Hadrill Accounting Home Page Image

Technical Tips

Technical Tip #1 - 29/4/14:  Did you know that the initial fee for a financial plan is not tax deductible, only the ongoing management fees.  However, all fees to a tax agent are tax deductible.

Technical Tip #2 - 1/5/14:  Did you know that stamp duty on the purchase of a rental property in Canberra is tax deductible.  This is because the duty is in relation to a lease as the land in Canberra is not freehold.  This can mean a massive refund in the year that you buy.  Eg, stamp duty on a $750k property is $29,600.  If your income is $100k, then the refund associated is $10,964.  You can't get this bonus in any other state at the time of purchase.  You have to wait until you sell the property to claim the stamp duty.

Technical Tip #3 - 6/5/14:  Did you know that you if you have exempt foreign income, any other income such as interest or dividends are 'taxed with progression'.  This means that even though your foreign income of $100k is not taxed, interest of $10k is taxed as if it was, ie, tax rate of 38.5% including medicare levy, rather than 0%.

Technical Tip #4 - 8/5/14:  Did you know that the costs to draw up your will are not tax deductible because there is no connection to any income producing activities.  This is of course not an excuse not to get it done.  It is vital! 

Technical Tip #5 - 13/5/14:  Did you know that if you have a business, general interest mags (like Choice or House and Garden) may be deductible if you have an office. 

Technical Tip #6 - 15/5/14:  Did you know that if you overlook claiming an expense as a tax deduction, you cannot carry it forward and claim it in a future year.  If you could this would be ripe for rorting the system by claiming more expenses in a high income year.  You do however have the option to amend your tax return if it is within 2 years of the issue date of the Notice of Assessment.  But for a $100 Wilderness Fund donation, it's probably not worth it.