Taxable Income FAQ (Frequently Asked Question)

I have quite recently gotten a letter from the tax office saying that I didn't pronounce some interest from my bank account. What would it be advisable for me to do ?

On the off chance that you trust this is wrong, you should contact your bank to confirm the wage points of interest for your records. The bank ought to tell the ATO in composing if this data isn't right.

You have 28 days to correct this information. However, on the off chance that you have excluded the taxable income, you won't have to contact the ATO. They will change your return and send you new assessment requesting payment of the extra tax, a general interest charge and, in some cases, punishments. On the off chance that you require help with your correspondence with the ATO, Indus Accounting can help.

What is a Living Away From Home Allowance ?

A Living Away From Home stipend is paid by employers when they require a employee to work in a zone that is diverse to their ordinary work environment and the employer pays the expenses to the employee for living away from home.

For instance, I work and live in Melbourne and following a couple of months the organization expects me to go to Regional NSW for a couple of months to do some work there. They pay me a remittance for the expenses of living in provincial NSW since they have asked for me to work there for a period.

This isn't taxable income, so I don't have to pronounce it in an tax return. It is a remittance paid by a employer to an employee and isn't liable to assess by the employee , if it is paid as per the tax office rules. No expenses can be claimed against this remittance.

I have inherited some money. Do I need to pay inheritance tax ?

A inheritance isn't taxable unless you are exhorted by the agent that a section is taxable. In any case, on the off chance that you contribute the tax from the estate, at that point any income will be taxable .

A friend told me about an investment that he was interested in and suggested that I put some money into it as well. He says we could make a large amount of money but I think it sounds too good to be true.

You are wise to be cautious. Not all schemes are genuine and often promise large tax deductions that they say will be allowed by the tax office. It is wise to check out any investment scheme before putting your money into them.

If you invest in a risky tax scheme, you could lose some or all of your money, and you may have to pay back any refunds due to over-claimed deductions as well as interest and penalties.

Before investing in any tax scheme it is advisable to seek independent advice from a professional advisor and/or the tax office. Information and warnings about investment schemes and scams can be found on the Australian Securities and Investment Commission and the Australian Competition and Consumer Commission SCAMwatch website.

Can all the interest from our joint accounts be declared in my wife's tax return because her income is much lower than mine ?

All income must be declared by each recipient on the same basis as the accounts are held. Interest from a joint account must be split 50/50. You cannot declare it all on your wife’s tax return and doing so could lead to an ATO audit.

I have shares and received franked dividends this year but have no other income. Do I have to lodge a tax return to get the franking credits refunded to me ?

You do not have to lodge a full tax return. You can complete the Refund of Franking Credits for Individuals form which can be lodged by telephone or mailed to the ATO.

Do I need to declare my overseas pension ?

In most cases overseas pensions are taxable and, if you are an Australian resident, you will need to include the amount in your tax return. There are a few exceptions to this rule. Please call Indus Accounting on 0423 264 003 / 0412 634 517 if you are not sure.

I have just moved permanently to Australia. Do I have to pay tax on the money that I have brought with me ?

You will only have to pay tax on any earnings you make from the time that you moved to Australia. If the money that you brought with you earns interest in a bank account you will have to pay tax on the interest.


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