It’s Tax Time Again! By Joe Smith

It doesn’t seem like 12 months since the last tax season began, and in those 12 months we have seen some significant activity by the ATO in Gladstone with some taxpayers having to pay significant amounts back to the taxman!

We don’t need to dwell on the past though, and now that 2016 tax time has arrived everyone should know the importance of keeping invoices and receipts for legitimate work related deductions.  With the technology that we have available nowadays this should be easier than ever as taking a picture on your smart phone of a receipt is just as good as keeping a paper copy of the receipt.  Some businesses will also email an invoice directly to you in a PDF document so there is no need for paper and you can do your bit for the environment as well.

There are a couple of changes in the claims that can be made in the 2016 tax return that everyone should be made aware of.  The first is in relation to work related car expenses where there are now just 2 methods available to make a claim. 

The first method is a new flat rate of 66 cents per kilometre for up to 5000 kilometres of work related car travel.  This replaces the three rates previously available depending on the engine size of the vehicle and in most instances this will be a lower rate

than previously claimed.  The second method is by keeping a logbook for a 12 week period to work out a percentage of travel that relates to work use.  With this method all receipts and invoices must be kept during the year.

The second change is that the Net Medical Expenses Tax Offset will not be available in the 2016 tax return unless the expenses relate to aged care or disability aids.  This will affect a large number of families, people with health problems and the elderly as medical and dental expenses can mount up over the course of 12 months.

If you would like to know what can and cannot be claimed for your own specific circumstances, then book an appointment with a tax expert at Sothertons Gladstone. Call 4972 1300 to book and receive a discounted rate in July and August!