I am a New Zealander working in Australia and wondering if I can claim back my tax

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Q. Hi Josie, I was sitting on the tractor working away the other night and I was listening to you on the radio. I am from NZ, currently working here for a while.

I was wondering how I go about claiming tax back? I have also worked here in the past (a couple of years ago) and am wondering if I can claim anything from that work?

Please help as it is hard to find information on this. Your time is very much appreciated.

A. Thanks for the question and what an interesting job?   Questions on taxation of non-residents should really be directed to an accountant as they just love interpreting the Tax Act.   Nevertheless, I have done a little bit of research on the Read more

How Do I Minimise Capital Gains Tax?

Q. In August 2004 I bought an investment house with the plan to live in it when I retire. (I’m 55 yrs old in August 2008).

I own my existing home and the investment house has been rented since the day I bought it. My plans have since changed and I wish to sell the investment house to fund other activities in my retirement.

I was planning to sell my present home around Christmas 2008, then live in the investment house until I sell it around July/August 2009.

Is there some strategy I could put in place to minimise Capital Gains Tax when I sell the investment house?

Josie’s answer: As you would be aware, your family home which is called your main residence in the ATO’s Capital Gains Tax Guide, is exempt from capital gains tax (CGT)

However, it is only possible to nominate one dwelling as your main residence. In your case, the dwelling that you describe as ‘your present home’ will be exempt from CGT when you sell. Unfortunately, a portion of your investment property will be subject to CGT. Read more

I want to save tax and increase my family’s wealth.

Q. I work in the mines, income $97,000 +/- a bit. Have a salary sacrifice vehicle, a wife (at home mum) with 4 kids 7 years old and under.

My Home is valued at around $450,000 owing $340,000, no credit cards and a personal loan $45,000 owing $35,000 (extensions and shed). About $10,000 is in various shares which I have bought over the years and $100,000 in super.

I would like to save some of the tax $’s which I pay and enter the investment property market (negative gearing) or another income generating project to get my family in a better Financial position.

With the way property is going and the expected increase over the next years. However My lender (suncorp) says I don’t have enough security / cash flow to purchase A rental property. I have also heard about other firms (RPM Nation wide)

Where by using a rental income to reduce your principal home loan using offset accounts and capitalizing the interest for a larger tax advantage.

Would you be able to suggest an appropriate strategy for my family to increase our wealth?

Josie’s answer - Thanks for your question. Not sure if you are going to be doing cartwheels once you read my advice. Read more

Do Disability Pensioners need to lodge tax returns?

Q. Hello, Do you have to lodge A tax return if you are on the Disability pension, I am unsure as this is my first full year on the pension. I have no other income.
Kind regards
Teresa

Josie’s Answer: Teresa thanks for posting a question on www.askjosiekay.com. According to the Australian Taxation Office website, you probably don’t need to lodge an income tax return, if you are on the disability pension and have reached aged pension age.

You can read more about it here.

Basically, they are saying that if you received a pension, allowance or payment listed below and your taxable income was MORE THAN the following relevant amounts:

• $21,637 – if you were single, widowed or separated at any time during the year
• $20,710 – if you had a spouse but one of you lived in a nursing home or you had to live apart due to illness
• $18,330 – if you lived with your spouse for the full year Read more
  Filed Under: Tax Problems
  Tagged: Disability Pension, Tax

  How much Capital Gains Tax do I have to pay?

  March 25, 2008 by Josie Kay · Leave a Comment 

  Q. Hi Josie just a quick question. In 2001 my wife and i purchased our home and 50 acres for $198000.We have just sold half the land alone for $218,000 leaving us the house and 25 acres. We own the place outright and want to know what capital gains we would have to pay and how we can reduce this if we can. I am employed and make around $52000 and my wife works part time earning around $10000 and we have 2 children aged 13 and 10.Thank you for your time Tim

  Josie’s answer: Hi Tim. Capital Gains Tax (CGT) is a very complex area of taxation. Basically, the family home is tax free, but only if the land area is less than 2 hectares.

  Consequently, the half that you sold will be subject to capital gains tax. Determining how much is very tricky as difficulties arise in determining the value of the land in excess of the 2 hectares which is exempt.

  For example, a qualified valuer may value the land that your family home is sitting on to be worth significantly more than the balance (some of it could be swamp land). Therefore, I am not really in a position to estimate your potential tax liability. For your info, I have included a link to the ATO website which covers this matter Guide to capital gains tax 2005-06. Read more

  Filed Under: Tax Problems
  Tagged: Capital Gains Tax

  I earn $55K. Do I have to pay the Medicare Levy Surcharge of 1%

  March 16, 2008 by Josie Kay · Leave a Comment 

  Mike’s Question -

  Hi Josie, Great show yesterday…Unfortunately I didn’t get a chance to call the show (I was driving) However, this was the question I was going to ask, “If I earn $55K do I have to pay the Medicare Levy Surcharge?”

  Josie’s answer: Thanks for listening to our show Mike and good on you for not talking on your mobile while driving. You can always drop me a line later here at askjosiekay.com. (Ask me a Question)

  Now to your question - Assuming you are single, if you don’t have private hospital cover through private health insurance, you will be have to pay an extra 1% surcharge (on top of the 1.5% that you already pay).

  If you are married, you won’t have to pay if your taxable income (plus reportable fringe benefits) is $100K. It increases to $101,500 if you have 2 kids, plus $1,500 for each additional child. Read more

  Filed Under: Tax Problems
  Tagged: medicare levy surcharge