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Arrowhead Tax Accountants

Kenneth-Chircop

Arrowhead Tax Accountants provides accounting, taxation, bookkeeping and business advisory services. We assist individual’s starting a new business to those looking at buying established businesses. Individual annual tax compliance is also part of our service offering and encompasses salary and wages earners to those individuals with property and investment portfolios.

Kenneth-Chircop

About Us

 

Kenneth Chircop, Director, has over 15 years experience within the accounting profession. His formalised qualifications are that of a Certified Practising Accountant. He has also earned a Master of Business Administration (Monash), Graduate Diploma of Accounting and Bachelor of Commerce (Marketing). Kenneth is a Registered Tax Agent with the Tax Practitioner Board of Australia.

Areas of Practice

Arrowhead Tax Accountants will help you optimise your allowable tax deductions. Our practice deals with clients from a diverse range of industries and backgrounds and will claim every deduction you are legally entitled to no matter how small.
In view of the constant amendments to tax laws and business requirements, Arrowhead Tax Accountants will ensure your business obligations are managed effectively, with the necessary forward planning and due care.
Kenneth Chircop has provided professional taxation advice to start-up enterprises through to established businesses, however back-office support is also a service area of Arrowhead Tax Accountants which is often undertaken for clients.

Latest News

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2 January 2023: Tax Deduction Tips for your Rental Property Investment

According to data sourced from the Australian Taxation Office rental income and deduction will always be closely monitored since 2.2 million Australians hold and investment property and claim over $50 billion in deductions each year. (ATO Year Ending 30 June 2019.)

However, the opportunity to optimise the deductibility of associated expenses relating to your property should be scrutinised a little closer by following a few tips to ensure you remain complaint with the Australian Taxation Office. Kenneth Chircop, Director, Arrowhead Tax will guide your through this.

For most of you, the interest expense associated with financing your rental property will yield the greatest deduction. However, care must be taken to ensure the interest expense is apportioned correctly if the finance is for a mixed use or the rental property is not exclusively available to tenants at market rates (e.g., for family or friends).

The depreciation of fixtures, fittings, and the property itself is also deductible under certain conditions. The caveat being that a schedule must be prepared by a certified quantity surveyor who is also a registered tax agent. There is a cost incurred to prepare these schedules, which may be well worth it if you have purchased a newly constructed property.

Finally, the following worksheet may act as a guide to assist you to determine what information is required to prepare the rental property section of your tax return. As with all sections of your tax return, this section is no different and must be fully supported with receipts and diary entries.  However, it is important to establish that your rental property was genuinely available for rent. Also, that repairs to your property and in fact repairs, as opposed to capital improvements as excessive deductions for repairs may comprise the validity of your deductions.

The following list represents the complete list of rental property deductions that may be available to you.

Rental Deductions

Advertising for tenants
Body corporate fees and charges
Borrowing expenses
Cleaning
Council rates
Deductions for decline in value
Gardening / Lawnmowing
Insurance
Interest on loans
Land tax
Legal expenses
Pest control
Property agents fees / Commissions
Repairs and Maintenance
Capital works deductions
Stationery, telephone and postage
Travel expenses
Water charges
Sundry rental expenses

Disclaimer: The contents of this paper are for general information only. They are not intended as professional advice, for this you should contact a suitably qualified accountant or other professional. The tax law and ATO position on these matters may be subject to both prospective and retrospective changes. The information is current as at 20 March 2023, and p[provides the best information available at the time.

© Arrowhead Accounting Pty Ltd trading as Arrowhead Tax Accountants 2023. [2 January 2023]. Except as permitted by the copyright law applicable to you, you may not reproduce or communicate any of the content on this website, including files downloadable from this website, without the permission of the copyright owner. The Australian Copyright Act allows certain uses of content from the internet without the copyright owner’s permission. This includes uses by educational institutions and by Commonwealth and State governments, provided fair compensation is paid. 

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23 March 2023: Employer Obligations - Superannuation for Employees

As of 1 July 2022, the rate of superannuation payable to employees is 10.5% an increase from 10 %. Employee superannuation will progressively increase to the Government’s policy of 12 % from 1 July 2025. The next increase to 11 % is required on the 1 July 2023.
A point of note is that the prior legislative requirement to pay superannuation once an employee earns over $450 per month is now amended to every $1 of earnings of an employee generates removing the $450 threshold. The only exception to this to rule is if your employees are under 18 years of age and, work less than 30 hours per week, superannuation will be payable on all earnings.
It is imperative that employees adhere to their reporting obligations with the Australian Taxation Office to avoid the requirement to lodge a Superannuation Guarantee Charge statement and avoid additional surcharges on the late payment of employee superannuation.Source: Australian Taxation Office, March 2023

Disclaimer: The contents of this paper are for general information only. They are not intended as professional advice, for this you should contact a suitably qualified accountant or other professional. The tax law and ATO position on these matters may be subject to both prospective and retrospective changes.
© Arrowhead Accounting Pty Ltd trading as Arrowhead Tax Accountants 2023. [23 March 2023]. Except as permitted by the copyright law applicable to you, you may not reproduce or communicate any of the content on this website, including files downloadable from this website, without the permission of the copyright owner. The Australian Copyright Act allows certain uses of content from the internet without the copyright owner’s permission. This includes uses by educational institutions and by Commonwealth and State governments, provided fair compensation is paid..

