GFM August 2024 Newsletter
21 August 2024
To all our valued clients, friends and family members
Tax season is well and truly amongst us and our team at GFM are working hard to meet expected turnaround times for all types of clients needs. We are also introducing a Financial Health Check that we will be sending out at months end for all tax returns completed in that previous month. Feedback to date has been very positive (via our trial testing), so please take the time once you receive this, to complete the form.
A few handy tips to consider:
No interest rate reduction on the horizon, review your home/investment loans now
Utility costs in the home are about to increase, look at changing providers
Make an appointment to get your FY24 tax return completed
AFL/NRL Footy finals around the corner – I am sure everyone is hoping the Bulldogs firstly make finals and then go on to win the premiership.
Regards,
Darren, Brent and the Team at GFM
GFM Financial Health Checks
In recent times we have had some great results when discussing with our clients their future plans. As an added services GFM will be conducting financial health checks for all clients.
We plan to email all clients over the course of this financial year, commencing this week.
Clients can also view and complete the Financial Health Check here on our website at any time, all information will be submitted back to us automatically and we will follow up with you to discuss further as required.
ATO’s tips for correctly claiming deductions for rental properties
Taxpayers who have work done on their rental property should consider the following factors in determining claims for expenses.
- Repairs and general maintenance are expenses for work done to remedy or prevent defects, damage or deterioration from using the property to earn income. These expenses can be claimed in the year the expense occurred.
- Initial repairs include any work done to fix defects, damage or deterioration existing at the time of purchase. These are capital repair expenses and cannot be claimed as a deduction.
- Capital works are structural improvements, alterations and extensions to the property, claimed at 2.5% over 40 years (with some exceptions). Deductions for capital works can only be claimed after the work has been completed.
- Improvements or renovations that are structural are also capital works. Work going beyond remedying defects, damage or deterioration which improves the function of the property are improvements.
- Repairs to an ‘entirety’ are also capital and cannot be claimed as repairs. Repairs to an entirety generally involve the replacement or reconstruction of something separately identifiable as a capital item (for example, a depreciating asset).
- Depreciating assets must be claimed over time (as ‘capital allowances’) according to their ‘effective life’.
Notice of online selling data-matching program
The ATO will acquire Australian sales data from online selling platforms for the 2024 to 2026 income years, including full names, dates of birth, addresses, emails, business names, ABNs, contact phone numbers and account details.
The ATO estimates the total number of account records to be obtained will be between 20,000 and 30,000 each income year, with approximately 10,000 to 20,000 of these records relating to individuals.
The objectives of this program are to (among other things) promote voluntary compliance and increase community confidence in the integrity of the tax and superannuation systems.
With just one more home and away game to go here’s what our leaderboard looks like.
Could jackwalsh92 possibly drop the ball and have one disaster of a round? and the places for 2nd and 3rd could definitely go anyone’s way for the remaining 9 tippers. The excitement is building!
1st – jackwalsh92 – 139 (624)
2nd – Steve Borton – 134 (537)
3rd – Geoff Pringle – 134 (622)
4th – KompySnr – 133 (607)
5th – Robdog32 – 133 (742)
6th – Jairocopter – 132 (607)
7th – AMPort – 132 (628)
8th – Mark1980! – 132 (631)
9th – Danni Mc – 130 (632)
10th – Harry Kelly – 130 (637)
Importance of good record keeping when claiming work-related expenses
The ATO is advising taxpayers that having records to substantiate claims is essential to prove deductions can be claimed, having regard to the following in particular:
- A bank or credit card statement on its own will generally not be enough evidence to support a work-related expense claim. Taxpayers instead need detailed written evidence such as a receipt.
- If a taxpayer’s total claim for deductible work expenses is $300 or less, they can claim a deduction without written evidence, but they must still be able to show that they spent the money and how they calculated the amount being claimed.
- While some deduction types do not require receipts (e.g., laundry expenses), some kind of record may still be necessary. Taxpayers may also need a record that shows their private and work-related use (e.g., a diary), and how the amount claimed as a deduction was calculated.
SMSFs acquiring assets from related parties
SMSFs cannot acquire an asset from a ‘related party’ (such as a member or their spouse or relative) unless it is acquired at market value and is:
- a listed security (e.g., shares, units or bonds listed on an approved stock exchange);
- ‘business real property’ (broadly, land and buildings used wholly and exclusively in a business);
- an ‘in-house asset’ as defined, provided the market value of the SMSF’s in-house assets does not exceed 5% of the total market value of the SMSF’s assets; and/or
- an asset specifically excluded from being an in-house asset.
If the asset is acquired at less than market value, the difference between the market value and the amount actually paid is not considered to be a contribution. Instead, income generated by the asset will be considered ‘non-arm’s length income’ and will be taxed at the highest marginal rate.
Any cause for a dress up is a good cause!
GFM will be supporting the Footy Colours Day national fundraising event again this year. We will proudly sport our team’s colours and raise money so kids don’t have to fight cancer alone.
Key Dates
- Lodge and Pay July 2024 Monthly BAS/IAS – 21st August 2024
- Lodge and Pay June 2024 Quarterly BAS – 26th August 2024
- Lodge and Pay July 2024 Superannuation Guarantee Charge Statement – 28th August 2024
- Lodge Taxable payments annual report (TPAR) – 28th August 2024
- Lodge and Pay August 2024 Payroll Tax – 7th September 2024
- Lodge and Pay August 2024 Monthly BAS/IAS – 21st September 2024
