TickTax Australia

You're not the only one wondering about these questions, so don't be afraid to ask.

In the meantime, here are some useful answers to those frequently asked questions.  Keep in mind though that these answers are of a general nature. Contact us to discuss your particular situation. And you will understand if we save a few of the answers for our registed clients who can access More FAQs here.

Can I claim vehicle expenses if I have not kept a log book?

Yes, you can, though you may get a bigger deduction if you do keep a log book. The Tax Office will let you use a cents-per-kilometre method with the cents dependent upon the engine size but this is limited to 5,000 kms. Over 5,000 kms you can claim up to one-third of actual expenses without a log book or 12% of the original vale of the vehicle. (Note: you can generally claim most or all expenses for larger trucks, vans and specially modified business vehicles.)

What % of donations are tax deductible?

100% - provided that the gifts are made to a "deductible gift recipient", namely an organisation that the Tax Office has pre-approved  (See Locating an organisation for tax deductible gifts). To claim a tax deduction for a gift, the payment must be truly a gift of $2 or more (purchase of raffle or art union tickets are not a gift nor are membership fees, fundraising dinners etc).

Do I have to pay capital gains tax when I sell my shares or rental property?

Provided that you have made a gain, you will probably have to pay tax. If you have held the shares or property for less than 12 months, the whole of the capital gain is taxed as part of your assesable income. If you have held them for more than 12 months contract-to-contract date, you will pay capital gains tax but in general only half the gain is counted into your taxable income. If you have lived in your rental property for a period, there may be a further reduction - and if you happened to purchase the shares or rental property before 20 September 1985 you won't pay at all!

Should I invest in shares or a managed fund?

Different investments have their own advantages and disadvantages and what is right for you depends upon your investment goals and risk profile. You need to discuss this question with your licensed financial adviser. If you don't have a financial adviser or are looking for a second opinion, please contact your local TickTax office and we can refer you to one or more that we have found to be quite good.

What is the best way to start investing in the share market?

There are different ways of investing in the share market from managed funds, direct investment though either a full-service or a discount (online) broker or through a share club. What is best for you depends upon your investment goals and risk profile. You need to discuss this question with your licensed financial adviser. But there are tax implications and you may want to consider whether you hold shares in your own name, jointly with your partner or in a discretionary trust (to name just some of the options). Existing clients can e-mail us about their situation or give us a call.

When can I claim interest on money that I borrow?

Most borrowers are able to claim loan interest and other costs of investment as tax deductions - depending on individual circumstances. The investment must be one that is reasonably expected to produce income now or in the future. Examples might be a margin loan or an equity drawdown to purchase shares, a mortgage loan to buy a rental property or a bank loan to acquire or expand a business.

You wouldn't expect to be able to claim the interest on a holiday loan but you might be able to claim a portion of your car loan if you normally claim motor vehicle expenses. 

More FAQs

Registed clients can access More FAQs here. Some of the questions you will find are ...

What are the tax implications of having a second job?

Should I be making additional contributions to my super fund?

Should I salary sacrifice?

What is the minimum investment needed to set up my own self managed super fund?

What type of assets can the fund invest in?

Should I take out income insurance?

Is it OK to prepare my will using an online service?

Are my education expenses allowable as a tax deduction?

We had our first child this year – what are the tax implications?

Should I claim the Medicare rebate from my private health care provider?

What expenses can I claim when repairing or renovating my rental property?

I worked overseas for a portion of the year – do I have to declare this income?