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17 May 2023 - Rental Property Worksheet

Congratulations! you have purchased a rental property for investment purposes. Now is the opportunity to optimise the deductibility of associated expenses by following a few little tips to ensure you remain complaint with the Australian Taxation Office. Kenneth Chircop, Director, Arrowhead Tax www.arrowheadtax.com.au will guide your through this.

For most of you, the interest expense associated with financing your rental property will yield the greatest deduction. However, care must be taken to ensure the interest expense is apportioned correctly if the finance is for a mixed use or the rental property is not exclusively available to tenants at market rates (e.g., for family or friends).

The depreciation of fixtures, fittings, and the property itself is also deductible under certain conditions. The caveat being that a schedule must be prepared by a certified quantity surveyor who is also a registered tax agent. There is a cost incurred to prepare these schedules, which may be well worth it if you have purchased a newly constructed property.

Finally, the following worksheet may act as a guide to assist you to determine what information is required to prepare the rental property section of your tax return. As with all sections of your tax return, this section is no different and must be fully supported with receipts and diary entries. However, it is important to establish that your rental property was genuinely available for rent. Also, that repairs to your property and in fact repairs, as opposed to capital improvements as excessive deductions for repairs may comprise the validity of your deductions.

The following completed worksheet is an example of how to work out your net rental income or loss.

Disclaimer: The contents of this paper are for general information only. They are not intended as professional advice, for this you should contact a suitably qualified accountant or other professional. The tax law and ATO position on these matters may be subject to both prospective and retrospective changes. © Arrowhead Accounting Pty Ltd trading as Arrowhead Tax Accountants 2023. [17 May 2023]. Except as permitted by the copyright law applicable to you, you may not reproduce or communicate any of the content on this website, including files downloadable from this website, without the permission of the copyright owner. The Australian Copyright Act allows certain uses of content from the internet without the copyright owner’s permission. This includes uses by educational institutions and by Commonwealth and State governments, provided fair compensation is paid. For more information, see www.copyright.com.au and www.copyright.org.au.The owners of copyright in the content on this website may receive compensation for the use of their content by educational institutions and governments, including from licensing schemes managed by Copyright Agency. We may change these terms of use from time to time. Check before re-using any content from this website.

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10 Febuary 2023: Tax Deductions for Salary and Wage Earners

Generally, as a rule, if you are regarded as an employee, you will be deemed to be a salary and wage earner. As a result, the expenses you incurred which give rise to tax deductions associated with earning your income must have a direct link to your income producing activities. The expenses cannot be incidental or incurred as a matter of convenience.

The Australian Tax Office has a strict requirement for the taxpayer to provide full substantiation of tax deduction claims (receipts, bank statement entries, diaries, loan documents and logbooks etc.). There are no exceptions to this rule as a taxpayer must support his claim in the event of a review or audit by the Australian Taxation Office.

As a general guide a list of work-related expenses include:

  • Motor vehicle logbooks or a diary of work-related motor vehicle travel under 5000 km.
  • Donations to charities (unless you get a ticket to win something in return, those ones don’t count)
  • Fee charged for previous year’s tax return.
  • Income protection insurance
  • Replacement of Uniforms and Protective Clothing
  • Laundry
  • Any Other Work-Related Expenses – these can be assessed at the time of your appointment, so it is better to have the receipt than not.
  • Any extra superannuation contributions.
  • Accommodation and meals cost you’ve incurred from working away from home.
  • Home office running expenses.
  • Work-related education expenses.
  • Rental property expenses – rates, body corporate, agent fees, interest on your loan, repair and maintenance, water rates, depreciation schedule.
  • Investment expenses.
  • Records of sales and purchases of shares, businesses, or property.

Disclaimer: The contents of this paper are for general information only. They are not intended as professional advice, for this you should contact a suitably qualified accountant or other professional. The tax law and ATO position on these matters may be subject to both prospective and retrospective changes.

© Arrowhead Accounting Pty Ltd trading as Arrowhead Tax Accountants 2023. [10 Febuary 2023]. Except as permitted by the copyright law applicable to you, you may not reproduce or communicate any of the content on this website, including files downloadable from this website, without the permission of the copyright owner. The Australian Copyright Act allows certain uses of content from the internet without the copyright owner’s permission. This includes uses by educational institutions and by Commonwealth and State governments, provided fair compensation is paid. 

Download PDF here

15 April 2023 – Small Business Late Lodgements Amnesty
The government is offering a lodgement penalty amnesty program for small businesses to encourage them to re-engage with the tax system and get their obligations up to date.

