You must include rental income from overseas properties in your Australian tax return.

This income is the full amount of rent and associated payments you receive or become entitled to when you rent out your property. It doesn’t matter whether it’s paid to you or your agent.

If you receive associated payments in the form of goods and services, you’ll need to work out their monetary value for your Australian tax return.

Your rental income includes any assessable amounts you receive relating to limited recourse debt arrangements involving your rental property.

If you have paid tax in another country on your rental income, you can claim a foreign income tax offset in your Australian tax return.

Source: https://www.ato.gov.au/individuals/international-tax-for-individuals/investing-overseas/rental-income-from-overseas-property/

You can claim a deduction for expenses you incur in managing your own tax affairs, including:

• preparing and lodging your tax return and activity statements
• travel, to the extent that it is associated with obtaining tax advice – for example, the travel costs of attending a meeting with a recognised tax adviser
• appealing to the Administrative Appeals Tribunal or courts in relation to your tax affairs
• obtaining a valuation needed for a deductible gift or donation of property or for a deduction for entering into a conservation covenant.

Expenses relating to preparing and lodging your tax return and activity statements include the costs of:

• buying tax reference material
• lodging your tax return through a registered tax agent
• obtaining tax advice from a recognised tax adviser (a registered tax agent, barrister or solicitor)

You generally incur the fees in the year you pay them.

Source: https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/other-deductions/cost-of-managing-tax-affairs/

Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent.

The global economy is expanding at a moderate pace, with some softening in conditions in the Asian region, continuing US growth and a recovery in Europe. Key commodity prices are much lower than a year ago, reflecting increased supply, including from Australia, as well as weaker demand. Australia’s terms of trade are falling.

The Federal Reserve is expected to start increasing its policy rate over the period ahead, but some other major central banks are continuing to ease monetary policy. Volatility in financial markets has abated somewhat for the moment. While credit costs for some emerging market countries remain higher than a year ago, global financial conditions overall remain very accommodative.

In Australia, the available information suggests that moderate expansion in the economy continues in the face of a large decline in capital spending in the mining sector. While GDP growth has been somewhat below longer-term averages for some time, business surveys suggest a gradual improvement in conditions in non-mining sectors over the past year. This has been accompanied by stronger growth in employment and a steady rate of unemployment.

Inflation is low and should remain so, with the economy likely to have a degree of spare capacity for some time yet. Inflation is forecast to be consistent with the target over the next one to two years.

In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending. While the recent changes to some lending rates for housing will reduce this support slightly, overall conditions are still quite accommodative. Credit growth has increased a little over recent months, with credit provided by intermediaries to businesses picking up. Growth in lending to investors in the housing market has eased. Supervisory measures are helping to contain risks that may arise from the housing market.

The pace of growth in dwelling prices has moderated in Melbourne and Sydney over recent months and has remained mostly subdued in other cities. In other asset markets, prices for commercial property have been supported by lower long-term interest rates, while equity prices have moved in parallel with developments in global markets. The Australian dollar is adjusting to the significant declines in key commodity prices.

At today’s meeting the Board again judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate. Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand. The Board will continue to assess the outlook, and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.

Source: http://www.rba.gov.au/media-releases/2015/mr-15-23.html

In the 2015–16 Budget, the Government announced that Australians who have a Higher Education Loan Programme (HELP) debt and are residing overseas will be required to make repayments against their debt. Collection and recovery of these repayments will be based on the current regime existing for those living in Australia. That is, an income-contingent based repayment made through the income tax system.

Overseas HELP debtors that are non-residents for taxation purposes will be required to register with the ATO through myGov and then at the end of each financial year, submit a special return declaring all their Australian and foreign-sourced income so as a compulsory repayment can be raised by the ATO and communicated to them through the same medium. Some of the key points to the new measure include:

• Applies to all existing and future HELP debts
• Legislation to commence 1 January 2016, with first compulsory repayments to be made from 1 July 2017, based on the 2016–17 income year
• Debtors to register with the ATO through MyGov. Those already overseas have until 1 July 2017 to register. Those leaving for Australia after the measure commences will need to register before they leave

Source: https://www.ato.gov.au/general/new-legislation/in-detail/other-topics/individuals/help—recovery-of-repayments-from-overseas-debtors/

In the 2015-16 Federal Budget, the government announced that it will simplify the car expense deductions for individuals. Under current arrangements, there are four methods for claiming car expenses:

• Cents per kilometre – capped at 5,000kms
• Logbook – unlimited kms
• 12% of original value
• One-third of actual expenses

To simplify the rules, from 1 July 2015 the government will abolish the one-third of actual expenses method and 12% of original value method. The cents per kilometre method (with the existing 5,000km cap) and the logbook method (with unlimited kms) will remain.

