure your business operations will run more efficiently.

Our Accounting firm in Sydney provides a full range of cost effective accounting services including the following:

• Accounting management  for international businesses
• General ledger and subsidiary ledgers set up and management
• Organise and implement systems for the accounts of new and existing businesses
• Personal and business tax returns
• Personal and business financial statements
• Litigation support

International business accounting and advisory services

Advise and support business projects and marketing activities inside most locations including the UK, Australia and Asia.

Consulting Services

Our accountants in Sydney measure our worth by the personal and business successes of our clients. We can help your business identify areas negatively affecting profitability and growth and develop solutions that are practical and technically sound. In addition to acting as a sounding board for management, we provide comprehensive, flexible strategies that address the issues affecting your business. The following is just a few of the areas in which we provide consulting services:

• Type of investment selection
• Business valuations
• Preparation and planning when buying or selling a business
• Preparation and financial planning for retirement
• Preparation and trust planning for Estates

Reviews and Compilations

Our accountants view our role in the financial reporting process as a chance to provide constructive solutions for maximizing your company’s profitability and efficiency. We provide financial reporting on different degrees of assurance. The first out accountants in Sydney review some analytical procedures conducted with limited assurance. The second is compilation which is based upon client information provided and used primarily for internal use with no assurance at all.

Forensic Accounting

Our accountants in Sydney use accounting and auditing skills to provide an analysis of financial records in combination with dispute resolutions, in addition to fraud and theft investigation. The damage measurement methods our accountants use can determine the extent of financial loss and illegal accounting practices.

Financial Forecasts and Projections

Forecasting is an essential necessity when trying to effectively manage a business and drive it to a profitable position. From simple projections to complex financial modelling, our experienced accountants in Sydney can assist you in achieving your company’s financial goals.

Tax Preparation and Planning

We have highly qualified Australian tax accountants with many years of experience to assist with tax planning and preparation. Having an excellent tax plan and preparation forms a winning combination for our successful individual and business clients. Whether you are an company, individual or a multi-tiered partnership, our experienced staff can develop tax strategies that take advantage of new tax laws and legislation.

ATO (Australian Tax Office) Representation

With our years of experience dealing with many taxation authorities, we have achieved a level of competence that can ensure our clients they are being properly represented before the tax regulators.

International Taxation

We have a specialised team of accountants for expat tax. Our experience with the taxation of Australian residents working abroad and foreign citizens working in Australia has provided us with an extensive base of knowledge in the area of international taxation.

Estate and Trust Tax Preparation

Effective estate and gift planning assists the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. Our accountants in Sydney can guide you through the complex process of getting your financial affairs in order.

Business Succession Planning

Our accountants in Sydney can assist with the effective coordination of the transition of your business to your successors, which is critical to ensure its continued success once you decide to remove yourself from the company’s day to day operations. With our experience in tax and other financial matters, we are fully qualified to address the complex issues of business continuation and can assist you in developing a strategically sound plan.

Buying and Selling a Business

Structuring the purchase or sale of a business properly is a critical step in the process of buying or selling a business. Our competent staff has experience to guide you through the acquisition/disposition process by addressing such issues as cash flow analysis and tax considerations.

Estate Planning

Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can guide you through the complex process of getting your financial affairs in order.

Investment Review

As you develop your investment strategy, we will act as your sounding board. We can help you and your investment advisor build an investment portfolio that takes into consideration the impact of taxes and produces a favourable after-tax return.

Retirement Planning

Effective implementation and periodic review of your financial plan will ensure financial independence during your working years and through your retirement years.

Debt and Financing Services

Debt management and the evaluation of financing options are issues that our experienced Australian accountants in Sydney deal with every day. Let us use the experience of our firm to assist you in securing financing for your personal or business needs or consolidating your current debt to a more manageable level.

Fortunately with the help of business tax advisers, you can make it through the financial year with minimum fuss. For eleven months and 30 days, though, the records that go into that tax return are your responsibility. Today we will look at the top tips from Sydney tax agents on meeting your obligations and maximising your return.

