A list of FAQ for Nurses that want to no more than the tax basics for this year preparing their tax 2019.
We offer 2 ways to do your tax remotely that is by Online tax or by using our Skype video service which still gets you in front of one of our highly specialised tax consultants.
Yes, we do tax preparation and lodgment for any of your family members or friends that you refer to our tax practice.
Your spouse or partner does not need to attend the tax interview but we may need to know about their taxable income for joint Medicare levy surcharge testing purposes.
For Nurses a deduction is ONLY normally allowable if an expense meets ALL of the following tests: -
1. the expense was actually “incurred” before the end of the income year;
2. the expense meets the deductibility test –that is, it was incurred in deriving the taxpayer’s current income and it was not private, domestic or capital in nature and;
3. the taxpayer can satisfy the stringent substantiation rules –that is, the taxpayer has written evidence of the expense incurred (if required).
Yes, we do get Pre-fill information and it is usually available by mid–August.
We received information from the ATO about:
1.Your salary information from your employer
2.Private health funds
2.Financial institutions (interest income)
2.Companies (dividend income)
If you complete your tax with us before the middle of august you may need to supply us with the information.
As a rule, a penalty will not be applied to a late-lodged tax return, if the lodgment results in either a refund or a nil result. Its best to keep up to date the ATO never forgets.
Yes, we do tax preparation and lodgment of young adult kids at a discount whilst they are training throughout their new career.
If Nurses have an education debt they pay back the HELP debt through the tax system once you earn above the compulsory repayment threshold. The compulsory repayment threshold is different each year. The compulsory repayment threshold for the 2018-19 income year is $51,957.
We will go through with you in plain English how we arrived at your tax refund result. .
A Nurses tax interview takes about15-20 minutes to complete. A Skype tax takes a little longer. Our online systems can be completed in about 25-30 Mins.
Your tax refund is paid directly into your nominated bank account. You should receive it within 14 days subject to ATO processing. If you don’t get it on time please call us.
No we don’t deduct fees we normally get paid via your Plastic card at the time. This means you will get your refund faster.
Yes, we have standard tax checklists so that nothing is missed during the interview.
Nurses have severally help systems on line to assist you as well as tax checklists. Our Premium Online tax system has over 150 tax claims.
This service is designed for Nurses who can’t make a physical appointment. A video conference for your tax breaks down the time and location barriers.
Yes, we have a system of checklist that we go through with our face to face tax interviews so we don’t miss out on anything. Our online systems have the same tax checklists built into them.
We only claim what can be justified legally regarding tax deductions that are directly related to earning your assessable income.
The best way to get you notice of assessment from the ATO is to open up a MyGov account and you can print it when you need to.
Its best that nurses keep good records of all tax deductions thta are to be claimed this financial year using a speadsheet or even better a phone app that can photograph thos important nurse tax deductions.A good app should be able to print out your tax agent a PDF report summary at the end of the year.
Our average a nurse tax refund last year for Nurses was $957 included standard tax return criteria but was also influenced by Nurses with rental properties.
For every capital gains tax (CGT) event that happens to your assets during the year, you need to work out your capital gain or loss. If you have both capital gains and capital losses, you also have to work out your net capital gain or net capital loss for the year.
Capital losses are used to offset against future capital gains that a taxpayer might have. If your reduced cost base is greater than the capital proceeds you received (or are entitled to receive) for your asset – that is, you've sold an asset for less than what it cost you – you have usually made a capital loss. The difference between the two amounts is your capital loss.
If you have held an asset for more than one year>365 days and sell and make a profit you will need to report a capital gains event. Individuals can generally discount a capital gain by 50% if they hold the asset for more than one year. For most CGT events, your capital gain is the difference between your capital proceeds and the cost base of your CGT asset. (The cost base of a CGT asset is largely what you paid for it, together with some other costs associated with acquiring, holding and disposing of it.)
