FAQS

There are no changes to tax brackets for the 2024 tax year.  The new Stage 3 tax cuts involve changes to the tax brackets and will apply from 1 July 2024. The tax brackets applying in the 2024 tax year and the new tax brackets applying from 1 July 2024 will be:

Existing tax brackets for the 2024 tax year:

• Earn up to $18,200 – pay no tax
• Pay a 19 per cent tax rate on each dollar earned between $18,201-$45,000
• Pay a 32.5 per cent tax rate on each dollar earned between $45,001-$120,000
• Pay a 37 per cent tax rate on each dollar earned between $120,001-$180,000
• Pay a 45 per cent tax rate on each dollar earned above $180,000

New Tax brackets applying from 1 July 2024:

• Earn up to $18,200 – pay no tax
• Pay a 16 per cent tax rate on each dollar earned between $18,201-$45,000
• Pay a 30 per cent tax rate on each dollar earned between $45,001-$135,000
• Pay a 37 per cent tax rate on each dollar earned between $135,001-$190,000
• Pay a 45 per cent tax rate on each dollar earned above $190,000

There is also the Medicare Levy which is an additional amount applying each year added to the tax you pay on your taxable income.  Find out about the Medicare levy and if you are eligible for an exemption or reduction by visiting the ATO website here.

There is also the Medicare levy surcharge (MLS) which is an amount of tax you may need to pay in addition to the Medicare levy if for any period during the income year you, your spouse, or any of your dependants did not have an appropriate level of private patient hospital cover and your income for MLS purposes (including your spouse’s income if relevant) is more than the applicable surcharge threshold.  The MLS applies if your annual income is over $93,000 as a single (or $186,000 as a single parent/couple/family) and you or any of your dependants don’t hold an appropriate level of hospital cover.  It starts at 1% and increases (up to 1.5%) depending on your annual income. The family income threshold for single parents, couples and families is increased by $1,500 for each MLS dependant child after the first child.  Find out more about the MLS by visiting the ATO website here.

For the 2024 tax year, the Low Income Tax Offset is valued at $700 on low incomes up to $37,500. The offset is withdrawn at the rate of 5% of income above $37,500 up to $45,000, where it is reduced to $325 and then withdrawn at the rate of 1.5% of income above $45,000. For incomes above $66,666 there is no offset.  For more information, visit the ATO website here.

Please read our history area. We are the pioneers of fast tax refunds. We coined many phrases such as Cash for tax, same day tax refunds and of course our main slogan tax refunds on the spot! TaxTips started out some 33 years ago and over the years have developed a sophisticated internal control system. Such a system ensures our clients are offered most timely tax returns and tax refunds services with minimum complaints. We can prepare your tax return and due to our complete system are able to accurately estimate your tax refund. We can then pay your tax refund on the spot after we deduct our fees. We are Australia’s largest and fastest tax refunds specialist.

Others that claim to be the leaders in instant tax refunds services are misleading you. We challenge any false pretender to confront TaxTips now and we shall prove we are the largest fast tax refunds provider in Australia and the genuine founder of Tax refunds on the spot!

For the 2024 tax year, work-from-home expenses can be calculated using one of the following methods:

Fixed Rate Method: of 67 cents per hour, this method now includes internet, telephone, stationery, and computer consumables, previously claimed separately. Cleaning expenses and depreciation on office furniture are now claimed separately. Starting March 1, 2023, actual hours worked from home must be recorded, replacing the previous four-week representative diary. Accepted records by the ATO include timesheets, rosters, logs of time spent accessing systems, time-tracking apps, or a diary.

Actual Costs Method: This method remains unchanged and can result in a higher tax deduction, but it has not been popular due to the extensive record-keeping required for every expense involved.

The ATO will generally deny an expense claim against your tax return unless you have a receipt to support your claim. If you lose your receipt, try to obtain a signed copy. It is a good idea to pay all your work expenses using your credit card and attaching your receipts to the monthly statement. Keep all this in an Arch Lever folder and bring it along to your tax agent when you are due to lodge your tax returns. Note credit card statements are not sufficient evidence to support a tax deduction against your income. So always attach your receipts to your monthly statements to keep them safe. Doing so will almost always result in getting higher tax refunds when you lodge your tax returns.

Be very careful accepting suggestions from tax accountants and tax preparers to make outrageous claims without supporting expense receipts. The ATO will eventually catch up with these dodgy accountants and it is you that will end up paying it all back to the ATO plus huge penalties and interest.

You are only protected from interest and penalties due to a genuine mistake but not from choosing a fraudulent tax agent who may give you the wrong advice.

