Savill & Co in Osborne Park, Western Australia | Financial service

Savill & Co

Locality: Osborne Park, Western Australia

Phone: +61 8 9349 9256

Address: 78 Paramatta Road 6018 Osborne Park, Western Australia, WA, Australia

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• Tax preparation service
• Accountant
• Financial service

04.01.2022 With it being 31st October, a reminder that if you have a Tax Agent act on your behalf, today is not the deadline for you to lodge your tax return. Tax Agents receive an extension of time (because there's no realistic way we could complete all work in just 4 months), with in the main, the 15th May of the following year being the latest date for lodgement. However, if you intend to complete your tax return yourself, then get cracking, any lodgement after today can lead to a penalty!

03.01.2022 Hi All, Today I'm beginning my "did you know" noticeboard in an effort to highlight new taxation laws which may affect you. My attempt will to be provide general, simple information which is relevant to everyone. The first in this series is car expenses. A major shake-up has occurred which simplies the choices available to taxpayers in making claims for their vehicle (be it for business or employees). The changes are outlined in the text below, extracted directly from the ATO... website:- Car expense substantiation methods simplified The government has simplified the car expense deductions for individuals from 1 July 2015. Prior to 1 July 2015, there were four methods for claiming car expenses: Cents per kilometre - capped at 5,000kms Logbook - unlimited kms 12% of original value One-third of actual expenses. To simplify the rules, from 1 July 2015, the government has abolished the one-third of actual expenses method and 12% of original value method. The cents per kilometre method (with the existing 5,000km cap) and the logbook method (with unlimited kms) remain. The cents per kilometre method has been simplified to use a standard rate of 66 cents per kilometre for the 2015-16 income year, rather than a rate based on the engine size of the car. The Commissioner of Taxation will set the rate for future income years. Employers should be aware that the Tax Office set the approved pay as you go withholding rate for cents per kilometre car allowances at 66 cents per kilometre from 1 July 2015. Employers should withhold from any amount above 66 cents for all future payments of a car allowance. Failure to do so may result in the employee having a tax liability when they lodge their tax return. Employees, who from 1 July 2015 have been paid a car allowance at a rate higher than the new approved amount, should consider whether they need to increase their withholding to avoid any tax liability at the end of the year. In summary, the "old" set rates have been reduced to a flat 66c/km and if you're an employer, you will now be required to deduct tax from the allowance for any amounts paid above this threshold.In addition employees will find their claims reduced and hence lower tax refunds.

03.01.2022 Common Questions Throughout the year, we receive requests for details on a wide and varied range of tax related items but are a few that we answer on a regular basis, some of the more "common" questions raised are:- Record Retention...Continue reading

03.01.2022 Further to my last post regarding vehicle expense claims, heer's a follow-up from the ATO:- Do you have clients using the logbook method? There are now only two methods available to calculate work-related car expense deductions: the logbook method and the cents per kilometre method.... If you have clients using the logbook method, they must record their motor vehicle usage in a logbook for a minimum continuous period of 12 weeks. This means if your clients have not already begun logging, you should suggest they start now. Logbook method Your claim is based on the business-use percentage of the expenses for the car. Expenses include running costs and decline in value but not capital costs, such as the purchase price of your car, the principal on any money borrowed to buy it and any improvement costs. To work out your business-use percentage, you need a logbook and the odometer readings for the logbook period. The logbook period is a minimum continuous period of 12 weeks. You can claim fuel and oil costs based on either your actual receipts or you can estimate the expenses based on odometer records that show readings from the start and the end of the period you had the car during the year. You need written evidence for all other expenses for the car.