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Taxable Income

Taxable Income
Questions about income and inheritance tax? Read H&R Block's FAQs for answers. If you can't find what you're looking for, call us at 13 23 25 today.
Australian businesses with an annual turnover of $75,000 or more are required to register for GST. If your business has a lower turnover you are not required to register, but you may do so if you wish. You will only be required to charge your customers GST if you are registered. Your local H&R Block office can assist you with your application to register for GST.

Call 13 23 25 or use our office locator to find your nearest H&R Block office and book an appointment online.
Most Australian businesses can claim fuel tax credits for running machinery, plant, equipment and heavy vehicles used in running that business.

To be eligible to make a claim the business must be registered for GST and the claim should be made on the Business Activity Statement (BAS) that is required to be lodged.

The amount that can be claimed will depend on the type of fuel and what it is used for. Fuel tax credits are not available where alternative fuels (e.g. LPG) are used.
If your turnover is less than $50 million dollars, you would be able to access a number of small business concessions including:
  • income tax concessions
  • excise concessions
  • Goods and Services Tax (GST) concessions
  • Pay As You Go (PAYG) installment concessions and
  • Fringe Benefits Tax (FBT) concessions.
The $50 million turnover threshold applies to most concessions, except for:
  • the small business income tax offset – which has a $5 million turnover threshold
  • the capital gains tax (CGT) concessions – which have a $2 million turnover threshold.

Provided that you satisfy the eligibility criteria, you will be able to claim a deduction for the superannuation contributions you have made to a complying superannuation fund or retirement savings account.

To do so you must be fully self-employed or no more than 10% of your assessable income (including Reportable Fringe Benefits and Reportable Superannuation Contributions) is from an employer.  You must also have first notified your superannuation fund of your intention to make the claim and received a confirmation.

You may be eligible for the superannuation co-contribution if more than 10% of your total assessable income is from running that business, eligible employment or a combination of the two.

Investment income is not eligible income. If you claim any of your superannuation contributions as a tax deduction, only the amount that you do not claim will be eligible for the co-contribution.
If your turnover is less than $50 million you will qualify to be able to claim certain eligible pre-paid expenses in the year they were paid.

Some examples of prepaid expenses that can be claimed in the year they are paid are rent, insurance and subscriptions to professional associations.

Eligible expenses will be payments that are made for periods of 12 months or less and that the period covered ends in the next income year. Your pre-paid rent qualifies because the period it covers does not exceed 12 months and that period will end before the end of the next income year. The whole amount will be claimable on your tax return this year.

At H&R Block nothing is too complicated. We can assist you with any number of tax questions. Find an office near you and book an appointment online or call 13 23 25.

If a taxpayer carries out all or part of their employment activities from home and has an office set aside to do the work, some portion of the running expenses can be deducted. A diary should be kept for a minimum of 4 weeks stating hours the office was used for work related purposes.

From 1 July 2014, the Commissioner’s rate of 45 cents per hour (increased from 34 cents per hour allowed in the 2014 year) can be claimed for the hours the home office is used. Only running expenses (electricity, heating and depreciation of office equipment) can be claimed for home office unless the home is being used as a place of business.

Where a home is a place of business (and is easily identified as such – for example a separate entrance, signage, clients/customers coming to set area of your home etc.), deductions can be claimed on occupancy and running expenses including:

  • mortgage interest
  • rent
  • house insurance
  • council rates
  • insurance
  • repairs
  • cleaning
  • pest control
  • maintenance
  • decorating
  • telephone
  • heating
  • lighting.

Find your nearest H&R Block office and book an appointment online or call 13 23 25.

If you believe this is incorrect, you should contact your bank to verify the income details for your accounts. The bank should notify the ATO in writing if this information is not correct.

You have 28 days to correct this information. However, if you have omitted the taxable income, you will not need to contact the ATO. They will amend your return and send you a new assessment requesting payment of the additional tax, a general interest charge and, in some cases, penalties. If you require assistance with your communication with the ATO, H&R Block can help.

A Living Away From Home allowance is paid by employers when they require an employee to work in an area that is different to their normal workplace and the employer pays the costs to the employee for living away from home.

For example, I work and live in Melbourne and after a few months the company requires me to go to Regional NSW for a few months to do some work there.  They pay me an allowance for the costs of living in regional NSW because they have requested me to work there for a time. 

This is not taxable income, so I do not need to declare it in a tax return.  It is an allowance paid by an employer to an employee and is not subject to tax by the employee, provided it is paid in accordance with the tax office guidelines.  No expenses can be claimed against this allowance.

From 1 October 2012, the LAFHA continued to be taxed to the employer under the Fringe Benefits Tax system.  However, the employer is able to reduce the Fringe Benefits Tax payable on the amount paid to the employee, for a maximum period of 12 months, provided the employee meets the following conditions:

  • maintains a home in Australia for their own personal use and enjoyment at all times whilst required to live away from home for their work; and
  • provides a declaration relating to living away from home.

If these rules are satisfied, the employer is able to reduce the taxable value of the LAFHA by:

  • the amount of the employee's actual substantiated accommodation expenditure while living away from home; and
  • the amounts incurred by the employee for food or drink costs while living away from home, less a statutory amount if applicable.
An inheritance is not taxable unless you are advised by the executor that a part is taxable. However, if you invest the income from the estate, then any earnings will be taxable.

You are wise to be cautious. Not all schemes are genuine and often promise large tax deductions that they say will be allowed by the tax office. It is wise to check out any investment scheme before putting your money into them. 

If you invest in a risky tax scheme, you could lose some or all of your money, and you may have to pay back any refunds due to over-claimed deductions as well as interest and penalties. 

Before investing in any tax scheme it is advisable to seek independent advice from a professional advisor and/or the tax office. Information and warnings about investment schemes and scams can be found on the Australian Securities and Investment Commission and the Australian Competition and Consumer Commission SCAMwatch website.

All income must be declared by each recipient on the same basis as the accounts are held. Interest from a joint account must be split 50/50. You cannot declare it all on your wife’s tax return and doing so could lead to an ATO audit.

Yes she will have to lodge a return. Prior to the 2012 income year, a minor could have earned up to $3,333 from investments before any income tax would be payable. However, from 1 July 2011, the Government removed the ability of minors to access the low income rebate for unearned income (such as interest, dividends, rent, royalties, trust distributions etc.). This means that a minor who earns over $416 in unearned income must lodge an income tax return.

Personal exertion income (such as salary & wages) will still have tax payable on it, but that tax payable can be reduced by the low income tax offset. All unearned income will not attract the low income rebate and be taxed at minors’ rates.

You do not have to lodge a full tax return. You can complete the Refund of Franking Credits for Individuals form which can be lodged by telephone or mailed to the ATO.

In most cases overseas pensions are taxable and, if you are an Australian resident, you will need to include the amount in your tax return. There are a few exceptions to this rule. Please call H&R Block on 13 23 25 if you are not sure.

All income must be declared. This is because the tax office needs to determine what tax rate applies to your other earnings for the year. You may be entitled to an offset to ensure that no tax is payable on your benefit.

You can access the information required from Centrelink online services, Express plus mobile apps and at self-service terminals at Dept. Human Services Service Centres. H&R Block can also look up the required information for you.

