Consumer News
Did you know you can claim a 20% tax offset for medical expenses?
Net medical expenses are the medical expenses you have paid, minus any refunds of these expenses which you or any other person has received, or are entitled to receive, from Medicare and/or a private health insurer. Many taxpayers are unaware that you can claim a tax offset of 20% (that is, 20 cents in the dollar) of your net medical expenses over $2,000. There is no upper limit on the amount you can claim.
What you need to know about Reverse Mortgages and No Negative Equity Guarantees
A reverse mortgage is currently the most common equity release product in Australia for retirees. With a reverse mortgage, you use the equity in your home as security to borrow money. This has become an increasingly popular trend since the global financial crisis, as retirees seek to supplement their incomes due to a drop in returns from share investments. With reverse mortgages you can take the loan as a lump sum, in a regular income stream, as a line of credit, or as a combination of these options. The amount you can borrow is also linked to your age (that is, the older you are, the more you can borrow).
Changes to NSW retail leases legislation
The Retail Leases Act 1994, is the primary legislation which governs retail leasing in NSW. In January 2011 the NSW Government released a draft of the Retail Lease Amendment Bill 2011 in a bid to implement further amendments to the Act. It is highly important that all landlords and tenants of retail premises are aware of the impacts of these potential changes to the current retail leases legislation.
Have you considered managing your own superannuation?
Since the Global Financial crisis, many people are becoming more and more concerned with the performance of their superannuation fund. As a direct result of this concern many people are considering taking more control over the trusteeship and the management of their superannuation and establishing a Self Managed Superannuation Fund (SMSF.)
Changes to the Education Tax Refund
The Education Tax Refund (ETR) aims to help with the cost of educating primary and secondary school children. Eligible parents, carers, legal guardians and independent students are able to get money back on education expenses. The Government has recently changed the ETR to include school-approved uniforms, purchased from 1 July 2011; these items of clothing including hats, footwear and sports uniforms approved by a school as its uniform may be claimed from 1 July 2012.
Can you claim a deduction for the decline in value of your assets?
The decline in value of a depreciating asset is worked out on the basis of its effective life. Generally, the effective life of a depreciating asset is how long it can be used for a taxable purpose, or the purpose of producing exempt income or non-assessable non-exempt income:
Think Twice Before Going Guarantor
Has a family member or friend asked you to be a ‘co-borrower’ or guarantee a loan for them? Before you say yes, think carefully – you could lose not only your money, but valuable assets such as your house or car.
WARNING - Scammers offering carbon tax compensation payments
SCAMwatch is warning Australians to be alert to scam calls offering to pay carbon tax compensation into your bank account or asking survey questions about the carbon tax. It is important to be aware of these scammers and not to give any of your personal information out.
Voluntary Disclosure for Honest Mistakes
If you have made an error relating to your tax obligations, it can be dealt with by making a voluntary disclosure. Voluntary disclosures are free choices made on the part of an individual or organisation to provide information to the ATO on any information that relates to your tax obligations. These disclosures are generally in relation to any mistake, error or omission (intentional or accidental) that has occurred in providing tax related information to the ATO.
Your 2011 Income Tax Return rates and changes
It’s time to start planning. Generally speaking, anyone who earns over the tax free threshold during the course of a financial year, 1 July - 30 June, is required to submit an individual tax return to the Australian Tax Office. You, as an individual, must pay tax to the Government in proportion to your earnings for the financial year period. In addition to the marginal tax income rates that are used to calculate the base amount of tax payable, taxpayers may be eligible to claim deductions or offsets that may further reduce the amount of tax payable. The recent Budget outlined changes regarding the Family Tax Benefit and the Education Tax Refund which have now come into play as of 1 July 2011; not to mention the Flood Levy which will need to be paid in this year’s tax return.
