Changes You May Need to Know!
Personal Tax Returns
Among the various changes here are some of the key changes you will need to know when it comes time to prepare your 2014 tax return!
Private Health Insurance Rebates
- There have been a few changes in the way your private health insurance rebate is calculated, the rebate percentages are now adjusted on April 1st by an adjustment factor meaning you will now have one percentage to claim from 1 July to 31 March and another from 1 April to 30 June.
- What this means for you – when it comes time to complete your tax please ensure you have received or downloaded your Annual Tax Statement from the your insurer and bring it with you to your appointment at CATS to enable we are able to complete your return quickly.
Net Medical Expenses Tax Offset
- As we may have mentioned to you last year this offset is being phased out over a number of years
- What this means for you – If you did not claim and receive this offset in your 2013 tax return you won’t be able to claim it this year unless the expenses relate to disability aids or aged care. If you did claim it last year then you are able to claim it this year so ensure you gather your receipts to bring into CATS. Depending on your earnings you may have to meet a different total expense this year, please contact CATS for more information.
Change of Name
- If you have changed your name for any reason during the year (eg for marriage) then you will need to contact the ATO to inform them before you lodge your tax return from the 2014 tax year onwards.
- for most refunds the ATO will no longer send cheques out with your notice of assessment. You will need to provide the bank account details of the account that you would like to have the refund deposited into when CATS complete your return. Please bring these along with you to your appointment.
- The Government have announced that with your notice of assessment you will now receive a ‘Tax Receipt’ that details how your tax paid will be spent in this year’s budget. For an example and for more information please visit to ATO’s website.
Small Business Returns
The Superannuation Guarantee
- has increased from 1st July 2014 from 9.25% to 9.5% so ensure that you are paying your employees the correct rate. For information on how to change this in your datafile please contact CATS.
Fuel Tax Credits
- As always there are changes to the fuel tax credit rates as at 1st July 2014 please visit the ATO’s website before you complete your next BAS for the most recent rates.
Simplified Depreciation Rules
- The government have proposed changes to the simplified depreciation rules for small business in relation to the immediate write off of assets costing less than $6,500 and the accelerated depreciation of motor vehicles. The proposed changes would reduce the immediate write off of low cost assets to $1,000 and would scrap the accelerated depreciation of motor vehicles all together as at 1st January 2014. This would mean that for half of the year you would have different rules than the other. However this has not yet passed through government and is expected to be put back in front of the senate early in the financial year.
- What this means for you – Apart from a headache this means that depending on which set of laws you decide to complete your tax return with you may be faced with amending your return later when it is either passed or rejected by the senate. The ATO have been kind enough to ensure that if the change in law results in you having to amend your return you will not be charged interest or penalties for this amendment. Nice of them. For more information please contact our office.
For any other changes or for any questions at all please feel free to contact CATS, we would be glad to lend our expertise!