Yes Nurses if you have a managed fund and the fund manager makes a capital gain on your behalf as a unitholder you will need to report this amount to the ATO on your tax.
You will have to pay full tax at your marginal rate of tax with no discount to be applied
All assets you’ve acquired before 20 September 1985 are exempt from CGT. Most personal assets are exempt from CGT, including your home, car and personal use assets such as furniture. After this date CGT may be payable.
Exemptions include capital gains or losses for: your main residence (but there are exceptions) your car (we define a car as a motor vehicle designed to carry a load of less than one tonne and fewer than nine passengers), motorcycle or similar vehicle personal use items acquired for less than $10,000 collectables acquired for $500 or less, or worth $500 or less when acquired
In the event of a relationship breakdown Relationship breakdown on transferring an asset to your ex-spouse because of the breakdown of your marriage or relationship, there is usually an automatic rollover of the asset. 'Rollover' means the transferor spouse disregards the capital gain or loss that would otherwise arise. In effect, the person who receives the asset (the transferee spouse) will make the capital gain or loss when they subsequently dispose of the asset. The cost base of the asset is also transferred to the transferee spouse.
In the calculation of the capital gain or loss on a rental property, we must provide a worksheet that shows: the purchase price and associated purchase expenses such as stamp duty, conveyancing fees and borrowing costs holding costs, such as interest, rates and taxes, repairs and maintenance capital improvements, including contracts for building and/or improvement works disposal costs, such as advertising and agent commissions.
Deceased estates and capital gains tax When a relative of a Nurse dies, an asset in their estate can pass: directly to beneficiaries (that is, people entitled to the assets of the deceased estate) directly to their legal personal representative (their executor or an administrator appointed to wind up the estate) from a legal personal representative to a beneficiary. If you're a beneficiary or legal personal representative, you are taken to have acquired the asset on the day the person died, but CGT does not apply when you acquire the asset. CGT may apply if you later dispose of the asset. The date of the person's death may be relevant when you calculate the capital gain.
You can claim a deduction for your related expenses for the period your property is rented or is available for rent. management and maintenance costs, including interest on loans, can generally be claimed immediately (that is, deducted against your current year's income). borrowing expenses, depreciation and capital works spending can be deducted over a number of years. You can claim expenses for your rental property for the period your property was rented or available for rent.
Expenses for which you may be entitled to claim an immediate deduction include:
-advertising for tenants
-body corporate fees and charges
-gardening and lawn mowing
-insurance (building, contents, public liability)
-property agent's fees and commission
-repairs and maintenance
-some legal expenses.
Limit on deductions for decline in value of second-hand depreciating assets from 1 July 2017, there are new rules for deductions for decline in value of certain second-hand depreciating assets in your residential rental property. If you use these assets to produce rental income from your residential rental property, you cannot claim a deduction for their decline in value unless you are using the property in carrying on a business (including a rental property business), or you are an excluded entity.
From 1 July 2017, travel expenses relating to inspecting, maintaining, or collecting rent for a residential rental property cannot be claimed as deductions by investors. The changes are now law. The travel expenditure is also not recognised in the cost base of the property for CGT purposes.
If a rental property is negatively geared a Nurse tax refund is normally a lot higher. In this case, you may be able to claim a deduction for the full amount of rental expenses against your rental and other income – such as salary, wages.
A rental property is said to be 'negatively geared' where the deductible expenses (including interest on the loan borrowed to finance the property) exceed the income earned from the property. The overall tax result of a negatively geared property is a net rental loss. When you complete your tax return for the relevant income year you offset this loss against salary income. Where the other income is not sufficient to absorb the loss, it's carried forward to the next income year.
Yes, Owning a Rental Property with a Spouse. When you own rental property with your spouse, it will most likely be a co-ownership or, under certain conditions, a partnership. Either way, earning rental income has its own impact on your tax return
The ATO will not allow you to claim a deduction for the total cost of improvements in the year you carry them out. Improvements on a property can still have tax benefits, though. These are split into two categories: deductions for depreciation and capital works deductions.
