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Australia needs to make up for these tax knowledge, can save thousands of Australian dollars a year!

 
[Tax]     21 Apr 2018
Chinese newcomers to Australia may be ignorant: why is it called the fiscal year (Financial Year) from July 1 to June 30 each year? Isn't the year from January 1st to December 31st?

Chinese newcomers to Australia may be ignorant: why is it called the fiscal year (Financial Year) from July 1 to June 30 each year? Isn't the year from January 1st to December 31st?

In fact, in Australia, July 1 to June 30 of the following year, that is, the annual income calculation cycle. So, how much income and tax you have in Australia is not based on the natural year, but on the period of the fiscal year.

As we get closer to July 1, Australia's annual personal tax season is about to begin again.

Australia is a high-welfare and high-tax country, where learning, living and working require a basic knowledge of taxation. How to properly file tax returns to achieve legal tax avoidance and maximize tax rebates, but quite skillful.

The former person-in-charge of the Australian Inland Revenue Department reminded Chinese in Australia to complete the following preparatory work in advance of this tax return window on July 1, so that they will get the maximum tax rebate as soon as possible, or they will have to wait another year!

Australia needs to make up for these tax knowledge, can save thousands of Australian dollars a year!

1. How do freelancers who work from home report their taxes?

If you're not an employee of a business, you're just a freelancer, or you're a homeowner, you can also enjoy rich tax rebates, which are often easily overlooked.

Freelance workers, in fact, have a lot of reasonable expenses to declare tax rebates, such as:

Household lighting, heating, cooling, cleaning costs;

Household office furniture and accessories, depreciation of office equipment (for items exceeding A $300);

Consumables for electronic equipment, such as computers, telephones and Internet charges;

Equipment that costs less than A $300 can be written off immediately, such as furniture, computers and associated hardware and software;

Other expenses, including stationery, partial journal and journal fees, membership fees, tax rebate details such as hosting clients with vouchers or records, and travel expenses, can be found on the official website of the Australian Inland Revenue Service (ATO).

Australia needs to make up for these tax knowledge, can save thousands of Australian dollars a year!

However, ATO reminds you that when filing tax rebates, make sure these items are paid by yourself; must be relevant to your job; and keep your shopping vouchers.

Many businesses, even taking advantage of the "Financial Year" frenzy of big promotions, can take advantage of this opportunity to upgrade their home office supplies.

In other words, any job-related items you now buy can be deducted from your tax returns in 2018, so from the point of view of personal cash flow, The wisest option is to minimize the time between buying and withholding taxes.

Since there are many types of tax rebates, and there are many specific tax returns in various industries, it is best to ask a professional accountant to answer the reimbursement for this part of the expenses.

2. How does the pension pay the highest subsidy?

While Australia's goverment moved on to pension (Superannuation) reform in 2017, preferential policies for low-income families and first-time home buyers remained in place for jobless households. There is, however, a prerequisite for these benefits-make sure your money is deposited in a pension account.

Australia needs to make up for these tax knowledge, can save thousands of Australian dollars a year!


In a family, if one of the spouses earns less than $40000 a year (pre-tax) or does not even have a source of income, he can apply for his pension contribution (super contributions) to waive the tax required of the other half;

On the other hand, high-income parties could opt for a voluntary A $3000 pension fee for their non-working partners to apply for an 18 percent payroll tax credit, which would free up to A $540 a year.

Of course, low-income singles can also earn up to A $500 a year (an extra A $0.5 subsidy for each A $1 deposit) by voluntarily putting part of their money into pension accounts.

Putting money into a pension account not only has these effects, it can also help you greatly reduce the amount of tax you have to pay-

Compared to the 45% tax rate for high-income people, you only have to pay 15% tax on the funds you put into your pension account. At the same time, if you are buying a house in Australia for the first time, you can withdraw up to A $30000 (per natural year) or A $15000 (per fiscal year) from July 1, 2018.

Australia needs to make up for these tax knowledge, can save thousands of Australian dollars a year!

3, when the tax returns these tax waivers, remember to fill in!

When making personal tax returns, there are four tax relief items (Deductions) should remember to fill out:

*-Bank interest income is credited to (Interest Deductions)-if you have bank interest income (normally) and the bank charges an account management fee on the interest-generating account, it can be used as a credit in the case of individual tax rebates;

*-dividend credit (Interest Deductions)-credit for investment dividends to similar bank interest;

: gift and donation credits to (Interest Deductions)-if you have contributed more than A $2 to ATO accredited charitable organizations or registered political parties in the fiscal year, the donation can be considered a credit for individual tax rebates;

*-tax lawyer / Accountants Service fee Credit (Interest Deductions)-if you have paid for services in fiscal year 2016 / 17 by hiring a tax lawyer or accountant, you will be able to do so in FY2017 / 18. It is important to note that service charges paid after July of that year can only be deducted in the following fiscal year when the individual tax rebate.

Here to remind you, the above fees, must be delivered before July 1, so as not to wait for another year when the tax rebate!


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