The amnesty applies to tax obligations, including income tax and business activity statements, that were originally due from 1 December 2019 and 28 February 2022.
If those returns are lodged between 1 June 2023 and 31 December 2023, any failure to lodge penalty applying to the late lodgement will be automatically remitted. No action is required to request a remission.
To be eligible for the amnesty the small business must, at the time of lodgement, be an entity with an aggregated turnover of less than $10 million.

This does not apply to privately owned groups, or individuals controlling over $5 million of net wealth.
Source Australian Tax Office: 09 May 2023

Disclaimer: The contents of this paper are for general information only. They are not intended as professional advice, for this you should contact a suitably qualified accountant or other professional. The tax law and ATO position on these matters may be subject to both prospective and retrospective changes.
© Arrowhead Accounting Pty Ltd trading as Arrowhead Tax Accountants 2023. [15 April 2023]. Except as permitted by the copyright law applicable to you, you may not reproduce or communicate any of the content on this website, including files downloadable from this website, without the permission of the copyright owner. The Australian Copyright Act allows certain uses of content from the internet
without the copyright owner’s permission. This includes uses by educational institutions and by Commonwealth and State governments, provided fair compensation is paid. For more information, see www.copyright.com.au and www.copyright.org.au.The owners of copyright in the content on this website may receive compensation for the use of their content by educational institutions and governments, including from licensing schemes managed by Copyright Agency. We may change these terms of use from time to time. Check before re-using any content from this website

Download PDF here

25 June 2023 – 2023 Individual Tax Return Checklist
This checklist provides an overview of key areas that you will need to organise and consider for the 2023 Tax year. This is not a comprehensive list but sufficiently detailed. If in doubt, please contact Ken for clarification.

INCOME

  • Income statements from employers will be available on your MyGov Portal as well on my Tax Agent Portal. It is wise to review what is available on your MyGov ATO Link to ensure all salary and wage income is accounted for.
  • If you are a self-employed as a sole trader structure the total of all your fees/sales is required here. This value will be reported excluding GST in the tax return.
  • Lump sum payments (employment termination payments.)
  • Superannuation lump sums, pensions, and income streams (letters and schedule.)
  • Governments payments/ allowances (pensions, jobseeker, parenting payments.)
  • Interest earned from saving accounts and term deposits.
  • Dividend statements/ Managed funds annual tax statement, capital gains statement.

OTHER INCOME

  • Details of foreign source income, foreign assets, or property.
  • Employee share scheme payments
  • Details of the sale of any shares, crypto-currency, property, or real estate for investment purposes.
  • Details of rental property income.
  • Details of any partnership, trust distributions, first homeowner saving accounts payments.

WORK AND INVESTMENT RETALED DEDUCTIONS

  • Motor vehicle use (excludes home to work travel.) Two options – logbook method kept for 13 weeks and claim business use percentage of all motor vehicle expenses or Cents per kilometre method at the ATO set rate to the maximum of 5000km.

Some categories for work related expenses are noted in the table below. There must be a connection with your income and not be of a private or personal nature. If you are unsure what category it fits in ensure to advise me of the potential deduction for assessment.

o   Travel – parking, fares, tolls, accommodation, airfares, meals etc. o   Home office consumables – stationery, toner etc.
o   Purchase / Replacement of Uniforms and PPE o   Union fees, Professional memberships
o   Self-Education – related to existing vocation – enhancement. o   Conferences / Seminars / Workshops
o   Home office expenses – Actual Method % of time spent on phone, internet, heating, electricity, or Set Rate Method – Number of hours per week. o   Any tools, computer related items costing less than $300.00

Private Health Insurance: If you are covered by private hospital cover, the number of days you were covered by this policy (e.g., 365 days)

 

Disclaimer: The contents of this paper are for general information only. They are not intended as professional advice, for this you should contact a suitably qualified accountant or other professional. The tax law and ATO position on these matters may be subject to both prospective and retrospective changes.
© Arrowhead Accounting Pty Ltd trading as Arrowhead Tax Accountants 2023. [15 April 2023]. Except as permitted by the copyright law applicable to you, you may not reproduce or communicate any of the content on this website, including files downloadable from this website, without the permission of the copyright owner. The Australian Copyright Act allows certain uses of content from the internet
without the copyright owner’s permission. This includes uses by educational institutions and by Commonwealth and State governments, provided fair compensation is paid. For more information, see www.copyright.com.au and www.copyright.org.au.The owners of copyright in the content on this website may receive compensation for the use of their content by educational institutions and governments, including from licensing schemes managed by Copyright Agency. We may change these terms of use from time to time. Check before re-using any content from this website

Download PDF here

Arrowhead Tax

  0400 158 742

  Caroline Springs, VIC 3023

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Arrowhead Accounting Pty Ltd trading as Arrowhead Tax Accountants is a CPA Practice with liability limited by the professional standards legislation.

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