The maximum period the house can continue to be her main residence while it is used to produce income is six years. However, while the house is vacant, the period is unlimited, which means the exemption applies for the whole 10 years.
Nurses You can't claim: expenses not actually paid by you, such as water or electricity charges paid by your tenants >
At the end of the day Private health insurance is a personal choice. PHI is designed to cover policyholders should certain health problems crop up that need to be treated in the private system. Specifically, it can help you pay hospital and medical costs not covered by Medicare. But there are also certain healthcare costs that aren't covered by Medicare at all.
You could end up paying more tax if I don't have private health insurance depending on the level of your adjusted taxable. The Medicare levy surcharge (MLS) is levied on Australian taxpayers who do not have an appropriate level of private hospital insurance and who earn above a certain income. It is designed to encourage individuals to take out private hospital cover, and where possible, to use the private hospital system to reduce demand on the public Medicare system. The MLS is payable in addition to the Medicare levy. income.
If you're single and earn over $90,000 (or a couple or family earning over $180,000), buying private hospital cover can may help you to minimise your tax by avoiding having to pay the Medicare Levy Surcharge (MLS).
You can't actually claim anything back but you might be entitled to a small tax rebate. The private health insurance rebate is an amount the government contributes towards the cost of your private health insurance premiums. The private health insurance rebate is income tested. This means that if your income is higher than the relevant income threshold, you may not be eligible to receive a rebate. Your rebate entitlement depends on your family status on 30 June. Different thresholds apply depending on whether you have a single income or a family income.
Nurses if your private health insurance policy does not provide an appropriate level of private patient hospital cover for a full year, and your income for MLS purposes is above a certain threshold, you may have to pay Pro rata Medicare levy surcharge (MLS).
The MLS is a surcharge of between 1% and 1.5% of your income if you don't have private hospital cover. The ATO uses a special definition of income (called income for MLS purposes) to determine whether you are liable to pay the MLS, and the rate you will have to pay. The base income threshold (under which you are not liable to pay the MLS) is $90,000 for singles and $180,000 for families.
You need the appropriate level of private patient hospital cover Private patient hospital cover is provided by registered health insurers for hospital treatment provided in an Australian hospital or day hospital. You must arrange and pay for your cover directly with the insurer. For singles, an appropriate level of cover must have an excess of $500 or less. Couples or families must have an excess of $1,000 or less.
The Australian Government in July 2000 introduced lifetime health care (LHC) premium loading to encourage people to take out private hospital insurance at a younger age and maintain it over time. Once you turn 31, you’ve got until the following 1 July to buy private hospital cover and avoid paying the loading. For every year you delay, you may have to pay an additional 2% (up to a maximum of 70%) on top of the cost of your private hospital cover. The good news is that the loading doesn’t last a lifetime. Once you have held private hospital cover for 10 continuous years, the loading will be removed.
Medicare gives Australian residents access to health care. It is partly funded by the Medicare levy, which is 2% of your taxable income. You pay a Medicare levy in addition to the tax you pay on your taxable income. You may get a reduction or exemption from paying the Medicare levy. Your Medicare levy is reduced if your taxable income is below a certain threshold. In some cases, you may not have to pay this levy at all. The reduction or exemption will be determined from the information that you provide in your tax return. In addition to the Medicare levy, you may also have to pay the Medicare levy surcharge (MLS) if you don’t have an appropriate level of private patient hospital cover. If you have an appropriate level of private patient hospital cover, you won't have to pay the MLS, and depending on your income, you may be eligible for the private health insurance rebate. This rebate is an amount the government contributes towards the cost of your private hospital insurance premiums.
The net medical expenses tax offset will no longer be available from 1 July 2019.
From the 2014-15 income year until the end of the 2018-2019 income year, taxpayers can only claim the net medical expenses tax offset for medical expenses that both meet:
1.the current definition and eligibility requirements, and
2.relate to disability aids, attendant care or aged care.