Keep it together

Keep all business expense and income records together in a cash book. This is usually done with bookkeeping software and spreadsheets, though the manual method is still acceptable in some circumstances. Popular applications include MYOB and Quickbooks, and many Sydney tax agents will be able to train their clients in the functions they will specifically need. Easy Tax have been guiding SME’s for decades and will assist you easily in this area.

Employee records

When it comes to tax time, the records that your business tax agent will need include payment summaries, eligible termination payments (to employees that left the company with benefits owing), and reportable fringe benefits. Your payment summaries will be automatically generated by all good bookkeeping software programs; if you need additional advice on calculating them (for example, if you keep manual records), Sydney tax agents can usually help out. easy tax can help out.

The “Five year itch”

You need to store your tax records for a minimum period of five years, while they are still subject to a possible audit by the Tax Office. In most cases, you will not have turned over every single record to your business tax agent, you will simply have given them a report detailing total expenses. Keeping the tax invoices and bank statements relating to your expenses needs to be done in house, for five years at least.

Keeping records for every pay period

There are plenty of records and payments that you can’t leave until the end of the year, but which must be paid either every pay period or every month. These obligations fall under three main categories:

• PAYG withholding (the tax that is owed per payment to yourself and your employees)
• GST recording obligations
• Superannuation

You may have gone to your Sydney tax agent for advice when you first started up your business about these issues – or you may have muddled through until now! We always recommend that you check in with your business tax accountant at least yearly about the state of your day-to-day record-keeping.

They may be able to point out deficiencies that would otherwise only be found when a Tax Office auditor was going through your records. They will also be able to advise you on state legislation regarding recording keeping for SMEs, which vary widely across Australia.

Whatever your situation, Easy Tax is passionate about helping you manage your business to its full potential so that you can achieve the lifestyle you deserve.

Technorati Tags: small medium enterprises, tax tips

Technorati Tags: medium enterprises, tax tips

Q: Who can receive LAFHA?

A: Anyone who is required by their work to temporarily live away from their usual place of residence may be eligible to receive a tax free ‘Living-Away-From-Home’ allowance. This is with the provision that they intend to return after the cessation of their contract. Examples include: An Australian citizen or permanent resident moving from the city to the country, or vice versa, an Australian moving overseas, or an expat moving to Australia.

Q: Work has required me to live away from home for several months, but I only recently discovered that I am eligible for LAFHA. Can I claim LAFHA for these prior periods?

A: This depends upon your employer’s payroll department and procedure. In particular, if your employer has already paid your super and PAYG obligations for the periods in question, then adjusting and resubmitting the payroll with the new figures can be time consuming and thus costly them. Some employers may be willing to undertake such, however in most cases it is advised that one just receive the LAFHA moving forwards.

Q: I have spent an exceptional amount of money on food whilst working away. How much of this can I claim under LAFHA?

A: The ATO has set fixed amounts as to how much LAFHA can be claimed under the food component of the allowance. Any amount claimed beyond these limits will accrue Fringe Benefit Tax to your employer. We are aware of these limits, and can ensure that the amount claimed does not exceed them for you.

Q: I will be renting an apartment; can the entire rental amount be claimed as LAFHA? Can any amount beyond my actual rent be claimed?

A: In most cases the exact amount of your rent will form your rental allowance. However, if your rent is excessive, because the accommodation claimed is unnecessary or otherwise incapable of justification to the ATO, then only a lesser amount, according to what is ‘reasonable’, can be claimed.
Although it is theoretically possible to claim more than your rent in LAFHA, this is not permissible unless one is paying significantly less rent than they would, considering all the circumstances, otherwise be expected to – however this is only acceptable in a most exceptional situation.

Q: I will soon be applying for Permanent Residency in Australia. How will this affect my LAFHA?

A: As this is substantial evidence of your intention not to return to your main residence overseas, you would no longer be eligible for LAFHA. Consequently, you should let your employer, or LAFHA specialist, know as soon as you apply for Permanent Residency.

Q: When will I receive my LAFHA benefits?

A: As LAFHA is administered by your employer rather than the ATO, the LAFHA benefits will be provided to you on a timetable set by your company’s payroll. Generally once LAFHA has been installed your LAFHA will be deposited in your bank account at the same time as your normal pay. Consequently when the time for your personal tax comes, you will find that you have less taxable income to declare as the LAFHA is a non-taxable component of your package.