You will only have to pay tax on any earnings you make from the time that you moved to Australia. If the money that you brought with you earns interest in a bank account you will have to pay tax on the interest.

The income will be taxable unless you have worked overseas continuously for more than 90 days and are working on a specific Australian government project or deployed overseas as a member of an Australian government agency. In these cases the income will be tax exempt.

If your overseas income is not exempt, you will need to declare the income on your Australian tax return and may be entitled to a foreign income tax offset for any foreign tax you paid on that income.

We can assist you with any number of tax questions. Find an office near you and book an appointment online or call 13 23 25.

In March 2012 legislation was passed and Tax Laws Amendment (2012 Measures No. 1) Bill 2012 now denies any deduction for study expenses for full-time students who are in receipt of Youth Allowance, Austudy or Abstudy.   Disallowing a deduction for expenses incurred in gaining or producing a rebatable benefit recognises that taxable government assistance payments are effectively tax-free and individuals should not be able to receive an additional benefit by way of a tax deduction against their assessable income for any expenses they incur in qualifying for the payment.

If you make an advance payment of at least $500, or enough to clear the debt entirely, you will receive a 5% discount on that payment. It is a good idea to make the payment before 1 June when the annual indexation is calculated. The indexation rate for 2015 is 2.1%. You should be aware that if you’re HELP repayment income is above $53,345 and you still have an outstanding HELP balance you may also be required to make a compulsory payment when you lodge your 2015 tax return.

Although it is the government’s intention to remove the bonuses, at the time of writing the enabling legislation had not been approved by parliament.

A new benefit was made available from the 2009 income year onwards which reduces the compulsory HELP repayment or accumulated HELP debt for eligible graduates in science, maths, nursing (including midwifery) or early childhood education.

The reduction amounts are indexed annually, and must be applied for after the end of the financial year. There is a fixed claim period of 2 years from the end of the financial year.

The benefit was designed to encourage maths and science graduates to work in specified occupations and early childhood teachers to work in specified locations. The benefit must be applied for each year and forms are available from the tax office or can be downloaded from www.ato.gov.au. Details of the qualifying occupations and locations can be found at www.studyassist.gov.au

In the 2014 Budget the Government announced that the HECS-HELP benefit scheme will end on 30 June 2015. Graduates would have until 30 June 2017 to claim HECS-HELP benefit for employment prior to 1 July 2015.

After the Anstis case in November 2010 a deduction was allowed for job seeking expenses for the 2007, 2008, 2009 and 2010 years for taxpayers in receipt of a Newstart Allowance or Youth Allowance who were job seekers.  In the 2011 year expenses were again allowed for those in receipt of a government Newstart or Youth Allowance payment for expenses directly related to seeking paid work. All expenses had to be fully substantiated and taxpayers must have kept written evidence to prove the expense has been incurred. This means receipts MUST have been kept. However, in March 2012 legislation was passed now the Government denies any deduction for job seeking expenses by those who receive Newstart or Youth Allowance.

The costs associated with seminars are tax deductible provided that they relate to your current income producing activities.

At H&R Block nothing is too complicated. We can assist you with any number of tax questions. To find an office near you just call 13 23 25 or click here.

There is a limit to the amount of money you can voluntarily contribute into your super fund on a concessional basis. Superannuation contribution limits operate to limit the tax benefits available each year.

Making contributions over the limits results in additional tax payable, and excess concessional contributions are counted towards the non-concessional cap. 

Concessional contributions are essentially those contributions which are tax deductible, and include employer contributions and personal contributions claimed by the self-employed. 

The current concessional contributions cap, regardless of age is $27,500 per annum. 

If you are older than 67 you will need to meet a work test to contribute to super in most cases. You need to work for at least 40 hours during 30 consecutive days at any time during this financial year to make tax deductible and non-deductible contributions to super.

Non-concessional contributions are those made from after-tax income. There is no contributions tax applied when they are contributed to the super fund.Once in the fund, the normal fund tax rates apply to earnings

The non-concessional contributions cap is $110,000. It then follows that  $330,000 can be contributed over the three-year fixed period under the 'bring forward rule'.

If you have a total superannuation balance of close to $1.6 million, you are only able to access the bring forward rule for the number of years that would bring your balance to $1.6 million. Once you trigger the bring forward rule and your balance reaches $1.7 million you can’t make any further non concessional contributions even if you still effectively have not fully used up the remaining of the bring forward cap triggered.

If you triggered the bring forward rule before 2016/17 but the full $540,000 was not contributed, you will be limited to a transitional bring forward cap.

If you are over the age of 65 you cannot utilise the ‘bring forward’ rule, even if you meet the work test.

Amounts paid into superannuation by your employer to meet the Superannuation Guarantee obligations and amounts paid under a salary sacrifice arrangement are called concessional contributions.

Salary sacrificing into super involves asking your employer to redirect a portion of your pre-tax pay into your super fund. These contributions are taxed at a rate of 15% in the super fund. For most, this is a lower rate of tax than their marginal tax rate.

The concessional contributions cap per annum, per individual, is $27,500. If the total of your employer super guarantee contributions and salary sacrifice contributions go over this cap, you may have to pay extra tax.

Check your employment agreement or speak with your employer before arranging salary sacrifice into super. 

If you have salary sacrificed into super, the amount contributed is included in the reportable employer superannuation contributions amount shown on your PAYG payment summary. Also included are any superannuation contributions for which a tax deduction has been claimed. This means that any entitlement you have to any benefits from Centrelink or the Family Assistance Office that are subject to an income test will take into account those amounts.

It also contributes to the calculation of any Child Support payments and is used to determine your liability to such things as the Medicare levy surcharge or repayments of HECS-HELP debts. They may also impact on any tax offsets that you are entitled to claim on your tax return.

People who have reached 60 no longer pay tax on superannuation income streams (pensions or annuities) that are paid from a taxed fund. A taxed fund is one where contributions tax was paid on the contributions made by your employer into your super fund on your behalf.

Contributions tax would also have been paid for contributions made under a salary sacrifice arrangement. Most funds are taxed funds. However, for taxpayers who belonged to an untaxed super fund, they will still have to pay tax on their superannuation income stream, irrespective of their age.

Taxpayers who are over 60 years of age (for the full financial year) and receiving a superannuation income stream from a taxed fund no longer receive a PAYG Payment summary.

Even if your employer is required to contribute to your super, you are now also eligible to contribute and claim a tax deduction.

Prior to 1 July 2017 you needed to be self employed to be able to claim a tax deduction for personal contributions.

Contributions that you claim as a tax deduction count towards the $27,500 concessional contributions cap, along with any contributions your employer pays. If this cap is breached, you may have to pay excess tax. However, from the 2019 year, if you have not used your concessional contributions cap for the year, the excess may be carried forward and used in a futer year (within 5 years).

If you claim a tax deduction for a contribution you have made, you are not eligible for the super co-contribution for the amount you claim.

You must make a valid ‘notice of intent to claim’ in the approved form (https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/n71121-11-2014_js33406_w.pdf ) to your super fund before you lodge your tax return or by the following June 30, whatever is earliest.

You must receive an acknowledgement from your super fund that a valid notice of intent has been received, BEFORE you claim the tax deduction.