The cents per kilometre method will be simplified to use a standard rate of 66 cents per km rather than a rate based on the engine size of the car.

Source: https://www.ato.gov.au/general/new-legislation/in-detail/direct-taxes/income-tax-for-individuals/simplify-the-car-expense-substantiation-methods/

In the 2015–16 Federal Budget, the government announced that it will exclude ‘fly‑in fly‑out’ and ‘drive‑in drive‑out’ (FIFO) workers from the Zone Tax Offset where their normal residence is not within a ‘zone’.

Currently, to be eligible for the Zone Tax Offset, a taxpayer must reside or work in a specified remote area for more than 183 days in an income year. The offset recognises the isolation, uncongenial climate and high cost of living associated with living in identified locations.

This measure will better target the offset to taxpayers who have taken up genuine residence within the zones. It will take effect from 1 July 2015.

Source: https://www.ato.gov.au/general/new-legislation/in-detail/direct-taxes/income-tax-for-individuals/zone-tax-offset—exclude–fly-in-fly-out-/

Your entitlement to a private health insurance rebate or tax offset depends on your income level. If you have private health insurance:

• the amount of private health insurance rebate you are entitled to receive is reduced if your income is more than a certain amount
• we will calculate the amount of private health insurance rebate you are entitled to receive when you lodge your tax return

You can claim your private health insurance rebate as a:

• premium reduction, which lowers the policy price charged by your insurer
• refundable tax offset through your tax return

This may result in you receiving a tax offset or a liability, depending on:

• how you claim your rebate
• the level of rebate you have claimed for your policy
• your income for Medicare levy surcharge purposes

Source: https://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-and-rebates/Health-insurance/

During the financial year you’ll receive documents that are important for doing your tax, such as payment summaries, receipts, invoices and contracts.

Generally, you need to keep these for 5 years from when you lodge your tax return.

Records you need to keep include:

• payment summaries from payers, including your employer and the Department of Human Services
• statements from your bank and other financial institution showing the interest you’ve earned
• dividend statements from companies
• summaries from managed investment funds
• receipts or invoices for equipment or asset purchases and sales
• receipts or invoices for expense claims and repairs
• contracts
• tenant and rental records.

If your total claim for work-related expenses is $300 or more, you must have written evidence to prove your claims.

If you acquire a capital asset – such as an investment property, shares or managed fund investment – start keeping records immediately because you may have to pay capital gains tax if you sell the asset in the future. Keeping records from the start will ensure you don’t pay more tax than necessary.

Your documentation must be in English, unless you incurred the expense outside Australia.

Source: https://www.ato.gov.au/Individuals/Income-and-deductions/Records-you-need-to-keep/

Small businesses can use the simplified depreciation rules as an alternative to the uniform capital allowances (UCA) rules to work out deductions for most depreciating assets.

Business means the individual, partnership, company or trust that carries on the business activity.

Small business means a ‘small business entity’, which is an individual, partnership, trust or company with aggregated turnover of less than $2 million.

New laws have passed that allow small businesses with an aggregate turnover of less than $2 million to immediately deduct assets they start to use or install ready for use, provided the asset costs less than $20,000. The general small business pool will apply to depreciating assets costing $20,000 or more. The measure will apply to assets acquired from 7.30pm (AEST) on 12 May 2015 until 30 June 2017.

Assets to which these rules apply

• Some assets are excluded from the simplified depreciation rules. If you choose to use the simplified depreciation rules, you must use them to work out deductions for all your depreciating assets that the rules apply to.
• If you have non-business income, such as salary and wages, you will also claim a deduction for depreciating assets you use in earning your employment income under these simplified depreciation rules.
• Where you can claim a goods and services tax (GST) credit for a depreciating asset, you must deduct the amount of the GST credit from the asset’s adjustable value before working out the deduction for depreciation.

Source: https://www.ato.gov.au/Business/Small-business-entity-concessions/In-detail/Income-tax/Simplified-depreciation-rules/

Small businesses with an annual turnover of less than $2 million may be able to access a range of tax concessions. This applies whether you operate your business as a sole trader, partnership, company or trust.

To qualify, you’ll need to check whether your business is a ‘small business entity’ for the year in question. In general, to meet this requirement:

Your aggregated turnover is less than $2 million. Aggregated turnover is the sum of your gross income or proceeds (rather than your net profit) for an income year. It includes the annual turnover of any entity you are connected with or that is an affiliate of yours at any time during that income year. It doesn’t include any goods and services tax (GST) amounts you have charged on your sales.

If you are not a small business in an income year, you may still be eligible for the CGT concessions (if you have net assets of $6 million or less), and the FBT car parking exemption (if your total ordinary income plus statutory income is less than $10 million).

Source: https://www.ato.gov.au/Business/Small-business-entity-concessions/