Q: How long can I receive the LAFHA benefit for?

A: The legislation does not specify a maximum time limit for receiving LAFHA. Rather the ATO, in determining one’s eligibility for LAFHA, or in auditing any LAFHA granted, will objectively analyse all facts that suggest the individual does have a home from which they are living away and to which they intend to return. Obviously the fact that someone has stayed in the same location for an extended period of time may suggest that they have established a home in that new location, or are not intending to return to their previous location. Consequently the amount of time one stays in any location is one factor among many that the ATO will consider when deciding if LAFHA can be granted, or should continue to be received.

If you need assistance in incorporating the LAFHA, we are CPA-qualified payroll specialists and tax accountants and will help you understand what’s required. Contact us through our site or call (02) 9419 5322 for LAFHA assistance today!

Congratulations! After years of planning and wishful thinking you have finally decided to start your own business. If you are obtaining income from your business and it’s not a hobby, then you need to declare your taxable income. You can also claim deductions for certain expenses that you incur when running your business. Here’s a quick rundown on the small business tax issues that you need to consider when starting your own business.

Structure of your business

You need to decide on the legal structure of your business. There are four main business structures commonly used by small businesses in Australia:

• sole trader
• partnership
• trust
• company.

Sole traders, partnerships, companies and trusts have different legal obligations and are taxed differently. For instance, sole traders can use their individual tax file number while partnerships, trusts and companies need to apply for a separate tax file number called a business tax file number. A company will also have to apply for an Australian Company Number (ACN) before applying for an Australian Business Number (ABN).

You are not locked into a structure and as your business grows, you can change the structure of your company.

Australian Business Number (ABN)

Under Australian law, you are not required to have an ABN but having an ABN will make it easier to register for GST and other business tax registrations such as pay as you go (PAYG) withholding and avoid having amounts withheld from payments to you. Businesses must withhold 46.5% of any payments they make to you unless you quote an ABN.

An ABN is free and you can apply for an ABN by visiting the Australian Business Register.

Goods and services tax (GST)

You only have to register for the GST if any of the following apply:

• your annual turnover is $75,000 or more or $150,000 or more if you are a non-profit organisation.
• you provide taxi travel and/or
• you wish to claim fuel tax credits.

You need to monitor your taxable earnings. If they rise above $75,000 or more, you have 21 days to register for the GST or you will be penalised.

Fuel tax credits

You may be able to claim fuel tax credits for taxable fuel you used in your business. The only exceptions are aviation fuels, alternative fuels and fuels used in light vehicles (of 4.5 tonne GVM or less) travelling on a public road. You can claim around $19 in fuel tax credits for every 100 litres of fuel you use in your business, even if you use it in machinery, plant or equipment such as cement mixers, compressors or bulldozers. Consult the Australian Tax Office for a full listing. To be eligible for fuel credits, you will need to register for fuel tax credits and you must be registered for GST.

Pay as you go withholding (PAYG)

As a sole trader, you pay the same tax as individual taxpayers, at personal income tax rates. You may have to register for PAYG withholding if you make payments of a salary, wages, commissions or allowances to an individual or an employee. You may also make payments to yourself as the director of the company or make payments to contractors.

You don’t have to register with the ATO for super purposes but you must offer your employees a choice of a super fund and pay contributions into that fund.

Other business tax registrations

There may be tax registrations specific to your business that you can apply for such as:

• fringe benefits tax, if you provide fringe benefits to employees
• wine equalisation tax, if you are a wine manufacturer, wholesaler or importer
• luxury car tax, if you are a retailer, wholesaler or manufacturer of luxury cars

Record keeping

You must keep any account books, records or documents related to preparing your income tax return for at least five years after they are prepared, obtained or the transaction is completed, whichever occurs last. Some records need to be kept for more than five years like capital gains tax for example. You also need to keep records like:

• bank records
• asset purchases
• contracts and agreements
• year-end records, and
• minor deductible expenses such as claiming for certain work, car and business travel expenses.