If you make a personal contribution to super, you don’t have to claim a tax deduction. It will be treated as a non-concessional contribution and won’t be taxed in the fund. You may be eligible for a co-contribution for amounts not claimed as a tax deduction. 

If you do not tell your superannuation fund what your TFN is then the fund will be required to pay additional tax on any contributions made by your employer (including salary sacrifice amounts).

Without having your TFN recorded, your fund will not be able to accept any personal contributions that you make and the government co-contribution that you may be entitled to cannot be paid into your account.

At H&R Block nothing is too complicated. We can assist you with any number of tax questions. Find an office near you and book an appointment online or call 13 23 25.

Generally payers are required to supply a payment summary within 14 days of the end of the financial year – i.e. 14 July. If an employee ceases employment part-way through the year, one must be supplied within 14 days of receiving a written request from the former employee and the request must not be made any later than 21 days before the end of the financial year. If a former employee has been receiving reportable fringe benefits (RFB) and leaves before the end of March then the 14 day limit may need to be extended.

You probably heard about the Mature Age Workers Offset which gave an additional offset of up to $500 if you were born before 1 July 1957 and your income from working did not exceed $63,000.

Unfortunately, the government has abolished this offset and it ceased to be available as of 30 June 2014.

Taxpayers who take out private health insurance are entitled to claim a percentage of the premium as a tax offset. This can be taken as a reduced premium, a cash refund from Medicare or claimed through the tax return at the end of the income year. From 1 April 2005 premiums for health insurance policies covering people over 64 years of age have attracted a higher tax offset. If the eldest person covered by the policy is aged 65 or above the offset increases to 35%. Where the eldest person covered by the policy is 70 years or over the offset increases to 40%.

However, from 1 July 2012 the ATO introduced income testing against three income tier thresholds. Depending on your income you may receive a lesser percentage of tax offset.

At H&R Block nothing is too complicated. We can assist you with any number of tax questions. To find an office near you just call 13 23 25 or click here.

You must keep all the records, receipts and other documentation you have used to prepare your tax return. If you are claiming deductions, you must keep written evidence to verify your claims for those deductions.
If you are an individual, you must keep proper records relating to your tax affairs for at least five years from the date you lodged your tax return.
If you are a small business, you must keep proper records relating to your tax affairs for at least five years from when the business record is prepared or the transaction is completed, whichever occurs later.
If at the end of the five year period, you are involved in a dispute with the Commissioner (an audit, for example), the five year period is extended.
If you use information from your records in a later tax return, you may have to keep records for longer. So, if you carry forward a tax loss, you must keep the records until the end of any period of review for the income tax return in which the loss is fully deducted.
If you own an asset which will be subject to capital gains tax on disposal, you will need to keep records covering the entire period of ownership until 5 years after lodgment of the tax return recording the disposal of the asset.

The Medicare levy surcharge is payable where your income is over a threshold amount and you do not have adequate private hospital insurance. The threshold amount for a single taxpayer is currently $90,000 and for families with up to one dependent child it is $180,000. If your income for surcharge purposes exceeds the relevant amount and you do not have private hospital cover, you will pay the surcharge.

Income for surcharge purposes includes your taxable income, exempt foreign employment income, investment losses as well as reportable fringe benefits and reportable superannuation contributions. The private health insurance rebate and the Medicare levy surcharge are income tested against three income tier thresholds. Higher income earners will receive less private health insurance rebate or, if they do not have the appropriate level of private patient hospital cover, the Medicare levy surcharge may increase.
If you are unsure whether or not you will be liable to pay the surcharge, you should contact your H&R Block Tax Consultant on 13 23 25.

You are a temporary resident and, if your income for surcharge purposes is over the relevant threshold amount, you will be liable to pay the Medicare levy surcharge. The policy that you have is not sufficient to provide you with an exemption from the levy.

If you are an Australian resident for tax purposes, 16 years old or older and able to attend an interview at one of the participating Australia Post retail outlets, you can apply for a TFN on the web. Otherwise, you will need to complete a paper Tax file number – application or enquiry for individuals (NAT 1432) form. You can get a copy of this form by phoning the ATO on 1300 720 092, from online ordering or from one of the ATO shopfronts or selected newsagents.

Provided you have applied for a tax file number, you have 28 days to quote your tax file number to your employer.

If you are an overseas student living in Australia and have had your visa amended to allow you to work, you can apply for a tax file number (TFN) on the internet.  You will not need to provide documentation as proof of identity because the ATO will compare your personal and travel document details with those held on the Department of Immigration and Citizenship (DIAC) system. Provided the matching process is successful a TFN will be mailed to the Australian address that you provided on the application. This internet service is also available to working holidaymakers, New Zealanders who get a visa on arrival, and permanent migrants.

One of the ways you can reduce the tax you pay is by salary sacrificing in return for employment related benefits. The advantage of salary sacrificing is that your benefit is purchased with pre-tax dollars. Find out more information and tips on salary sacrificing.

If you salary sacrifice into superannuation this will attract a contributions tax of 15%. If your contributions exceed the threshold for that year, you will be taxed at a higher rate. With the new tax free threshold, as you are paying 19 cents in the dollar (plus Medicare) for any amount you earn over $18,200 this is greater than the 15% payable in contributions tax.

However, any amounts that are sacrificed into superannuation will now also be taken into account for the new income tests that determine liability to pay the Medicare levy surcharge and the entitlement to claim dependent tax rebates and pensioner tax offsets.

From 1 July 2012, if you have gone over your concessional (before-tax) contributions cap by $10,000 or less, you may receive a once-only offer to have the excess concessional (before-tax) contributions refunded to you and assessed at your marginal tax rate, rather than pay excess contributions tax.

From 1 July 2014, the concessional (before-tax) contributions cap will be indexed in line with average weekly ordinary time earnings (AWOTE), in increments of $5,000. For answers to more superannuation questions, click here.

Some people with two or more jobs or other tax income may be caught in an unintentional tax trap as a result of the new increased tax free threshold. The problem occurs even if the taxpayer and the employers do the right thing – as determined by ATO tax PAYG scales. The first job attracts the tax-free threshold while second and subsequent jobs are taxed in line with the progressive tax tables supplied by the ATO. It causes taxpayers to be, in effect, under-taxed on their ordinary earnings, which can result in a tax bill at the end of the financial year. Click for more information regarding multiple income sources or contact H&R Block and one of our Tax Consultants can assist you with this.

Since 1 July 2006 there has been a separate category for people who are temporarily living in Australia. A permanent resident is generally taxed on all income in and out of Australia but a temporary resident is exempt from paying tax on certain classes of income. People who exhibit the behaviour of a 'resident' and hold a temporary visa granted under the Migration Act of 1958 will be taxed at resident rates. Temporary residents may also be liable to pay the Medicare levy unless they are eligible to apply for an exemption.

You would be considered to be a non-resident for tax purposes because you have not settled in any one place and established a home during your stay in Australia. You may not get all your tax back when you lodge a tax return because you will be charged non-resident tax rates. This means that you have to pay tax on every dollar of your taxable income. You will not have to pay the Medicare levy though.

