New HELP Repayment schedules

From 1st of July 2019 a new payment minimum of 1% at income of $45,881 and a maximum threshold of 10% at $134,573

For comparison here are this years HELP rates:

2018–19 repayment income thresholds and rates for HELP, SSL, ABSTUDY SSL and TSL
Repayment income (RI*) Repayment rate

Below $51,957

Nil

$51,957 – $57,729

2.0%

$57,730 – $64,306

4.0%

$64,307 – $70,881

4.5%

$70,882 – $74,607

5.0%

$74,608 – $80,197

5.5%

$80,198 – $86,855

6.0%

$86,856 – $91,425

6.5%

$91,426 – $100,613

7.0%

$100,614 – $107,213

7.5%

$107,214 and above

8.0%

 

 

The Age: More on Tax & Bitcoin Scam

From today’s age: Don’t be afraid to hang up.

Victorians have been warned against a cryptocurrency scam after fraudsters posing as debt collectors convinced victims to deposit more than $50,000 into a bitcoin ATM.

The victims, who are all from the eastern suburbs and believed to be migrants, were told they would be arrested if the amount was not paid.

Police said the four victims were told to take money from their bank accounts and go to Braybrook where a bitcoin ATM, one of a few in Melbourne, is located.

The victims were then given a code and instructed to deposit their money into a certain bitcoin account.

There are a few variations of the scam, where the fraudsters tell the victim they have spoken to their accountant or to federal police who have confirmed the victim’s debt, police said.

Maribyrnong crime investigation unit acting Detective Sergeant Katherine Lehpamer said she feared there may be many more victims and urged anyone affected to contact police.

“We believe that there are a number of victims out there who have not reported the matter for one reason or another, they may be here on visas or they are not aware that authorities would never tell them to deposit money into an ATM,” she said.

“It does appear that the scammers are targeting a certain group of people who they can convince that their immigration status is in jeopardy.

“Anyone getting a call along these lines should make inquiries with the relevant authority before paying any money or giving any banking or personal details over the phone.”

There are more than 20 bitcoin ATMS scattered across Melbourne, including in St Kilda, Richmond, Prahan, CBD and Maribyrnong.

Anyone who has information about this matter can contact Crime Stoppers on 1800 333 000 or file a confidential report at crimestoppersvic.com.au

For information on the latest scams visit scamwatch.com.au

 

 

Crypto Record Keeping requirements

The Australian Tax Office (ATO) requires the following records to be kept in relation to cryptocurrencies.

  • the date of the transactions
  • the value of the cryptocurrency in Australian dollars at the time of the transaction (which can be taken from a reputable online exchange)
  • what the transaction was for and who the other party was (even if it’s just their cryptocurrency address).

The sorts of records you should keep include:

  • receipts of purchase or transfer of cryptocurrency
  • exchange records
  • records of agent, accountant and legal costs
  • digital wallet records and keys
  • software costs related to managing your tax affairs

Have a short-term rental? The ATO may know

According to the ATO their are approximately 190,000 properties available for short term rentals such as Airbnb, using their “data matching” capabilities they shall be querying any understated or omitted income from owners.

Therefore, it is vital that you have up to date and comprehensive record keeping so that all income and deductions can be included and justified in your tax return.

to discuss further make an appointment with us on +613 9846 6542 or email info@townshendassociates.com

 

Bitcoin, cryptos and your taxes

The central premise to be “outside of the central banking monetary system” and the “way of the future”. If you own or are thinking to own cryptocurrencies, you should not be confused with that those that disagree with Bitcoin being money and those people not understanding it. They do, especially the Australian Taxation Office (ATO)

Buying and selling Bitcoin or any other cryptocurrency may attract a capital gain event which is reportable on your tax return.

A capital gain is the difference between the purchase and sale price and a capital gain event with cryptocurrencies can be the following:

  • sell or gift cryptocurrency;
  • trade or exchange cryptocurrency (including the exchange of different currencies)
  • convert cryptocurrency to fiat currency such as AUD
  • use cryptocurrency to obtain goods or services (source: NTAA 2018)

However,  there are some provisions which may exempt a capital gain event.

To make an appointment with us please call or email our offices +613 9846 6542 or info@townshendassociates.com

 

 

Lodged your tax return. How long will it take?

So you have lodged your tax return and expecting a refund, now when do you receive it?

Typically, if you have lodged your return electronically with your account details it should take around 12 business days (so exclude weekends), however it may take longer. Apart from any arrangements you may have with us the ATO gives the following events which may delay the assessment of your tax return:

  • The ATO identifies omitted income
  • They need to cross-check data with other government agencies, including Centrelink and Child Support
  • You have a debt obligation with the ATO
  • You are insolvent
  • Your tax file number (TFN) has been compromised
  • The ATO queries information provided in the return.

Its important that if you think any of the above applies to you, that you ensure you discuss this with us when completing your tax return.

 

 

 

Income tax rates for Financial Year 2018-2019

Passed Personal Income Tax Rates from ATO

Taxable income Tax on this income
0 – $18,200 Nil
$18,201 – $37,000 19c for each $1 over $18,200
$37,001 – $90,000 $3,572 plus 32.5c for each $1 over $37,000
$90,001 – $180,000 $20,797 plus 37c for each $1 over $90,000
$180,001 and over $54,097 plus 45c for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

The above rates include changes announced in the 2018-19 Federal Budget.

Fresh starts, tax, deductions and audits.

If you think you the end of financial year is all about complying with the taxman you are missing the best time to assess your fiscal health. If you haven’t done this before consider the following:

  1. Review: When you are finding all those receipts and completing your logbooks for your tax return, go through each months banks statements and start categorising your expenses e.g. food, fuel, car repayments etc.
  2. Assess: Did you spend too much? Do you really need those pair of shoes? What do my savings look like? What big ticket items are coming up? What does your financial health look like.
  3. Act: Put in a place a budget, set goals and don’t give up if you fail. If you need to seek a financial adviser take your time and have a clear direction of what you want to achieve more importantly what you want from that relationship.

When it comes to claim deductions it is more important to keep to your record keeping obligations. Ensure that what you are claiming is true and correct and that you have clearly communicated it within your submitted documents. Once you have received your tax return, you must read, check and ensure that the information is true and correct.

Record keeping diagram ATO

Much has been in the media about work related expenses (including car expenses) and the ATO’s ability to data match with other databases e.g. State Revenue Office. We have always believed that there should always be an expectation that you will be audited.

For peace of mind, we are offering Tax Audit Insurance for all client types and is your policy (portable). It extends to some other government agencies and is not just limited to accounting fees. (When making your next appointment ensure that you have discussed whether this is right for you).

It also pays to be proactive and discuss your financial year with us before its over to tax plan and become fiscally fitter.

If you have found this information of interest or wish to discuss your personal situation please contact us to make an appointment.

General Advice Warning

The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on the author’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.