You may also need to keep additional records if you have applied for the GST, have employees or contractor records, fuel tax records, motor vehicle records, stocktaking records and no ABN withholdings.

Consult your accountant or the Australian Tax Office in regards to your tax obligations and what specific deductions you can claim for your business.

Contact Easy tax today for all your small business tax issues.

Looking for professional Sydney accounting services to handle your tax issues can be hard work. Whether you’re self employed or run a large business with your own employees, preparing accounts and getting ready for the end of the financial year can be a very complicated and time consuming process. In fact simply maintaining your business’s financial data throughout the year can be a chore in and of itself. Rest assured, all businesses in the area are going through the same problem, and many turn to various Sydney accounting services to help manage their accounts.

Although there is tones of software and applications out there that can aid you in managing your accounts, they are only as good as the inputted data, and therefore do not solve any problems that a Sydney accountant could pick out. There is also a learning curve when using software that is time consuming. An accountant is fully trained at using all types of software.

Declaring taxable income and having legitimate detailed records is a legal responsibility with dire consequences if done incorrectly or fraudulently. Ignorance is no excuse. Thankfully there are a number of highly experienced Sydney accounting services that can help your business stay on top of its accounts. Easy Tax leads the pack of tax accountants. Our services are based on hands on experience earned over twenty plus years in the business.

What do Accountants do?

Essentially what the various Sydney accounting services do, is what every business should do with their financial records, but instead of doing the bare minimum to get by each financial year, accountants spend the time to keep every single record in check and have the ability to produce reports and implement several techniques to reduce taxable income. Where individuals may ignore things like deductions because it takes too much time to investigate, accountants will try their best to produce the best efficient and cost effective accounts for their client.

No matter what your situation, researching the numerous Sydney accounting services out there can help you stay on top of your business and thrive, even if the world’s economy is down.

People often search for “Tax Accountant Sydney” on the web because it can be very hard to find a reputable accountant for your Sydney based business, or for self employment. With so many accountants out there all claiming to be the best how can you be sure they can do any better than you?

The first thing to realize is the actual need for an external tax accountant. Sydney is a thriving and competitive city for all types of businesses, although many simply fail at the accounting level. If you are spending too much time managing accounts, going through financial records or researching what deductions you can make, instead of focusing on other aspects of the business that actually bring in profit, then that is a sign that you should be searching for a tax accountant in Sydney. Although you’ll have to pay them for their work and expertise, they could actually save you on taxable income, and you’ll have more time to focus on the business and make more money.

Whereas you might do the bare minimum to get by and file your tax return, a Sydney tax accountant will make it their job to keep every single piece of financial information in check, and to save you the most amount of money possible through the effective use of accounting techniques and deductions. You will no longer have to worry about any calculations, keeping your records in order or learning complicated accounting software, because your accountant will do it all for you. Not to mention they can help protect your business and give you confidence in the case of a tax audit.

When finding a tax accountant in Sydney you have to do your research. Not every accountant is qualified or will fit your own personal needs. First you’ll need to look at their experience. Not just how many years they’ve been offering their services, but what types of businesses they’ve been representing. Finding one that has served clients in your field is an important decision making factor. Price is also obviously an important factor. You need to weigh up experience versus price, because the more years in the game usually mean higher fees. Their staff is also something to consider. They may be a well respect and experienced firm, but does that mean anything if they just delegate your accounts to a junior?

Easy Tax is a leading tax accountant firm in Sydney that has over twenty years of experience in accounting. They have helped clients with small businesses, IT contractors and consultants, various tradesmen and builders, Medical practices and professionals, Property investors and International clients.

So when you are searching -  tax accountant Sydney, contact Easy Tax.

Running your own business can be very stressful and extremely time consuming so having some great small business tax tips can be very helpful. In fact sometimes you feel like you’re spending more time bookkeeping and updating accounts for your tax than you are running the actual business itself.

However, leaving your tax responsibilities as an after thought can not only get you in trouble for keeping inadequate records with the ATO, but you may also end up paying far more than you should be. The following tax tips should help you stay in control of your business and keep hold of those much needed profits.

