There have been a couple of major changes this year that are important and can be claimed on the 2009 return:

Education Tax Refund (50%)

The Education Tax Refund (ETR) is a new Tax Offset that helps eligible families and independent students secondary school education.

You will be eligible if during 2008/2009

  • You had a child at primary or secondary school
  • Eligible for Family Tax Benefit Part A
  • Paid for eligible education expenses
  • Independent students can also claim

Amount:
Claim up to 50% of eligible expenses up to the limit

  • up to $750 for Primary - refund up to $375
  • up to $1,500 for Secondary - redund up to $750
Eligible Expenses Ineligible Expenses
Purchase, lease, hire, repairs & running costs of:
  • laptops & computers
  • educational software
  • internet connections
  • computer peripherals
  • books & stationery
  • tools for trade courses
  • school fees
  • school uniform expenses
  • excursions
  • tutoring costs
  • sporting equipment
  • musical instruments
  • library fees
  • school building levies
  • school subject levies
  • donations
  • tuch shop expenses
  • waiting list fees
  • transport
  • membership fees
  • computer games & consoles etc.

Please keep receipts and calculate eligible education expenss before coming in to get your 2009 return completed.


Investment Allowance for Business (50%)

The investment allowance for business has been raised from 30% to 50%.

The tax break provides an additional tax deduction for the cost of depreciable business assets.

Minimum Investment:

  • Small businesses … $1,000 (turnover under $2 million)
  • Other businesses … $10,000

Deduction amount:

  • Small businesses … 50%
  • Other businesses … 10 - 30%

Conditions apply but the deduction includes new motor vehicles and has been extended to 31/12/09.

Other issues

Maximum deductable super contributions allowed will drop by 50% from 30/06/09.

  2008/2009 From 01/07/09
Under 50's $50,000 $25,000
Over 50's $100,000 $50,000

Anybody that wants the higher deduction needs to have the funds paid by 30/06/09.

The 9% superannuation guarantee payment for employees needs to be paid by 28/07/09.
Payment after that day will incur a penalty.

Receips

While the chances of getting an audit are around 1%, the consequences can be expensive, so please make the effort & keep all receipts, bank statements & credit card statements.

* Disclaimer: nothing in this newsletter constitutes advice. If you require specific advice on your situation, please phone our office for an appointment and a confidential discussion of your affairs.

 

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