Tax Time in the Shadow of Federal Election

Tax time 2016 starts with a Federal Election on July 2, but most of the campaign tax promises and changes will not start until 2017.

What we DO know, however, is that there will be some key changes already in place that could affect the tax outcomes for the 2016 year – and many of these changes are potentially positive.

These changes include:

• Simplified depreciation for small businesses including an immediate write-off of $20,000 for eligible assets
• Company tax cuts for small business
• Small business (non company) income tax offset
• Immediate deductions for business start up costs
• Phase out of net medical expenses income tax offset (now only for disability aides, attendant care or aged care)
• Increasing access to company losses
• Accelerated depreciation for primary producers
• Widespread introduction of Super Stream legislation

Scrutiny of Personal Deductions.

Meanwhile, the ATO has announced that it will use new upgraded resources (both human and computer) to increase scrutiny of personal tax deductions in 2016.

They are particularly focussing on deductions that are outside the norm for your occupation – either the type of deduction or the size of the deduction.

This does not necessarily mean that you will be denied these claims, but it does mean that we will take more care than ever to ensure that the claims are legal under the current tax laws.

This includes making sure that there is a sufficient connection between the expense and your income, that there have been no rulings from the ATO specifically denying the claims and that you have the necessary documentation to prove the claims should the ATO question them.

Checklists Ready for Tax Time

Our 2016 Tax Return Checklists have been updated and are ready to be accessed for those who want to start getting their 2016 tax returns organised

These checklists are extremely popular with both clients who make face-to-face appointments and those who complete their returns via mail or email

They include comprehensive lists of the potential income and expense items you need to gather. Some worth specific mention include:

• Updated motor vehicle logbooks (if your logbook is older than 5 years)
• Details and tax invoices relating to any depreciable items purchased
• For businesses, a 30 June stocktake and identify any bad debts to be written off
• Any new leases or loan agreements for tax deductible items (eg purchase of new car)
• Proof of tax deductible super contributions (NB the super must RECEIVE the money in their account by 30 June and people can be caught using services like BPay which can take a couple of business days

Download a copy of the 2016 Tax Checklist. Or to organise to have one sent to you please contact office@agilisaccountants.com.au or phone (07) 3359 5244

Appointments and Opening Hours

Our opening hours during tax season – from July to October – are as follows

Monday 8am-5pm

Tuesday 8am-5pm

Wednesday 8am-8pm

Thursday 8am-8pm

Friday 8am-5pm

Saturday 8am-1pm

To book your appointment, contact office@agilisaccountants.com.au or phone (07) 3359 5244