FAQs
Answers to commonly asked questions.
Templates and tools.
FAQs
Do I have to pay tax on inheritance?
No. You do not have to pay tax on your inheritance, unless your solicitor states that some of it is taxable. However, once you have invested your inheritance, any income earned (ie, bank interest or share dividends) is taxable.
I have a HECS/HELP debt and my income for the year was $30,000. Do I have to make a HECS/HELP repayment?
No, you are not liable for a repayment unless your income is over the threshold of $48,361 (2022/23) or $51,550 (2023/24). If your employer has been withholding extra tax for HECS/HELP, you will get them all back at tax time.
Are you able to prepare my tax return if I have a missing PAYG Payment Summary or Group Certificate?
Yes, in most cases we are able to access your information via the Tax Agent Portal. You could also request a copy from your employer. If you fail to obtain a copy, you could also sign a Statutory Declaration but you have to be able estimate your wages.
My Father Died. Do i need to complete a tax return for him?
It is necessary to complete a tax return to date of death if a return has been lodged in past years. This return, marked final, must show all income received to the date of death.
Do I have to declare my Centrelink benefits (Newstart, Youth Allowance etc)?
Most Centrelink benefits are taxable, except Family Tax Benefits and Exempt Payments. Taxable payments should be declared on your tax return, even if there was no tax withheld.
Can I claim my TAFE or Uni related expenses?
You can only claim self education expenses if there was a direct connection between your course and your current employment. If the course was undertaken in order to secure a new job, then it is not deductible.
Can I claim my children's education expenses?
No, the Education Tax Refund has been replaced by the Schoolkids Bonus and is paid by Centrelink.
I use my car to travel to work, can I claim my fuel costs?
You can only claim car expenses for work-related travel. Driving from home to work and back is not deductible unless you were carrying heavy and bulky tools and there was no secured storage at work.
How long do I have to keep my tax receipts?
You must keep your tax records for 5 years from the date of lodgement of your tax return.
Can I have the fee deducted from my tax refund?
Yes, we can deduct the tax preparation fee from your tax refund.
Can all the interest from our joint accounts be declared in my partner’s tax return?
No. All income must be declared by each recipient on the same basis as the accounts are held. Interest from a joint account must be split 50/50. You cannot declare it all on your partner’s tax return and doing so could lead to an ATO audit.
My bank interest is only $10. Does this amount have to be declared?
You must declare all interest from all sources no matter how small the amount is.
I have shares and received franked dividends this year but have no other income. Do I have to lodge a tax return to get the franking credits refunded to me?
No, you can complete the Refund of Franking Credits for Individuals form which can be lodged by telephone or mailed to the ATO.
I won Money on a game show this year, is this taxable income?
If your prize was from a one-off appearance then it would not be taxable. However, if you are a professional contestant it will be taxable. If someone appears as a regular contestant on these shows then they could be considered to be a professional and the prize would be assessable income.
I have received $25,000 for an interview on a current affair show. Is this taxable?
Yes this payment is taxable. You have been paid for providing a service.
My 14 year old daughter has received $600 from a trust distribution. Does she have to lodge a tax return?
Since the 2012 income year, even if this is her only income, she will have to lodge a return. Prior to the 2012 income year a minor could have earned up to $3,333 from investments before any tax would be payable on that income. However, from 01 July 2011 minors have not been eligible to access the low income rebate for unearned income (such as interest, dividends, rent, royalties, trust distributions etc). This means that a minor who earns over $416 in unearned income must lodge an income tax return.
Is there a limit on how much I can claim as a tax deduction each year?
There is no limit on the amount claimed each year, provided the expenses are necessarily incurred in earning your income. The expenditure must be work related and you may need receipts to substantiate the expenditure.
I have to buy tools and equipment for my job. What can I claim and how much?
You are able to claim expenditure incurred in replacing, insuring and repairing tools of trade that you use for earning your income. If the cost of any item is more than $300 then it will have to be depreciated (i.e. claimed over its effective life).
My job requires me to keep my knowledge up to date and I buy books and journals. Can I claim them all?
If technical books, trade books or journals are necessary to fulfil your job function efficiently then the cost of their purchase is tax deductible.
I have had to pay for child care during the year. Is this claimable on my tax return?
Child care expenses are not claimable as a tax deduction. Eligible taxpayers may be able to claim the Child Care Tax Rebate (CCTR) through the Family Assistance Office.
I am expected to maintain a well groomed appearance. Can I claim these expenses?
Expenditure on personal grooming and haircuts are generally not deductible. There are exceptions for some taxpayers involved in the performing arts field.
Can i invest in Cryptocurrency without paying taxes?
Unfortunately, not. If you buy cryptocurrency as an investment, Capital Gains Tax (CGT) will apply. If you buy and sell cryptocurrency as a trader, income tax will be charged.
This applies regardless of where in the world the cryptocurrency is bought and sold and regardless of the degree of anonymity associated with the sale
Australian Residence Tax File Number Application
You can apply for your TFN at a participating Australia Post retail outlet if you're able to attend an interview. There is no fee for lodging your TFN application.
If you're an Australian resident the easiest way to apply for a TFN is to:
- Complete the online form
- Print the summary, which will include your application reference number, and take it to your Australia Post interview.
- Attend an interview at a participating Australia Post outlet within 30 days of completing your online form. You'll need to take your printed summary and proof of identity documents to the interview.
Next step:
Protect yourself against phone scams
The ATO is warning the public to be aware of a phone scam that is again circulating where fraudsters are intimidating people into paying a fake tax debt over the phone.
The aggressive scam attempts to force people to pay the fake tax debt over the phone by threatening arrest if they don’t comply.
The ATO makes thousands of outbound calls to taxpayers a week, but would never contact taxpayers about a debt in this threatening manner.
We urge you to be alert to these types of scams and never send money or give your financial details to someone you don’t know and trust.
Generally the ATO would send an SMS or letter to remind you that a payment was due. If they don't get a response from this they would then call you to discuss payment.
If you receive a call from the ATO and are concerned please call us immediately to discuss the matter on (02) 4578-6088.