Non-residents pay tax on Australian source income. They pay tax on every dollar of taxable income as declared on their tax return but do not pay Medicare. Residents have to declare all income earned in and out of Australia. A tax free threshold of $18,200 (for the 2014 year) is available to them and a resident may be entitled to claim some tax offsets (rebates) that are not available to non-residents. Depending on their income, a resident may also have to pay the Medicare levy and Medicare levy surcharge.

You should lodge your outstanding tax returns as soon as possible and before the Australian Taxation Office takes any action to have you lodge these tax returns. Once they have begun any action, it could result in a court conviction. The ATO may charge a penalty of $170 for every 28 days that the return is outstanding. The maximum penalty is $850 even if you are due a refund.  In addition, the ATO will charge interest. This is called the general interest charge and is levied on any outstanding monies. H&R Block can assist you to lodge your late prior year returns.

Your return can be completed using the details from a copy of the PAYG Payment Summary, a letter from your employer detailing the information on the PAYG Payment Summary or by reviewing your pay slips for that period. If you are unable to obtain the payment summary details from an employer a Statutory Declaration would need to be completed. The detail from your PAYG Payment Summary may also be accessible by your tax consultant on the ATO Portal. Call 13 23 25 and ask to speak with a tax consultant in your local H&R Block office.

Your wife does need to lodge a return even though her income is below the tax free threshold. Any earnings that have had tax withheld, no matter how small, are required to be reported on a tax return. This is also the only way to get a refund of the tax paid.

No, you cannot do that. A PAYG Payment Summary from a past year cannot be included with the current year tax return as the income on it was not earned in the current year. It can only be included in the return for the year to which it relates. You will need to submit an amendment to last year's tax return. H&R Block can assist you to lodge an amendment.

It is necessary to complete a tax return to date of death if a return has been lodged in past years. This return, marked final, must show all income received to the date of death.

If you owe tax and lodge your return late, any amount owing will be payable on 21 November this year and a general interest charge will be calculated from then until payment is made. The ATO may charge a penalty of $170 for every 28 days that the return is outstanding. Unless you use a registered tax agent, you have from 1 July until 31 October to lodge your return. If you need an extension of time either contact the ATO or your local H&R Block for assistance on 13 23 25.

It isn't necessary to complete a return before leaving Australia unless you will not be back before the due date for lodgement of your return (31 October). If you won't be back until after that date contact the Australian Taxation Office or a registered H&R Block tax agent to apply for an extension of time to lodge.

If you married during the year you may be eligible to claim a reduction in Medicare based on your income. You will need to know the income of your spouse before and after marriage. If your spouse has earned income during the year, they will also have to lodge their own tax return. On both of your returns you will be required to disclose information about the other partner so that any entitlements you may have to certain family tax benefits can be calculated correctly.

Some taxpayers may be eligible for the Invalid and Invalid Carer Tax Offset. If your spouse is genuinely unable to work because they are an invalid or they care for an invalid you might qualify for the Invalid or Invalid Carer Tax Offset. The invalid must be receiving a Government disability payment to qualify.

Contact H&R Block on 13 23 25 to speak with a tax expert to find out whether you are affected or not.

Since 1 July, 2009 the definition of 'spouse' has changed to include same-sex partners. If you are living in a domestic situation, in a relationship as a couple, you will be entitled to claim the same family tax benefits that can be claimed by partners in an opposite-sex relationship. If you pass the relevant income and age tests you may be able to claim an Invalid and Invalid Carer Tax Offset if your spouse is genuinely unable to work because they are an invalid or they care for an invalid (the invalid must be receiving a Government disability payment to qualify). Depending on your combined income you may also be entitled to claim a reduction in the amount of Medicare levy you pay. Any other tax benefits you may be entitled to will be determined on the basis of your income, not your gender.

To work out how much CCS you’re eligible for, the following factors are relevant:
  • your family’s income
  • the hourly rate cap based on the type of approved child care you use and your child’s age
  • the hours of activity you and your partner do.

The precise calculation is complex. You should visit the Services Australia website (https://www.servicesaustralia.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get) for details.

The amount of subsidised child care you can access per fortnight applies to each child.

If your family earns $190,015 or less, you won’t have an annual cap on your subsidy but if your family earns between $190,015 and $354,305, Services Australia will cap your subsidy. This means they will subsidise your fees up to the annual cap of $10,655 per child each financial year.
You have 12 months after the end of the year to lodge your tax return so that the FOA can check that you have been receiving the correct amount. If you overestimated your income you will receive a top-up payment but if you underestimated your income they will require the over payment to be paid back.

For example, for payments received during the 2019-20 income year you will be required to lodge your 2020 tax return by 30 June 2021. If you have a partner their tax return will also have to be lodged by that date. Failure to meet the deadline could result in your payments being stopped and the repayment of amounts already received. If the tax office does not require you to lodge a tax return then you should notify the Family Assistance Office.

No. Maintenance payments are not tax deductible.

At H&R Block nothing is too complicated. We can assist you with any number of tax questions. Find an office near you and book an appointment online or call 13 23 25.

The Family Tax Benefit helps with the cost of raising children. It is therefore available for those who:

  • have a dependent child or secondary student younger than 20 years of age who is not receiving a Government benefit such as Youth Allowance
  • provides care for a child at least 35% of the time
  • meets an income test

This is the basic eligibility for the FTB, but if you would like further information, head to the Department of Human Services website.

At H&R Block nothing is too complicated. We can assist you with any number of tax questions. Find an office near you and book an appointment online or call us today on 13 23 25.

You are able to claim expenditure incurred in replacing, insuring and repairing tools of trade that you use for earning your income. If the cost of any item is more than $300, it will have to be depreciated (i.e. claimed over its effective life). The amount you can claim will depend on what receipts you have kept and to what extent you use it for income producing purposes. If you are in the situation where you are wondering what you can claim without receipts, you can claim less than $300 without proof of purchase.

If technical books, trade books or journals are necessary to fulfill your job function efficiently, the cost of their purchase is tax deductible.

Learn more about claiming self-education expenses.

A deduction is available for outdoor workers who buy sunscreen lotion, sunglasses and hats for use at work. The claim must be substantiated and apportioned for private use.

There are two different methods for claiming work related motor vehicle expenses and each have different record keeping requirements.  To use the method that ensures you the best claim it is advisable to keep a log book and all receipts for expenses (e.g. insurance, registration, repairs, services, tyres, etc.). You do not have to keep receipts for petrol as H&R Block can work that out for you using a yearly average formula. Your log book should be kept for a minimum of 12 consecutive weeks and generally it will be valid for five years unless there are significant changes in your circumstances. You also need to keep the opening and closing odometer reading for each year. 

It is not necessary for you to use the same claim method each year. The choice of method should be made on the basis of which is more favourable to you and which you have the appropriate records for. If you don’t have a current logbook or have not retained all receipts you will be limited in which method you can choose. You cannot, however, claim any car expenses if your car is salary packaged.

Expenditure on personal grooming and haircuts are generally not deductible. There are exceptions for some taxpayers involved in the performing arts field.

Compulsory uniforms are generally deductible provided they identify you as an employee of that organisation or in a specific occupation. A requirement to simply wear particular colours is not enough to make the clothing deductible (for example a waiter being required to wear black and white clothing) nor is a requirement to wear a store’s own brand of clothing (they are still conventional clothing and not tax deductible). Corporate wardrobes are also deductible if certain conditions are met. The uniform design must be registered with AusIndustry. Provided that the clothing is deductible then you may also claim maintenance costs (laundry, dry cleaning and repairs).

