S.O.S Accounting - Tax Tips

Tax Tips


Family


I have married during the year. What effect does this have on my tax return?

If you married during the year it may mean you can claim a rebate for your spouse and/or a Medicare reduction, depending on your spouse's income. You will need to know the taxable income of your spouse before and after marriage. If you wish to claim the Family Tax Benefit, then you will need to know your spouse's income and lodge the form with this information included.


I haven’t lodged my 2006 tax return and believe that I was entitled to claim Family Tax Benefit for that year. Am I too late?

No. You can still lodge your return and make a claim for FTB for 2006. You will need to lodge your return by 30th June, 2008 or you will not be able to make an FTB claim for that year. Taxpayers have two years to lodge a tax return if they intend to claim FTB or receive a top-up payment. The deadline for the making an FTB claim in the 2007 tax return will be 30th June, 2009.


Can I claim for the maintenance I pay my ex wife for my children?

No. Maintenance payments are not claimable.


Can I claim anything for the cost of my children's education?

No. Child education costs are not a deduction for tax purposes.


I have incurred Child Care Expenses over the last couple of years. What do I have to do to claim the 30% Child Care Tax Rebate?

If you incurred approved child care expenses in the 2006 income year and qualified for Child Care Benefit from the Family Assistance Office, you may be able to claim the 30% Child Care Tax Rebate on your 2007 return. You will receive a letter from the FAO giving the details that you require to make the claim. If the rebate is greater than your tax liability, the excess can be transferred to your spouse. The rebate is limited to $4096 per child for that year.

If you incurred approved child care expenses in the 2007 income year, you will not have to wait until next year. The amount of Child Care Tax Rebate that you are entitled to for 2007 will be received as a direct payment from the Family Assistance Office after September, 2007 following the lodgement of your 2007 tax return. The rebate for 2007 is limited to $4211 per child.


What is the Baby Bonus?

The aim of this was to assist families with children with the cost of raising children. This refund pays back to mothers the tax paid on the income in the year prior to the birth of their child.


The bonus is available to families, who had a baby or gained legal responsibility of a child after 30 June, 2001 and before 1 July, 2004. It has since been replaced with a Maternity payment for families having a baby or adopting a child. The Maternity payment can only be claimed directly from the Family Assistance Office.

-Can only be claimed through the Tax Office

-Can only be claimed for the first child born in the period 1 July, 2001 to 30 June, 2004

-Available until that child turns 5 years of age

-Paid as a refundable tax offset up to a maximum of $2500 per annum.