1. Stay Consistent

• We all know you can deduct legitimate work related expenses (ie:  things that cost money and are directly related to your work; such as travel) but after a while you might become lazy at doing the sums..”Oh it was just a quick drive up the road, to buy some milk” or “Oh I forgot to keep the receipt when I bought my client lunch, it doesn’t really matter”. In this frame of mind you’ll eventually lose out. Stay consistent and deduct everything, so you get the income you deserve!

2. Get Savvy

• Lodging the tax return, keeping your accounts in order and doing the sums can be very daunting, but in today’s age it doesn’t have to be. There are tonnes of pre-made spreadsheets, software and websites that can do the hard work for you, as long as you key in the right data you’ll be set. Filing your tax return is easy by using E-tax at www.ato.gov.au.

3. Donate to charity

• What! Give away money? This is not strictly true, if you do the math and find out that you’ve only just fallen in to a higher tax bracket, it may work out cheaper if you make a donation to charity and end up back in the cheaper bracket, thus saving more money on tax than the cost of the donation.

4. Depreciate

• This old accounting trick bewilders many new business start-ups because A) it involves maths and B) the concept seems illegal. Well the math is easy and it isn’t illegal; just do it. When you buy something for your business like a laptop, it has value (the value you bought it at), but after a while it becomes outdated, slow and less efficient costing you money because a much quicker machine would process your work faster. It will eventually become obsolete. Depreciation is simply working out the monetary value of its deterioration. This is done by estimating how long the asset will last (3 years is the standard accounting estimate for brand new laptops. It may become outdated but it will still usually work fine) and then dividing the initial cost by that figure. A common example: You bought a $3,000 laptop so its annual depreciation would be $1,000. This figure is tax deductible.

5. Utilize Your Refund

• This sounds obvious, but utilizing your tax refunds can save you money if done smartly. Many get the money and spend it, put it in the bank or invest it, but you should pay off any personal debt first. A lot of people are happy to constantly let their credit card balance roll over, but you are paying interest on this. Personal loans and credit cards have interest of around 16% to 18%, so if you put your refund in the bank you’d only be making about 6% to 8%. In paying off your personal debt, will save more money by paying much less interest than the interest which could earned in a high-interest account.

Of course there are many other ways to get the best out of your tax, where Easy Tax is more than happy to guide you legitamately.

The key thing above all, is keeping within the boundaries set by the Tax Office   because if you are committing tax fraud/evasion you can be made to pay significant fines/penalties which is not good business.

So for more small business tax tips, look through our site or contact us today.

If you are in business this means the Investment Allowance is for YOU. The Government intends that small business should also benefit from the Economic Stimulus Plan with a Tax Break.

How can the Investment Allowance benefit you? If you purchase new equipment costing $1000 or more between 13th December 2008 and 31st December in 2009 and install it before the end of 2010 then you are entitled to 50% of the total value of an asset as a deduction, plus you can also depreciate the asset at the normal rates.

In effect the government is giving you your cake and you can eat it too! Magic!!

Here’s an example:

Elvis Pelvis owns a small business selling musical instruments. He requires a vehicle which he wishes to use to carry and deliver pianos, guitars and other musical instruments. For advertising purposes Elvis is going to add a big golden guitar on top of the vehicle. The new vehicle costs $50,000 including the cost of the construction of this golden guitar. He can now claim 50% of the purchase price of the vehicle in his tax return in the year that he has purchased the vehicle and has it ready to use.

This has an immediate result of reducing his income tax. Receiving the investment allowance does not stop Elvis from receiving the full amount of depreciation. He gets both.

Elvis also plans to use the vehicle for private purposes but this too does not stop him receiving the full 50% investment allowance.