Learn more about claiming a tax deduction for work clothing.

Fashion clothing is not tax deductible even if your employer requires you to wear it. Because the logo is a part of the design of the clothing and does not in itself identify you as an employee it will still not be claimable.

You cannot just claim $300. You must actually incur any expense before it is claimable. Whilst you may not need receipts for expenditure up to $300 you must have spent the money and it must be relevant to your employment.

Your travel must be relevant to your job function for you to be eligible to claim a deduction for those expenses. Where this is the case, and you have the necessary documentation, you can claim the cost of transport and incidentals. If your travel involved an overnight stay you would be able to claim for meals. Travel overseas also requires you to keep travel diary.

A deduction will only be allowed if you have actually incurred a work-related expense and have the necessary documentation. Travel to and from your job is generally not claimable unless, for example, you are carrying bulky equipment. Some awards allow for a payment of an allowance even though an expense is not necessarily incurred by the employee. If a deduction can be claimed it cannot be for more than the expense that you incurred even if the allowance that you have received was higher.

You cannot claim the cost of the trip because the main purpose was to have a holiday and attendance at the seminar was incidental to this. You will only be able to claim the additional expenses that you incurred to attend the seminar. These could include the registration fee, taxi fare to the seminar, etc.

If a taxpayer carries on all or part of their employment activities from home and has an office set aside to do the work, some portion of the running expenses can be deducted. A diary should be kept for a minimum of 4 weeks stating hours the office was used for work related purposes. The Commissioner’s rate of 52 cents per hour can then be claimed for the hours the home office is used.  Only running expenses (electricity, heating and depreciation of office equipment) can be claimed for home office unless the home is being used as a place of business.

Where a home is a place of business (and is easily identified as such – for example a separate entrance, signage, clients/customers coming to set area of your home etc.), deductions can be claimed on occupancy and running expenses including:

  • mortgage interest
  • rent
  • house insurance
  • council rates
  • insurance
  • repairs
  • cleaning
  • pest control
  • maintenance
  • decorating
  • telephone
  • heating
  • lighting
  • depreciation.
Installation costs are not deductible. However, part of the rental costs are deductible where a taxpayer is required to make calls from home. Call costs would be deductible and a log of calls must be kept for a minimum of 4 weeks. Mobile phones are claimed in the same way.

Items like this that you buy for use in your job can be claimed in your return. However, since the cost of these items is most likely to be more than $300 each you will not be able to claim the full cost in one year.

It will be necessary to spread your claim over the useful life of the items (depreciation) and only the work-related proportion is claimable. You should keep a log of work related use for a period of at least four weeks for each item to determine the proportion that you can claim.

The ATO have confirmed that the iPad will be treated as the equivalent of a laptop. If it is used to produce assessable income (i.e. for work related activities) a claim could be made. Any claim will have to be adjusted where there is private use and if the iPad cost more than $300 the work-related proportion would have to be depreciated over its effective life. You should keep a log of work related use for a period of at least four weeks to determine the proportion that you can claim.

Child care expenses are not claimable as a tax deduction. Eligible taxpayers may be able to claim the Child Care Tax Rebate (CCTR) through the Family Assistance Office.

You cannot claim a deduction for this because it is not a donation to the charity; rather you are receiving something for your money. Buying an item from a charity does not make your purchase tax deductible. The same applies to the purchase of raffle tickets. Only donations to registered charities are tax deductible.

There is no limit on the amount claimed each year, provided the expenses are necessarily incurred in earning your income. The expenditure must be work related and you may need receipts to substantiate the expenditure. Keeping incomplete, incorrect or no records at all may be limiting your ability to claim deductions. Advice can be obtained from a registered tax agent. H&R Block are happy to advise their clients on appropriate record keeping that will enable them to maximise their allowable deductions.

Provided it gives full details of the supplier and date of purchase the tax office would accept a credit card slip as proof of purchase. Taxpayers can make a notation on the document indicating the type of goods that were purchased. Many taxpayers use the internet to purchase or pay for their work related expenses and so the ATO will also accept Bpay or email receipts provided they contain the necessary information: date, supplier, nature of the goods and the amount.

Documentary evidence should be kept for five years from the date of lodgement of the tax return in which the claims are made. If you are depreciating an asset the receipt should be kept until the item is fully depreciated (even if over 5 years).

Fees paid to a registered tax agent (like H&R Block) for preparation of your return, amendments and generally handling your tax matters are all deductible. You can also claim travel to your registered tax agent (you are limited per income tax return to 5,000km in total across the entire return if claiming the c/km method). Registered tax agents are the only people legally able to receive payment for the preparation of tax returns.

At H&R Block nothing is too complicated. We can assist you with any number of tax questions. Find an office near and book an appointment online or call 13 23 25.

In a nutshell, your credit score is a number that helps banks and lending institutions determine how reliable you’re likely to be at paying off future debts. Your score will fall on a scale of 1-1000 (or sometimes 1-1200, depending on the credit agency you use to measure the score). The higher the score the better as it opens up more possibilities for lenders, banks, insurance companies and service providers to give you a better deal. A low score can lead to companies being reluctant to do business with you or charge you higher rates.
 
You can check your credit score in less than a minute simply by signing up to MoneyHub. Once you have your score, you can see which category you fit into (see table below) and whether you need to do some work to improve your score.
 
Here is a summary of the scores provided based on the Illion credit score scale:
0 No score If you are a young Australian who has not yet built up a credit history, don’t be surprised if nothing comes up.
Alternatively, you may have some bad debts associated with your name. Make sure to check everything in your credit report to ensure that it’s correct. If not, you may lodge a dispute in the system to rectify.
1-299 Low Your file may have some negative data due to payment defaults, poor payment history or bankruptcy. A large number of credit enquiries, especially for small amounts could also be a factor.
300-499 Room for improvement  You may be still in the process of building up a credit history and have not yet proven your reliability. Or your history may show a record of credit applications to smaller lenders who provide services to higher-risk customers. 
500-699 Average This is a healthy result, although it may indicate you don’t have an extensive credit history, possibly due to your age or  lack of a property portfolio. 
700-799 Great Most people in Australia fall into this category. Your history shows you have maintained good credit history and have probably been paying your bills on time. There may however be a few credit enquiries or loan applications on your file.
800-1,000 Excellent This is the best level of rating, indicating reliability with credit applications and repayments over a significant period of time. It’s associated with disciplined applications, having a mortgage and/or investment properties. Older age groups often fall into this range.
 
