rab

My wife and I have been in Oz for 18 months, worked for 11 months, my wife has worked over a year.

Now it is time to sort the tax and I haven't a clue what I can and can't declare / claim.

We both work and have some money tied up in beef cows, theer should be income next year - hobby farm basis only - we both also work from home sometimes and want a new PC. I pay tax just into the top band, my wife is in a lower band.

I have enquired about salary scarifice to buy the PC but there are big overheads to pay like a $200 a year fee. I also want to contribute additional amounts to my superannuation here but also have concerns that my UK pension (contributed 19 years) will just freeze and effectively decline in value. Is this correct?

I am so confused and need help. Where should I go? Someone recommended H & R Block. Are they any good or can I just spend the time instead on the ATO website and get things sorted?

Everyone at work knows what to do but I don't. I get snippets of advice but need to understand the bigger picture.

Have you been in the same position and can you advise?

ABCDiamond

The ATO website will send you round in circles.

Some of these "Tax agents" may be good others not so good, depending on who you get to do the work, and give advice. It can take just a few weeks training to be employed by some of them, but a "proper" tax accountant needs years of training before being licensed.

You need to ensure that whoever you actually see, and that does the work, has their own tax licence, and is not just any employee.

For example; I am NOT a registered Tax accountant, but i've done many Tax Returns as an employee, even before I really knew what I was doing :scared:

Megalania

Your most time critical decision is how much salary to sacrifice to super. I always make the employer super contribution for myself before June 29 to be sure but I think if the contribution is made before July 31 it can be counted in the current financial year ending 2005 June 30.

You would only make an employer super contribution if it is tax effective - and that requires knowledge of your taxable income and your current financial year super contributions to date. Only make personal ("undeducted") contributions if you have spare cash you will not need until retirement - it is not tax effective if from after income tax income.

hevs

We tryed doing it on line last year and as ABC says it sent us round in circles.

We saw a local person and it cost $60, they "saved" us heaps.

However your circumstances are very different. Surely there must be some sort of "farms" specialist" type of accountant in the area?? Ask other people down the pub, they're sure to know Goodluck.

Alan Collett

- A phrase NOT to use if you are intending to claim a tax deduction ... "hobby farm basis" ...

- You have retained a UK pension fund: are there tax issues arising under the Foreign Investment Fund Rules?

- H&R Block? They have their place in the market, but I'm not convinced they are best for migrants who can have a fair amount of baggage tax-wise.

- If you want the contact details of one of my tax partners who I'm sure would be happy to have an initial freebie discussion please send me a PM or an email (alan - at - gomatilda- dot - com).

Best regards.

rab

Thanks for the responses. I think we are already decided that we are hobby farmers not real farmers and that means we can earn money up to a certain level ($20,000 ish I think) and can't claim back GST on say, animal feed but can accept the profits but as I said pay full tax on supplies or stock etc.

The super stuff I think I can sort probably but as for the salary sacrifice stuff and making sure we claim all we can claim, well, I am confused and lost.

Maybe will try the local accountant.

Any other ideas / experiences appreciated. My UK Inland Revenue tax return was a piece of piss by comparison!

gdcollectables

Hi rab

there's a guy called Dougie here in Adelaide, he's an expat too:

[email protected]


Haven't tried him yet, though, as we've only been here 8 mths!

Good Luck

hevs

I think you still have to do an end of year tax return though Allan???

Hels

Yes, they will. I think what they meant as they werent here last year they havent used a Tax Agent. You cant do your tax this year until July so I am sure thats when they meant they would be using him...

I think....

ABCDiamond

A good time time mention this:

Individual Tax returns must be lodged with the ATO by the last day of October.

The ATO site should be geared up for 2005 returns within the next week.

The Tax year is July 1st to June 30th

If your return is being done by a Registered Tax Agent, they do get extra time allowances to lodge them later, but as most people get tax refunds, the earlier you lodge the better.

But......... "If you did not go to a tax agent last year—or you will be going to a different tax agent this year—make sure that you see them before 31 October."


Read THIS if you think you do not need to lodge a return.

gdcollectables

Hi

I'm sorry if I confused everyone!

What I meant was - we haven't tried Dougie yet, as we were not here in July last year; but we will be doing tax returns this year!

jjonboy

personally i think as ever, we do what we are trained in best. And especially as the advice is tax deductable i'd strongly advise professional advice....

Allen Collett has been highly recommended many times on here. There will be many more recomendations to be heard in the marketplace though.....??