The general rule is if you incurred an expense for the purpose of earning your income, then you will most likely be allowed to claim that expense in your tax return and get a higher tax refund. However, in some cases your expense may not be allowed in full where part of that expense is connected to a private use component. Example; you buy a computer you use for work purposes at home by logging onto your work email, or other work-related internet searches and you only use your computer about 50% of the time for work purposes. In this case, you can only claim 50% depreciation on your computer. The private use component you cannot claim in your tax return. If the ATO assesses you to only have used your computer for say 25% and you claimed 50%, then you will be asked to repay part of your tax refund plus penalties.

You can also claim running expenses relating to the use of facilities within your home. These expenses are generally considered private and domestic expenses. You can claim a deduction for additional running expenses you incur as a direct result of working from home.

Additional running expenses may include:

• electricity or gas (energy expenses) for heating or cooling and lighting
• home and mobile internet or data expenses
• mobile and home phone expenses
• stationery and office supplies

Claiming the above expenses is covered under What is involved in the work from home record keeping requirements?

You can also separately claim a deduction for the following additional expenses:

• the decline in value of depreciating assets you use for work – for example
• office furniture such as chairs and desks
• equipment such as computers, laptops and software
• the repairs and maintenance to depreciating assets.

Remember when you lodge your tax returns think of TaxTips who gave you this tax tip. If you are due to receive a Tax Refund then ask for an instant tax return and an instant tax refund paid to you as an instant tax cheque today.

As more people are working from home post-Covid, the ATO has revised the methods of calculation of work from home expenses and has limits on what can be claimed.  For the 2024 tax year, work from home expenses can be calculated using one of the following methods:

1. Fixed rate method which allows 67 per work hour covering internet, telephone, stationery and computer consumables which were previously claimed separately.  Cleaning expenses and depreciation on office equipment and furniture are no longer included in the fixed rate method and can be claimed separately.  From 1 March 2023, you will need to record actual hours worked from home where previously a four-week representative diary was sufficient.  Actual hours worked records accepted by the ATO include timesheets, rosters, logs of time spent accessing systems, time-tracking apps or a diary.
2. Actual costs method which remains unchanged but not popular in the past because of the record keeping of every expense involved.

Taxpayers claiming work from home allowances must first make sure they are working from home to fulfil employment duties and not just carrying out minimal tasks, such as occasionally checking emails or taking calls. They must actually incur additional expenses as a result of working from home.

For more information, visit the ATO website here.

You have from 1 July to 31 October to lodge your tax returns. You may be entitled to an extension of time to lodge through your registered tax accountant. If you have a tax liability with the ATO you should try to lodge your tax return within these dates to avoid a potential penalty. If you are due a tax refund, you may not be penalised for lodging your tax return late unless you were asked by the ATO to lodge your tax returns on an earlier date.

In our experience at TaxTips, we find that over 95% of taxpayers that lodge their tax return are due for a tax refund. If you have not received a letter from the ATO warning you to lodge your tax return for any of the years you have not yet lodged, then hurry. If you lodge all your returns now and are due a tax refund in 95% of cases you may avoid penalty. Call TaxTips now for an appointment and ask for an instant tax refund. That’s right, we can prepare your tax return and we can pay your tax refund on the spot.

The advertised length of time is up to 14 days but in some cases it could take longer. However, if you need your tax refund paid to you the same day, call Tax Tips today. That’s right, we have tax preparers that can complete your tax returns and on the same day pay your tax refunds as an instant tax cheque.

All employers are now required to report payment to the ATO via the single touch payroll phase 2 guide lines. Employees are now able to locate their payment summary on MyGov or via a registered tax agent. When your employer finalises your tax and super details it will show the status Tax ready. You can use the information in your income statement when it is Tax ready.

If your income statement information doesn’t show as tax ready, you will see a red box in ATO online services that says Not tax ready. You will need to speak to your employer to find out when they will finalise your statement. If your employer is unable to make your income statement tax ready, they will need to provide you with a payment summary. If your employer is no longer in business you will need to estimate your income and withholding details and include this in your return.

If you choose to lodge your tax return before your income statement shows tax ready, you will need to review your information and any amounts that are available through pre-fill. You will need to confirm the information is correct before you submit your tax return.

Remember, if you choose to use information from your income statement before it is tax ready to lodge your tax return:

• your employer may finalise your income statement with different amounts

• you may need to amend your tax return and additional tax may be payable.