Essentially anyone who has taken out a loan or line of credit or held a credit card in their name will have a credit history. You must be at least 18 years old to apply for a financial product, though if you are under the age of about 20, you may not have had enough time to build up a credit history.
First of all, don’t panic. A low credit score can happen for a number of reasons.
If you believe the score to be incorrect:
  • First check with the credit agency that created the score to check they have the correct information for you.
  • Next, check with your bank to make sure they are also using the correct data and that you’ve not been the victim of financial fraud
  • If these are all in order and your credit score is still low, then it is likely due to one or more of the following reasons:
    • Not paying bills on time or not paying at all
    • Missing on loan repayments
    • Making too many applications for credit
    • Defaulting a loan
    • Having your home foreclosed
    • Any court judgment on financial payments
The good news is that there are quite a few things you can do to improve your credit score, including:
  • Ensuring your credit file is accurate and up to date
  • Paying all bills and loans on time
  • Showing lenders you’re good with loans and repayments by managing a small loan or credit card
  • Holding on to any unused credit cards
  • Not applying for too many credit cards
Your score comes from our partner illion, an internationally trusted credit agency, that’s been operating in Australia since 1887. illion follows best practice guidelines to gather all of your financial data from banks, credit card companies and auto financers, as well as public records such as property or court documents in order to calculate your score.
 
If there is anything you believe to be incorrect on your record, simply log a query while you’re logged in to MoneyHub.
To improve your credit score, you need to demonstrate reliability with paying back loans and limit the number of times you apply for credit.
 
Improving your score takes time and may take more than a couple of years. It’s a good idea to log in and check your credit score from time to time in order to stay up to date with your current score and make sure your efforts are helping to improve the overall score.
 
You can check your credit score with MoneyHub whenever you like and as many times as you want!
A higher credit score improves your chances of getting approved for a range of financial products, including a home loan, personal loan, line of credit or credit card. But that’s not all. It also makes it more likely you will be offered a more favourable term.
The higher your score, the more desirable you will be to a range of lending institutions, meaning there’s a better chance you will be able to get the best possible deal.
A credit report is a full summary of all your financial history including bill payment history, defaults, bankruptcies and court judgements, plus any loans or credit you currently have in your name.
 
Your credit score is a number on the scale of 1-1000 (or sometimes 1200, depending on the agency) that indicates how reliable you are at repaying loans and managing debt. The higher the number the better, and this number changes whenever you perform any financial activities, such as paying a bill on time or defaulting on a loan.
With MoneyHub, your credit score and report are both available to you at no cost and can be accessed whenever you want. Simply log back in anytime to view. Plus. we’ll even send you alerts whenever something changes on your credit report including but not limited to, addition of any new accounts, defaults, increase in credit limits on any of your accounts, so that you can stay on track and improve your score over time.
Companies that give credit want to know if a customer is reliable and if they will repay their bills and debt on time. Credit score providers gather all of this information from banks, credit card companies and auto financers, as well as public records such as property or court documents in order to help these companies make these assessments. You can read more about credit reporting agencies and your rights and privacy here.
 
There are a number of reasons why your score might have changed. Some of these include:
  • The age of your credit information may affect your credit score in that newer data is often weighted more than older information.
  • Information held on your credit file may drop off over time as it gets older.
  • The length of time between when a credit provider sends your information through to a credit bureau such as illion may also affect your score.
If you have any questions about your credit file, feel free to email hrblockmoneyhub@illion.com.au for more info.
Absolutely not! Using MoneyHub will in no way affect your credit score. It will just make your life easier by giving you an easy way to track your finances and make good decisions for your future.
Spend Tracker is a user-friendly platform designed to help you get a quick and easy snapshot of all your financial transactions so you can make better decisions about your money.

Spend Tracker lets you see where your money goes, tag taxable transactions throughout the year to make tax time easier and identify strategies that can help you make your money work harder for you.
 
When you register for Spend Tracker you authorise illion Open Data Solutions to retrieve information from your chosen financial institutions on your behalf. Once the information has been gathered for you, it will then be displayed on an easy to read dashboard where you can monitor transactions, track your money and tag taxable transactions to save time and money at tax time.
Illion is a trusted name in financial services and an established partner of H&R Block. They are the leading independent provider of trusted data and analytics products and services in Australasia.
 
You need to provide credentials when you register for Spend Tracker so that we can retrieve accurate information and provide you with a true snapshot of your financials. Your credentials are stored by illion Open Data Solutions with bank level 256-bit encryption, secured by 2048-bit keys and adheres to all Australian privacy laws. 
 
Your privacy is our top priority and illion Open Data Solutions apply the same level of security to all of your financial information and personal details as your bank. Data is encrypted following industry best practices.
One of the ways in which we ensure enhanced security for your account is by using two-factor authentication. A security tool will send a code to your mobile phone. This code must then be entered when prompted to do so. This provides you with an extra layer of security, which is important when it comes to protecting your personal and financial data.
No, money cannot be transferred via Spend Tracker. The platform has view only access, which means that you can only view the information retrieved from financial institutions.
Simply log in to MoneyHub, go to the Spend Tracker page and follow these three steps:
  1. Select your chosen bank or financial institution
  2. Add your credentials
  3. Choose the accounts you would like to view
That’s it, you’re ready to go!
No, it’s up to you how you want to manage your accounts. Choose to connect all your accounts at the beginning so you have full visibility or add new institutions and accounts at any time via the Spend Tracker manage account page. The platform is designed to be flexible so you can get what you need, when you want it.
In the same way that it is easy to add accounts at any time, you can also remove accounts from Spend Tracker any time you want to. All you have to do is go to the Spend Tracker Manage Accounts page and following the instructions. ​
Every time you log into Spend Tracker, your details will be updated so you always have the most relevant information available to you.
You can view the full list of available institutions via the institution drop down on the Spend Tracker page. Please note, this list may change. So if you work with a bank that is not currently on this list, please check back later to see if it has been added.
MoneyHub is a financial wellness product created and owned by H&R Block Australia in partnership with Credit Simple. H&R Block is Australia's leading tax preparation company, with over 50 years of Australian tax expertise. We created this product to help our clients take control of their finances and managing their taxable transactions easily throughout the year.
 
MoneyHub may receive a commission for referrals from a range of providers including financial services and telcos, when you visit and click on offers displayed on the MoneyHub website and in MoneyHub’s communication to you.
Absolutely! H&R Block is trusted and chosen by over 1 million customers at tax time each year thanks to our strong record for efficiency and reliability. We have over 50 years of Australian tax experience and we are passionate about helping Australians make the most of their money each and every day.
What sets our platform apart from other credit score sites is our ability to organise and manage your tax deductions through our Spend Tracker.
 
We want to make sure you don't miss out on any deductions that you are eligible for, which is why Spend Tracker helps you consolidate your cash flow from all your bank accounts and cards in the one platform.
Once you have linked your accounts, you can tag taxable transactions throughout the year. At the end of the financial year, simply export the list of potential tax deductions and take it with you to your tax appointment.
 
It lets you see where your money goes so you can  identify strategies that can help you make your money work harder for you. Best of all, all these tools are free.
 
To find out more about how to use the Spend Tracker to your advantage, visit our Maximise your Tax Deductions page.
Yes, Moneyhub has negotiated a wide range of special offers for our members so that you can save even more.
 
These can range from credit cards, personal loans, home loans, energy plans, insurance, mobile phone plans, and broadband plans.
 
We’re always on the lookout for better deals for our members so you can be sure there’s more to come.

Your privacy is a top priority and your credit history will only ever be accessed when you give permission. Click through to find out more about MoneyHub’s Terms of Use and Privacy .