The investment allowance eligibility criteria:

• The asset must be intended to be used for business in Australia.
• It must be a tangible asset. It can’t be software, licenses, patents or websites. It does not include land, buildings or trading stock.
• The asset must be new.
• For a small business the asset must be worth more than $1,000. For a business which is larger and does not meet the small business criteria the asset must be worth more than $10,000.
• The contract to buy or construct the asset or make additional investment in the asset must be entered into between 13 December 2008 and 31 December 2009 and installed before 31 December 2010.
• The asset must be “held” meaning available to be used. Hire purchase assets are eligible but novated lease assets are not eligible unless they are luxury cars which can be claimed only up to the cap on the luxury cars.
• Leased assets depend on ownership rights. Usually they rest with the leasing company. If you are about to lease equipment or a vehicle point out to the salesman that the terms should be better for you as the leasing company is going to get the investment allowance.
• You are not locked into only one asset you can do it again with multiple assets.
• If you are employed and also have a small business on the side and you use this small business to purchase your equipment then the turnover of your small business must exceed $20,000 in order to be entitled to claim the costs of the investment allowance against other income.
• If it is a motor vehicle you are claiming for make sure you do over 5000 business kms or you won’t get your investment allowance.
• The claim for the investment allowance is available in the year that the asset is installed and ready to be used.

People with rental properties may be disappointed because rental is not considered a business but rather a passive activity so landlords with only a few rental properties would not be eligible for the investment allowance.

The gift of the Investment Allowance is a really amazing opportunity for small business to reduce their tax burden during the economic downturn and invest in new assets for future growth. It is also important to be aware that the ATO will be alert to any schemes to claim the investment allowance where there is not a genuine intention to use the asset for business purposes or where the asset is purchased and quickly resold with the intention merely of making a claim to reduce tax.

Even a new business that has never operated before is entitled to claim the Investment Allowance if it has a genuine intention to operate and use the asset in a business.

If you have been dreaming of equipment that could help your business don’t wait, make haste and buy now. You’ve got the perfect excuse for shopping- you’re doing it for Australia and you will get a tax deduction for it!

For more about the Australian Governments investment allowance, contact Easy Tax today.

Tax benefits for ex patriots can include Living Away From Home Allowances (LAFHA) and a significant change in the Australian tax law that has removed taxation on earnings that you may still accrue outside of Australia.

There are some very specific things that can save expats thousands of dollars, and too often they are not being advised of them.

If you are coming to Australia on a 457 visa you will have to lodge an income tax return.  In fact anybody in Australia who earns more than $A6,000 dollars is required to lodge a tax return.

This applies even though your employer has deducted income tax from your salary.  Most Australian employees receive a small refund but if you have Australian investment income this could mean that you need to pay extra tax to cover this additional income.

The Australian tax year starts on July 1 and ends on June 30.   In July your employer will issue you with a PAYG (Pay As You Go) statement which shows how much income you have earned and what tax has been remitted to the tax office on your behalf.

Armed with your PAYG statements you can go on-line and visit the Australian Taxation Office website (www.ato.gov.au ) to complete a tax return.

Alternatively, you can use the services of a good tax agent. However, unless you are registered with a tax agent you are expected have your tax return lodged by October 31 for the previous period of July 1 to June 30.

What is LAFHA and how can it benefit you?

The best opportunity for an expat is the benefit available to expats who come to Australia on a 457 Visa to obtain “a living away from home allowance” or “LAFHA” from their employers in Australia.

Living away from home allowance is intended to compensate people who have moved from their permanent residence to work and live in another environment.

The Australian Taxation Office allows $206 for food per adult per week.  While this might not seem much the Australian tax system also allows a “reasonable” allowance for rent for those who have relocated.

The question is – what is reasonable?

The Australian Taxation Office does not stipulate what is reasonable but it is an allowance which would provide an equivalent standard to the accommodation the expat would have in his home country.

Provided the employer takes off $42 for the food per week and gives the employee $164 instead of $206 for food, and provides a rental allowance that is “reasonable”, the living away from home allowance is not taxed when given to the employee and importantly costs the employer nothing extra.

This is a real plus if you are coming to Australia. You get the money weekly in your pay packet but it is not taxed.  Unless the amount for rent is “unreasonable” there would be no tax to pay by an employer.  It is a win/win situation.

Many employers are not aware of the benefits which they can legally provide to an employee who has been re-located. If you are an expat on your way to our sunny shores make sure that it is in your contract before you take up employment in Australia.

The Australian Self Assessment tax system and computer monitoring

The Australian Taxation system works under what is called “self assessment”.  Self assessment means you are personally responsible for correctly reporting all your income and any expenses directly related to you earning that income.   That means you have to get it right!

