Frequently asked questions about tax and accounting

To assist our clients, we’ve provided answers for many of the questions our Emerald accountants are asked regularly regarding tax and accounting. We are happy to answer any other queries you may have by phone or email. Our team can also arrange a consultation if you’d like individually tailored accounting, business or financial advice.

(A) Tax return for all individuals and trusts where one or more prior year tax returns were outstanding as at 30 June 2020.

Tax return for clients prosecuted for non-lodgement of prior year tax returns and advised of a lodgement due date of 31 October 2020.


https://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/Tax-agent-lodgment-program/Tax-returns-by-client-type/Individuals-and-trusts/

(A) July-September’s Quarter is due before the 28th October 2020. October-December’s quarter is due before the 28th February 2021. January-March’s quarter is due before the 28th April 2021. AprilJune’s quarter is due before the 28th July 2021.


https://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/BAS-agent-lodgment-program/#Lodgmentandpaymentduedatesandconcessiona

From 12 March 2020 until 31 December 2020 the instant asset write-off:

  • threshold amount for each asset is $150,000 (up from $30,000)
  • eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from
    $50 million).

https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-smallbusiness/

(A) For the 2019/20 and 2020/21 financial years there is a maximum of $25,000 (regardless of age) that can be deposited into your superannuation fund. This includes both employer and personal concessional contributions.


https://www.ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/?page=3

(A) You can no longer claim deductions for travel expenses relating to your residential rental property unless you are an excluded entity or entity carrying on a business of letting rental properties.

 

https://www.ato.gov.au/General/Property/Residential-rental-properties/Rental-properties-and-travel-expenses/#:~:text=You%20can%20no%20longer%20claim,business%20of%20letting%20rental%20properties.

(A) How long to keep your records


Generally, you must keep your written evidence for five years from the date you lodge your tax return. 


There are some more specific situations. If you:

  • Have claimed a deduction for decline in value (formerly known as depreciation) – keep records for the five years from the date of your last claim for decline in value acquire or dispose of an asset – keep records for the five years after it is certain that no capital gains tax (CGT) event can happen in dispute with us – keep records for the later of either
  • five years from the date you lodge your tax return
  • five years from the date the dispute is resolved.
  • It is important that you keep all your records in relation to all capital improvements on properties that you own (including payments to Councils for fees and charges)until 5 years you lodge the tax return when the capital gain occurred.-(If in doubt keep it)

Format of your records


You can keep your records in paper or digital format. If you make paper or digital copies, they must be a true and clear copy of the original.


We recommend you keep a back-up of all your digital records. Your documents must be in English unless you incurred the expense outside Australia.