All of your information is stored in a secured environment and Moneyhub adheres to all Australian privacy laws, which have strict rules about how credit providers and credit reporting bodies can handle your personal information. Find out more about MoneyHub’s Privacy here.
This is identity theft (or identity fraud), which involves someone using another individual’s personal information without his or her consent, usually to open a bank account, acquire a credit card or commit a financial crime.
 
This can happen when a thief accesses your personal details from a document containing your personal information, or from public sources, such as social media. So it is very important that you keep all of your records and financial documents, as well as your ID, safe and secure at all times.
 
It is also important that you regularly monitor your accounts and credit report and stay alert to any unexpected changes or irregularities. If you believe you have been a victim of identity theft, you should act immediately and report this to your financial institution so that action can be taken.

The law regulates credit reporting and ensures that only business entities with a specific, legitimate purpose, and not members of the general public, can check your credit without written permission.
No. MoneyHub protects privacy of each customer and does not allow unauthorised use of your email address by other parties or for making good and services without your permission.
 
The security of your information and your privacy is a top priority for us, so we have worked closely with Australian government agencies to find a best practice way for you to authenticate your identity.
 
An Australian passport or driver’s licence is the most common way to authenticate your identity, so this is the primary way for you to register and access your information. However, if you don’t have these documents you can also use a Medicare card or an international passport to gain access.
 
It is also possible for you to register manually, without using any of the documents listed above, by selecting the option “None of the above” as the Proof of ID type when you are registering. You will then have the option to supply accompanying documents online.
We do everything we can to ensure that all of the information we hold is accurate and correct. But if you believe there to be an error, please contact us at hrblockmoneyhub@illion.com.au and a member of our team will assist you.
 
The credit report section of our website also has a ‘Dispute this’ tool in each section of the credit report. This allows you to query and have any incorrect data corrected.
MoneyHub supports all mainstream browser types (Chrome, Firefox, Safari, Edge). However, please note that we’re currently only supporting the more current versions. So if you are experiencing issues, the first step is to make sure your browser is up to date. If you continue to have issues, please contact us on hrblockmoneyhub@illion.com.au.
You can view the full list of available institutions via the institution drop down on the Spend Tracker page. Please note, this list may change. So if you work with a bank that is not currently on this list, please check back later to see if it has been added.
Tagging taxable transactions is one of the best features of Spend Tracker, as it will allow you to be prepared when it comes to tax time.
 
To tag a taxable transaction, all you have to do is:
  1. Go to your transaction line
  2. Click on the ‘edit’ icon under the “Potential Tax Deduction” header
  3. Mark the single transaction as a potential tax deduction
  4. Or you can choose to apply the rule to all similar transactions
No problem! If you think only part of your transaction is potentially taxable, we still recommend you tag it in the tracker. This is the best way to avoid missing any tax deductions as they will all be included. You can then determine the exact percentage of the transaction that is taxable when you work with your tax consultant at the end of the financial year.
Yes. When you look at your list of transaction in Spend Tracker, you can easily filter the transactions to only show potential tax deductions. You can also set the filter to a specific date range, so you will only see potential tax deductions during the chosen time frame. Once it’s showing your chosen view, you can download the full list.
Yes. When you look at your list of transaction in Spend Tracker, you can easily filter the transactions to only show potential tax deductions. You can also set the filter to a specific date range, so you will only see potential tax deductions during the chosen time frame. Once it’s showing your chosen view, you can download the full list.
When tax time rolls around, all you need to do is:
  1. Download your list of potential tax deductions
  2. Then take this list with you to your tax appointment

If you have chosen to do your tax virtually, simply upload it into our secure client portal and your consultant will be able to access it from there.
 
You can rename your transaction categories with a nickname any time you like.
 
All you have to do is:
  1. Go to the Categories page, which you can access on the right-hand side menu of Spend Tracker
  2. Select the category you’d like to rename
  3. Enter the nickname for your chosen category
  4. Click ‘Add nickname’

Yes, you can change a provider’s category any time you like to better suit your needs.

All you have to do is:

  1. Go to your transactions page
  2. Go to the transaction you want to rename and click on the ‘edit’ icon next to the category to view the full details
  3. Choose a revised category from the dropdown list
  4. Click ‘Submit’
We are constantly reviewing the categories assigned to providers and so it is possible that these may be changed at any time. We will not however change any transactions that you have re-categorised yourself!
Absolutely, you can customise your view of spending for a specific period or choose from the pre-set list of options.

To view spending for a specific period, all you have to do is:
  1. Click ‘Filter your transactions’ at the top of either the Spend Tracker or Transactions pages
  2. Under ‘Refine date range’, select the period over which you want to view your spending (Notice that you can put in a custom period)
  3. Click ‘Refresh’ to see results
N.B. Custom date range may only be selected for periods within the last 12 months. To access dates further back, please use the pre-set financial year selections.
Unfortunately, not. If you buy cryptocurrency as an investment , Capital Gains Tax (CGT) will apply. If you buy and sell cryptocurrency as a trader, income tax will be charged.

This applies regardless of where in the world the cryptocurrency is bought and sold and regardless of the degree of anonymity associated with the sale 
If you are an investor and your sale proceeds are less than your cost base, you will make a capital loss. These losses can be offset against capital gains arising in the same year and to the extent they are not used up, they can be carried forward indefinitely until capital gains arise to absorb them. Capital losses can only be offset against capital gains, they can’t be offset against any other form of income.

If you lose your coins, they are stolen or you are otherwise subject to fraud you may be able to claim the value of your losses as a capital loss.

If you are a trader and you make a loss, this can potentially be offset against any other income arising in the same year (subject to the application of anti-avoidance rules relating to non-commercial losses)
In most cases, no. Some taxpayers mistakenly think that you can buy up to $10,000 of cryptocurrency and avoid CGT by taking advantage of the ‘personal use exemption’.

This exemption only applies where the cost of the cryptocurrency does not exceed $10,000 and you can demonstrate that the cryptocurrency was to fund genuine personal consumption, such as paying for a holiday, a car, your wedding, etc. Mistakenly relying on this exemption is one of the biggest reasons people fall foul of the ATO; expect to be asked to provide proof that you either did – or intended to – use your cryptocurrency to fund personal spending on goods and services.

Where the cost of your cryptocurrency assets exceeds $10,000, the personal use exemption will not be available and CGT will apply, whether the asset was for personal use or not.
See above, basically the same question.
If you invest in cryptocurrency, you pay CGT on each disposal (see above).
If you buy and sell cryptocurrency on a regular basis with a view to making a profit, then the profits on disposal of the cryptocurrency will not be subject to CGT but will be assessable income since you will be regarded as a trader rather than an investor. In effect, you’ll be regarded as being in business as a buyer/seller of cryptocurrency.

It can be a fine line between being an investor and a trader – broadly speaking if you are turning over your cryptocurrency every few days chasing profits, you have many transactions and you are running a business-like structure (with for example a business plan, accounts and records of trading stock, business premises, licences or qualifications, a registered business name and an Australian business number) you will be a trader. If you are holding the cryptocurrency with a view to long term gain, you are likely to be an investor.

If you are a crypto trader, the sales and purchases are converted to AUD$ at the date you receive the proceeds/make the payment. You must also apply the trading stock rules to determine if there is any income or deduction due to the changing value of your trading stock.
Capital Gains Tax (CGT) applies on gains arising from investment in crypto currency .

