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Tax Relief for Natural Disaster Victims from the ATO

natural disaster

You might think you won’t catch a break when it comes to taxes.

The devasting effects of natural disasters interfere with your daily life and responsibilities. Earlier this year, the North Queensland natural disaster led to flood-wrecked homes and cattle losses amounting to over $1 billion; according to the Insurance Council of Australia.

Here’s important information you need to know when it comes to facing a natural disaster.

What’s a natural disaster?

First off, the ATO defines a natural disaster such as a cyclone, flood, bushfire, or storm. The ATO determines the affected areas by postcodes who receive assistance from the Disaster Recovery Funding Arrangements (DRFA). Any additional postcodes will be added once damage assessments have been finalised.

Click here to view the affected postcodes for the North Queensland disaster.

Otherwise, contact the ATO directly by phoning them at 1800 806 218 if you or your business is affected by a natural disaster outside of the postcodes.

Need more time?

Above all, the ATO knows that taxes are not your priority following a natural disaster. This means that they give you more time to lodge your return, pay, and respond to fulfill your tax obligations for individuals and employers.

For example, they allow the following: Read the rest of this entry »

New 2017 Australian Tax Offsets!

Tax offsets are coupons from the ATO.

When we go grocery shopping, it makes sense to bring as many coupons as we can to lower how much we pay. Wouldn’t it be great if we could do the same for our taxes? Well, you can! Tax offsets are coupons from the ATO since they help to lower the amount you owe to the ATO. You might be able to qualify for more than one offset. Let us help you lower your tax due and determine which tax offsets are beneficial to you.

 

How do I qualify for an offset?

Read the rest of this entry »

10 Australian Tax Offsets To Claim in 2016

Want to pay less in tax but don’t know how to? We’ll help you out.

There are a few different elements of your tax return that can contribute to reducing how much you owe. Tax offsets are one of those. Alone, they will not get you a tax refund. However, offsets can decrease your tax payable to zero.

Let’s talk about a few that should do the trick for you.

 

Do you earn less than $66,667?

The low income tax offset (LITO) could be right for you. Although the tax-free threshold applies to everyone, this offset takes it a step further to help out those earning less than $66,667.

The following rates apply to Australian residents over 18 years old for 2015-2016:

  • If your taxable income is $0-$37,000 then your offset amount will be $445.
  • If your taxable income is between $37,001 and $66,666 then your offset amount will be $445 less 1.5% of excess over $37,000.

 

Do you have private health insurance?

You may qualify for the private health insurance rebate. After lodging your tax return, the ATO will determine how much of an offset they will grant you. Once this determination is made, you’ll be able to choose whether you would like to receive that amount:

  • via your tax return with the ATO; or
  • via a reduced premium.

This rebate is based on your age and income level. The ATO provides a private health insurance rebate calculator on their website to work out how much of a rebate is available to you.

 

Do you live in a remote area?

Take a look at the zone tax offset. To be eligible for this offset, you’ll need to have lived or worked in one of the following for at least 183 days:

  • Zone A
  • Zone B
  • Special Area

Read the rest of this entry »