Some employers may have not transitioned to the new system due to lack of knowledge of this requirement or due to poor internal control systems. A good idea is to keep your last pay slip which can show probably all the information your tax accountant needs to know. In some cases, the group certificate information will display on the tax agent’s portal. You may also obtain a statutory declaration and lodge your tax returns without the group certificate.

For over 10 years now TaxTips has provided various bodies in the ATO with ideas on how to centralise the issuing of group certificates. It is our idea that group certificates should only be internet based and all controlled by the ATO. Employers would download ATO software that is used to make employment payments and a copy of all transactions is then automatically sent to the ATO site to update taxable income. At the end of the financial year when lodging your tax returns comes about, accountants and tax preparers can log onto the tax agents portal and have instant income tax information that is accurate. There would be no need to issue paper to anybody. It would also greatly minimise group certificate fraud.

Remember when you lodge your tax returns think of TaxTips who gave you this tax tip. If you are due to receive a Tax Refund then ask for an instant tax return and an instant tax refund paid into your account or to you as an instant tax cheque.

You are required by law to keep your receipts for a period up to 5 years from the date you lodge your tax return. We suggest you buy an A4 envelope and mark it with the year of tax. Place all your receipts in it and store it away in a safe place. In 5 years time you can toss it in the bin.

When you lodge your tax return with the ATO, you will receive a notice of assessment (NOA). It will indicate how much tax you owe on your taxable income or how much tax refund you received (a refund cheque is usually attached). Your notice of assessment is an important document so keep it safe.

If you lodge tax return at TaxTips and got your tax refund on the spot, you will have received your refund cheque from TaxTips on the day you lodged. TaxTips will then wait the usual 14 days to receive your tax refund from the ATO and bank it. You will receive in the post a TaxTips cheque along with your notice of assessment if a balance is still owing to you.

TaxTips retains a copy of your notice of assessment for up to 5 years. So if you lose your NOA please call your TaxTips branch and we can either mail, email, or fax a copy to you. No problems!

TaxTips specialises in providing fast tax returns services and fast tax refunds. At TaxTips we have professional accountants and tax agent preparers that complete 100’s of tax returns each day. Tax returns are then lodged on the spot and we can pay instant tax refunds the same day as a cash cheque. Our instant tax cheques are like a tax refund on the spot which we have aptly called a TROTS which circumvents the requirement to wait for your tax refund to be received from the ATO within 14 days or longer. That’s right, an instant tax return and instant tax refund without the 14 day waiting period.

First you will need a receipt to confirm you made the donation. The receipt should contain a registration number showing the charitable institution is approved and donations to it are tax deductible.

You may qualify for some exemption on interest earned on deposits under certain government schemes designed to help you save for your first house – see headings further below. Otherwise, both interest earned on deposits and dividends received on shares must be included as taxable income in your tax return and this will have an effect of reducing any tax refund you may be due. This is true for individual taxpayers. However, for share traders and business tax returns you will need to contact one of our many TaxTips tax professionals to see if you qualify as a share trader or share investor. Each has different tax implications.

As an individual taxpayer, if your total income for the year is under $6,001 which includes any interest and dividends earned, then you will not be required to pay tax if you are a resident taxpayer. Taxable Income earned between $6,001 to $37,000 is only taxed at 15% and any resultant tax is reduced by the Low Income Tax Offset (LITO) and increased by any applicable Medicare Levy.

TaxTips will work out your tax position taking into consideration all information you provide and available tax offsets when providing you with an estimate of your tax refund or any tax payable.

In Australia, as an individual, we are generally taxed by the ATO on:

• income we receive from employment;
• investment income from interest earned in a bank account or Dividends received from shares you own;
• You may also be subject to Capital Gains Tax (CGT) when you sell a capital asset such as a house or other major asset including shares if you are classified as a share investor.

As a general rule if the Gift is not covered in the above situations then it will not be subject to income tax and does not need to be included in your tax return.

The ATO will ask the question (NEXUS), is there a direct link between the gift and your employment, or in the case of the property the gift and the income stream of rent.

Examples of a gift being a direct link to employment

• If you get a gift of a car from your employer, then the ATO will probably consider there is a sufficient NEXUS between you receiving the gift and your Job;
• Making a gift payment continuously where it could be interpreted as an income stream. Example; getting a rental discount from your landlord and then making cash payments as gifts each week or month to your landlord;

Examples of gifts not being a taxable item to the receiver of the gift

•  your Godfather gives you a car for your Birthday then it is not taxable unless you work for your Godfather earning taxable income
• You inherit money and maybe even used some of your own money as a gift paid to your son to buy something like a car;
• You won some prize money and want to give some to your mum to buy a house