Getting Your Taxes Right: A Quick Guide

With tax season in full swing, the Australian Taxation Office (ATO) has some important reminders for rental property owners and taxpayers.

Reporting Rental Income:

• Report rental income in the year you receive it, not when your agent transfers it.
• Report the full income before expenses like property management fees are subtracted.

Types of Rental Expenses:

1. Non-deductible Expenses: Includes personal use costs and capital expenses.
2. Immediate Deductions: For expenses like loan interest, council rates, repairs, and assets under $300.
3. Long-term Deductions: For expenses like 'capital works' and loan setup costs over multiple years.

Choosing PAYG Instalment Method:

• Two methods: Instalment Amount (for steady income) and Instalment Rate (for variable income).
• You can adjust instalments if needed.

GST Fraud Conviction:

• A man sentenced to 7.5 years for fraudulent GST refunds.
• ATO's Operation Protego tackles GST fraud.

Unused Concessional Contributions Cap:

• If your super balance is under $500,000, you can contribute more than the regular cap, rolling it over for up to five years.

Deduction for Personal Super Contributions:

• Ensure you meet 'notice requirements' to claim a deduction.
• Accuracy and timely notifications are crucial.

Disclaimer: the above comments in this blog post are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

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