Tax season is well and truly in full swing at Crest Accounting! With this in mind, it is time to organise those end of year records so that we can complete your 2018 Income Tax Return.
There have been some changes to legislation over the past 12 months that may impact you, and your ability to claim certain deductions. Here is a quick summary of some of the changes we think may be important to you:
Personal Super Contributions
For the year ended 30 June 2018 and onwards, the ability to claim a tax deduction for personal contributions you make to your super fund has been extended to everyone (as opposed to only those who were self-employed). There are still some limitations, including contribution caps and age restrictions, however the average person will now be able to contribute to super at their will, and claim a tax deduction for these amounts. As with anything, there is some paperwork to be completed in order to claim a deduction, but your financial adviser or accountant will be able to guide you with this. It is best to act as quickly as some events within your super fund may impose restrictions on how much you can claim. It would also be beneficial to have a chat with us as to whether this is something you should look at in the future.
Travel for Work
There have been some recent changes (for the better) in regards to the situations in which you can claim a tax deduction for travel related to your work. One noteworthy change is the introduction of the deductibility of “co-existing work locations travel”. In most situations this will eventuate where an employee is required to work in more than one location, and travel to the secondary location will now be deductible. Employees are still restricted to either the cents per kilometre method (up to 5,000km), or the log book method, and careful consideration needs to be given to whether these rules apply and if you are eligible.
Rental Property Changes
from 1 July 2017, some new restrictions have been placed on the deductibility of travel and depreciation expenses in relation to rental properties. Travel expenses in relation to residential rental properties are no longer deductible, regardless of when the property was acquired. In prior years a person has been able to claim expenses over the year for when they travelled to the property to inspect it, this is no longer the case. Additionally, any depreciating assets acquired (whether as part of a property or separately) after 9 May 2017 where the assets have been “previously used” (second hand or acquired with a property that was not new) are no longer able to have their depreciation claimed as a tax deduction. These rules can become quite complex when trying to separate assets into deductible and not, so it is best to speak to one of our accountants here at Crest to determine the best approach moving forward.
At Crest, our focus is to ensure your tax return remains compliant, whilst working hard to ensure the best tax position for you, your family and your business.
Call our office on (02) 4933 3466 to book an appointment today.