TickTax Australia

Sadly, it's not all a walk in the park. This is the scary stuff that you probably didn't want to know but we think just might be handy to be aware of.

Medicare Levy Surcharge –  Even after your normal 1.5% medicare levy that we all pay, if you do not have private patient hospital cover you may have to pay an extra 1% of taxable income as a surcharge.         

• Single without dependants – taxable income over $70,000
• Couple without dependants – combined taxable income over $140,000
• Family with dependents - $140,000 plus $1,500 for each dependent child after the first

So you could always try checking out private hospital cover at www.iselect.com.au.

Total Reportable Fringe Benefits Tax – If your employer provides certain fringe benefits exceeding $2,000 to you or your relatives, your employer is required to report the total grossed-up amount (the actual amount plus notional FBT payable on that amount) on your PAYG summary (group certificate).  It is not included in your taxable income so there is no income tax or medicare levy payable on it but is used in determining other tax issues including some tax offsets and Centrelink benefits. 

ATO Audit program – The ATO reviews deductions including expenses on motor vehicles, self-education, home office and travel.  Each year a number of occupations are selected for specific focus because they have above average work-related expense claims, a high number of work-related expense claimants or because the ratio of work-related expense claims are high compared to the salary and wages. 

 The Tax Office focus for the 2008 tax return will be on:

• business professionals
• hospitality industry service workers
• factory hands, store workers and process workers
• mechanical, automotive and electrical tradespersons
• information technology professionals, and
• mining site employees.

Record retention - you need to keep your records for at least five years from 31 October or the date the return is lodged if that is later.