Helpful Information, Tools and Links


Claiming Motor Vehicle Expenses

This will depend on a number of factors and a full review of your current situation would be required to answer the question. For more information on claiming motor vehicle expenses see ATO guidelines xhttps://www.ato.gov.au/uploadedFiles/Content/MEI/Downloads/TaxTimeToolkit_SB_motor-vehicle.pdf

For instructions and information on the log book method and keeping a log book see:

https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-motor-vehicle-expenses/Logbook-method/

There are a number of free logbook apps available on the Apple app store and google play store to make keeping a logbook easier.

Using your company money or assets

When operating in a company it is common for there to be confusion on the available use of the company money for personal use. See the ATO guidance on how you can access company money. https://www.ato.gov.au/Tax-professionals/TP/Tax-Time-Toolkit---Small-business/?anchor=Business_structure#Business_structure Talk to us today about setting up payroll, Div 7A loans and or dividend payments to be able to access the company funds.

ASIC and Director ID

What is a Director Identification Number?

During 2021, the government initiated a new system that attaches a unique identifying number to an individual who is a company director. A director has one number permanently attached to them, and this is used for identification purposes for any or all companies they are a director of.

From 5 April 2022, director ID numbers are mandatory for all new company directors.

The new Australian Business Registry Services (ABRS) administers the director ID register. The ABRS will gradually integrate all government business registers into one easily accessible register with greater security.

The director ID numbers promote integrity and better transparency of appointed directors. The system is designed to flush out fake director identities used in illegal activities, which results in increased privacy protections for legitimate directors.

What do You Need to do?

  • Existing directors have until November 2022 to register for a director ID number. But there’s no reason to delay – apply as soon as possible.

  • New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of being appointed as a director.

  • New directors appointed from 5 April 2022 must obtain a director ID number before accepting a director appointment.

  • Prospective directors can apply for a director ID up to 12 months ahead of the appointment.

  • Complete the application process yourself as you must verify your identity as part of the application – nobody else can apply on your behalf.

Application Process

The easiest and fastest way to apply is online via ABRS.

  • You’ll need a myGovID account to apply for your director ID number online. This creates an authenticated digital identity you can use when accessing government services online.

  • Apply through ABRS Director identification number. You’ll need proof of identity documents such as tax file number, ATO notice of assessment or bank details.

  • You’ll then need to complete the application process from the ABRS webpage, which will link your myGovID account to the application. If the application is verified successfully, you’ll receive your director ID straight away.

  • You can also apply via paper form or telephone; however, this is a slower process.

What Next?

Set up your myGovID if you haven’t already. Get your identification documents together and apply by your due date. This is also a great time to update your ABN details and ASIC details. Talk to us if you’d like to know more about director ID numbers and company director obligations.

Small Business ATO Tax Time Toolkit

https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_small-business.pdf

Investors ATO Tax Time Toolkit

The ATO has put together a handy guide for investors. This toolkit goes through information for rental property owners and interest expenses, borrowing expenses, repairs and maintenance and capital expenditure. CGT on the sale of rental properties inherited property and property transfers in marriage breakdown.

The guide covers Cryptocurrency, Pay as you go tax installments

https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_forinvestors.pdf

Home Based Business Expenses

Find out about what you can and cannot claim if you run your business from home. It is also important to take into consideration the impact of capital gains tax on your property if it sold.

https://www.ato.gov.au/Tax-professionals/TP/Tax-Time-Toolkit---Small-business/?anchor=Homebasedbusinessexpenses#Homebasedbusinessexpenses

ATO Guidance on Expenses and Tax Deductions for specific industries

The ATO has an extensive list of industry-specific occupation fact sheets on what you can claim. For the full list of guides see https://www.ato.gov.au/Tax-professionals/TP/Tax-Time-Toolkit-general/?page=4#Occupation_guides

Nurse or Midwife - https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_Nurseormidwife.pdf

Teacher - https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_Teacher.pdf

Hairdresser or Beauty Therapist - https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_Hairdresserorbeautytherapist.pdf

Tradie - https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_Tradie.pdf

A community support worker or direct carer - https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_Communitysupportordirectcarer.pdf

Cleaner - https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_Cleaner.pdf

Construction Worker - https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_ConstructionWorker.pdf

Hospitality Worker - https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_Hospitalityworker.pdf

Retail -https://www.ato.gov.au/uploadedFiles/Content/IAI/Downloads/Toolkits/TaxTimeToolkit_Retail.pdf

Investment Property/Rental property income and expenses

Every year your rental property income and expenses need to be included in your tax return under a rental schedule. This then reports the net taxable income or loss on the property. Please ensure that you collate all of the expenses related to the property including council rates notices, water rates notices, insurance on the property, interest on the property loan, any repairs and maintenance and land tax. Any capital works on the property is not deductible as an expense but added to the capital value of the property and considered as part of the cost base when sold and the net capital gain is calculated.

We strongly encourage you to send through all details relating to investment properties when purchased to ensure that over time we can be collating the information that forms the cost base when the property is sold. It is also recommended to have a quantitative survey performed when purchasing an investment property as they will prepare a Tax Depreciation Schedule for the property.