To assist them to trap those not contributing their fair share of income tax the Australian Taxation Office has invested heavily in computer systems which do data checking and cross matching to catch tax cheats who are deliberately manipulating the system for their own ends.

As an example the ATO computers are able to identify taxpayers who understate the interest they have earned in Australia.

Like everybody else, Australians take a keen interest in whatever impacts their income or whatever can help them to legally reduce their tax  and receive a refund.

Among the many things which can cause you to be faced with paying more tax is interest income, dividends received from shares and selling an asset and making a capital gain.

Deductions and a change in the tax law for expats

Deductions, or costs you have paid, which would reduce your tax and help you get a refund, are anything that you pay for that directly assists you to earn your income.

This could include depreciation on your computer, payment for the internet or stationary but they can only be claimed if these costs are directly related to helping you with your work.

This is an area of expertise for Easy Tax.  We are specialists in helping expats understand their tax obligations in Australia.

From July 1 2006 the Australian Government no longer taxes those who are not permanent residents of Australia on investment income earned outside of Australia.

This is wonderful for those expats who leave behind their home and rent it out while they are on a visa working in Australia.  Although they may be taxable in their home country, they don’t have the onerous task of including their non Australian investments in their Australian tax returns.

This is an area few Australian accountants are aware of and Easy Tax can help you here.

If you find yourself in a position where you would like to benefit from LAFHA, and your potential Australian employer does not understand how it can benefit you and also cost him and yourself no extra tax, we can help guide you and your employer.

With the end of the 2011 financial year just passed, its time to get everything in order for your tax return…here are just a few tax tips for you to be thinking about…contact us today for more, and start planning for this year.

1. Sunglasses

Sunglasses are a deductible expense provided you have to work outside and didn’t buy them as simply a fashion accessory. So don’t throw away the receipt for those sunnies.  It could help get you a bigger refund. You can also claim for sunscreen if you are exposed to the sun when you work.

2. Fines

You can’t get a deduction in your tax return for fines.  Even though you may have been working when you copped a parking fine it’s absolutely not deductible.

3. Mobile Phone

Get your employer to provide you with your mobile phone. Provided it’s for work related purposes it’s not subject to fringe benefits tax and it’s deductible for him and not taxable for you.

4. Tools

Tools used for work are deductible for all trades people. If you are an employee you can claim them outright if they cost under $300 but if they cost you more than $300 they have to be depreciated. To depreciate means to claim them over a number of years as they reduce in value. If they wear out and you can’t use them any more then you can claim for the balance that has not yet been depreciated. That is great for increasing your tax refund.

5. Simplified Tax System

If you are a tradie in business for yourself and in STS (the Simplified Tax System) you can “write off” tools up to the value of $1,000 in the year you purchase a tool. If you have tools which are being depreciated you need to keep your tax return from a previous year for your accountant so they know what tools and equipment were on your list of depreciable items from last year so you can continue to claim the depreciation.

6. Protective Clothing

If you are required to purchase boots or a hard hat for work the ATO considers them “Protective Clothing” and essential for you to earn your living so like tools they are deductible.

7. Travel

Have you got a mate who raves about how he went to Europe and claimed the travel in his tax? Well, if you actually go and visit sites where you exchange information with people in your industry in other countries and you actually learn something to help in your work then, the part of the travel that directly relates to you learning or doing business, is deductible in you tax return. Make sure you keep diary notes of the travel details that relate to work.

8. Health Insurance

Have you gone to get your tax return done and found out you have to pay the tax office? Shudder!! Perhaps you did not have health insurance. If your income is above $50,000 and you do not have health insurance you could be faced with payment of a Medicare Surcharge if you do not have health insurance. It makes medical as well as financial sense to get health insurance so you are not lumped with paying the surcharge of 1% on your income.

9. Transport

If you have to transport bulky tools when traveling to work you can claim travel to work and returning home.

10. Receipts

If you make claims in your tax return make sure you have the invoices and receipts to back them up. Missing your receipts but you paid for them with your credit card? The ATO now accepts your credit card statement as proof of payment.

For more tax tips and accounting services, contact Easy Tax today.