This is calculated based on the difference between the amount you paid for the cryptocurrency and the amount you disposed of it for. Any profit is subject to CGT, which can potentially be discounted by 50% if you hold your crypto asset for more than 12 months.

Your capital gain is worked out like this:
  • Deduct the cost base from the sale proceeds. The cost base is the price you paid for the cryptocurrency plus incidental costs.
  • Next, take away any capital losses you have.
  • Then discount the gain. Individuals are entitled to a 50% discount. The asset must have been held for 12 months or more for the discount to be available.
  • The resulting figure is your net capital gain. This is subject to tax at your marginal rate.
Disposal occurs when:
  1. selling cryptocurrency for Australian dollars
  2. exchanging one cryptocurrency for another
  3. gifting cryptocurrency
  4. trading cryptocurrency
  5. using cryptocurrency to pay for goods or services
In some cases, such as when you gift it, market value is substituted for proceeds.
If you are an investor and your sale proceeds are less than your cost base, you will make a capital loss. These losses can be offset against capital gains arising in the same year and to the extent they are not used up, they can be carried forward indefinitely until capital gains arise to absorb them. Capital losses can only be offset against capital gains, they can’t be offset against any other form of income.

If you lose your coins, they are stolen or you are otherwise subject to fraud you may be able to claim the value of your losses as a capital loss.

If you are a trader and you make a loss, this can potentially be offset against any other income arising in the same year (subject to the application of anti-avoidance rules relating to non-commercial losses)
 
Capital Gains Tax (CGT) applies on gains arising from investment in crypto currency .

This is calculated based on the difference between the amount you paid for the cryptocurrency and the amount you disposed of it for. Any profit is subject to CGT, which can potentially be discounted by 50% if you hold your crypto asset for more than 12 months.

Your capital gain is worked out like this:
  • Deduct the cost base from the sale proceeds. The cost base is the price you paid for the cryptocurrency plus incidental costs.
  • Next, take away any capital losses you have.
  • Then discount the gain. Individuals are entitled to a 50% discount. The asset must have been held for 12 months or more for the discount to be available.
  • The resulting figure is your net capital gain. This is subject to tax at your marginal rate.
Disposal occurs when:
  1. selling cryptocurrency for Australian dollars
  2. exchanging one cryptocurrency for another
  3. gifting cryptocurrency
  4. trading cryptocurrency
  5. using cryptocurrency to pay for goods or services
In some cases, such as when you gift it, market value is substituted for proceeds.
 
If you invest in cryptocurrency, you pay CGT on each disposal (see above).
If you buy and sell cryptocurrency on a regular basis with a view to making a profit, then the profits on disposal of the cryptocurrency will not be subject to CGT but will be assessable income since you will be regarded as a trader rather than an investor. In effect, you’ll be regarded as being in business as a buyer/seller of cryptocurrency.
It can be a fine line between being an investor and a trader – broadly speaking if you are turning over your cryptocurrency every few days chasing profits, you have many transactions and you are running a business-like structure (with for example a business plan, accounts and records of trading stock, business premises, licences or qualifications, a registered business name and an Australian business number) you will be a trader. If you are holding the cryptocurrency with a view to long term gain, you are likely to be an investor.
If you are a crypto trader, the sales and purchases are converted to AUD$ at the date you receive the proceeds/make the payment. You must also apply the trading stock rules to determine if there is any income or deduction due to the changing value of your trading stock.
 
Usually, you must pay tax on any profits/gains arising in a tax year after you lodge your tax return for that year. If you don’t use an agent to lodge your tax return, payment will be due on the later of 21 days after the:
  • relevant lodgment due date, or
  • notice of assessment is deemed received (which is three days after issue).
If you use a tax agent, the payment date is between 21 March and 5 June of the following year, depending on when you lodge your tax return.
 
Unfortunately, not. If you buy cryptocurrency as an investment , Capital Gains Tax (CGT) will apply. If you buy and sell cryptocurrency as a trader, income tax will be charged.

This applies regardless of where in the world the cryptocurrency is bought and sold and regardless of the degree of anonymity associated with the sale 
See above, basically the same question.
 
In most cases, no. Some taxpayers mistakenly think that you can buy up to $10,000 of cryptocurrency and avoid CGT by taking advantage of the ‘personal use exemption’.

This exemption only applies where the cost of the cryptocurrency does not exceed $10,000 and you can demonstrate that the cryptocurrency was to fund genuine personal consumption, such as paying for a holiday, a car, your wedding, etc. Mistakenly relying on this exemption is one of the biggest reasons people fall foul of the ATO; expect to be asked to provide proof that you either did – or intended to – use your cryptocurrency to fund personal spending on goods and services.

Where the cost of your cryptocurrency assets exceeds $10,000, the personal use exemption will not be available and CGT will apply, whether the asset was for personal use or not.
 
We understand that things come up unexpectedly. If you would like to reschedule or cancel your appointment simply click here and enter your appointment confirmation number – this can be found in your booking confirmation email. Alternatively, you can call your local office or our contact centre on 13 23 25.
Joint bookings for more than one person can be made through any of our booking channels. Simply select the ‘In Office – Multiple Years or Multiple People’ option when selecting your appointment type online. Alternatively, if you’re speaking with one of our consultants simply ask for a joint booking and they will schedule in an appropriately timed booking for you. If booking online enter the names of the second person (or more) in the Comments section
Our handy tax checklist has been designed to help you prepare for a quick and efficient tax return experience. Find out more and download here.
If you are a property Investor, our Residential Property Investor Tax Time Checklist is also available to ensure you don’t miss out on any deductions this tax time and maximise your cash flow. Find out more and download here.
 
Occasionally our consultants may run a little overtime with their previous client and will be with you as soon as they can. Rest assured that this will not impact your allotted time and we appreciate your patience.
Short answer is yes. Our offices are open for business across the country, subject to government restrictions in each area. To do this safely we've introduced enhanced hygiene protocols in offices and we recommend wearing masks even when not mandated, to reduce the risk of transmission.

We are also taking no risks with our people.  Any associate or client who is unwell and showing even mild "flu- or cold-like symptoms" will be asked to not come to the office until the symptoms have gone. More information can be found here.
Yes, we accept walk ins.
If you cannot find a suitable appointment time at your preferred office, visit one of our other local offices. We have over 400 offices nationally. Simply click here and enter your postcode to find another office close by or visit www.hrblock.com.au . Alternatively, you can call 13 23 25 to book an appointment at an office close to you. If you can’t make it to an office and prefer to have your return prepared by an experienced tax consultant, our online tax options have you covered. Additionally, view our service comparison table to discover the best service option for you.
Refunds are based on the ATO and usually the ATO advises 7-10 business days to process refunds. Whichever way you choose to do your tax with us, your refund will be processed as soon as possible within those guidelines.
Contact us directly on 13 23 25 or visit our website to chat with a member of our team, here you can also find other contact options like email. You can also visit our social platforms (Facebook or Instagram) to reach out to our team directly via private message.
Yes, you can. You have the option to do a virtual appointment with a tax expert which can be booked through our appointment booking system (select Phone or Virtual). Or, you can complete your tax return with us through our Online Tax options. Simply click here for more information.