Please visit our services page for full list and description of all services we can provide.
FAQs
General
Why should I choose MJ Accountants?
We are a team of friendly professionals who have a diverse range of knowledge and experience. Melanie Jenkins is the principal accountant and she is a member of the Chartered Practicing Accountants who is a regulating body to ensure the highest standards are upheld. We offer excellent service to all our customers and are very competitively priced.
What are MJ Accountants' office hours?
We are open from 9am to 4pm Monday to Friday. After hours appointments are available upon request.
Taxation Matters
When can I expect my tax return to be ready to lodge after I drop it in?
For business clients we strive to complete each job within 6 weeks and for Individual clients no later than 1 week. We also have a same day service available for simple individual tax returns.
Who will be preparing my Income Tax Return?
All of the accountants at MJ Accountants have either received or are in pursuit of receiving their Bachelor of Business (Accounting Major) and are experienced in all areas of Taxation and Compliance.
Notice of Assessment (NOA) - What are they?
When you lodge a tax return, the ATO process it and work out whether you have paid the right amount of tax, have a tax debt or are due for a refund because you have paid more that than you need to. They let you know the result of our assessment by sending you a notice of assessment.
The notice of assessment will state your taxable income, show how much tax you have paid during the year, and show whether you owe the Tax Office money, have paid enough tax, or are due for a refund.
Do I receive my Family Tax Benefit with my tax refund?
No. Family Tax Benefits are now administered by the Family Assistance Office (FAO). Once you receive your Notice of Assessment the Australian Taxation Office will send your information to the FAO and they will reconcile your entitlements to your recorded Taxable Income and they will issue the refund/request payment.
What are deductions?
If you spend money on something to help you earn your income, you may be entitled to claim that cost as a tax deduction. Tax deductions reduce the amount of income you have to pay tax on. Because we all earn our money in different ways, it depends on your particular circumstances whether a cost is an allowable deduction or not.
The important thing to remember about deductions is that you apply them to reduce the amount of income you pay tax on, you do not deduct them directly from your tax withheld amount. Nor does the Tax Office simply reimburse you for your expenses.
Example
Diana goes to school and also has a part-time job packing fruit. She earned $11,300 in wages in the last financial year.
She bought a pair of boots, a pair of gloves and some overalls to protect herself at work, all of which cost her $250. Protective items are allowable as deductions, so Diana can claim them against her income.
Diana uses the formula to work out her taxable income:
= Assessable income – allowable deductions
= taxable income
= $11,300 – $250
= $11,050.
Your tax saving as a result of a deduction will vary depending upon what marginal tax bracket you are in.
What is negative gearing and will it work for me?
You will often hear the words “negative gearing” discussed in relation to buying rental properties. “A rental property is negatively geared if it is purchased with the assistance of borrowed funds and the net rental income, after deducting other expenses, is less than the interest on the borrowings.
The overall taxation result of a negatively geared property is that a net rental
loss arises. In this case, you may be able to claim a deduction for the full amount of rental expenses against your rental and other income – such as salary, wages or business income – when you complete your tax return for the relevant income year. Where the other income is not sufficient to absorb the loss it is carried forward to the next tax year.
If by negatively gearing a rental property, the rental expenses you claim in your tax return would result in a tax refund, you may reduce your rate of withholding to better match your year-end tax liability.
Payment Arrangements and ATO debt – requirements and obligations.
If you are having financial difficulty and are unable to meet your tax obligations, please contact us to see if we are able to set up a payment arrangement between you and the Australian Taxation Office (ATO). The ATO are generally more responsive when it comes to tax debt if you contact them and not the other way around.
The ATO will commonly offer a manageable arrangement to pay off the current debt over a period of 12 months or less, but it is important that all future activity statements and/or tax returns are lodged and paid on time as the payment arrangement will only cover the existing debt. If you fail to meet this minimum requirement the ATO will have considered you to have defaulted on the payment arrangement and you may be required to pay the debt in full.
When I purchase an asset can I claim a deduction of 100% of the cost?
No. When you purchase an asset, this asset has an effective life. You may be able to claim a deduction for the decline in value of your depreciating assets over the life over the asset.
A deduction for the decline in value of a depreciating asset is not allowable if the depreciating asset is used solely for private purposes.
Examples of depreciating assets include:
- Computers
- Tools
- Furnishings, carpet and curtains
- Motor Vehicles
Business Development
I am buying/operating a business. What business structure should I choose?
There are a variety of structures which include Sole Trader, Partnership, Trust, Company and Superannuation that are available to choose when you are in business.
It will depend on your individual circumstances which structure will be right for you and your future needs. It is always best to seek the right advice when making these decisions as setting the right structure up from the very beginning can save you a lot of time and money.
Superannuation
What is Superannuation Guarantee Charge (SGC)?
Superannuation is money set aside by your employer for your retirement and the minimum contribution is 9% of your ordinary time earnings.
Ordinary time earnings are generally what you earn for ordinary hours of work, including over-award payments, commissions, allowances, bonuses and paid leave. It excludes things such as annual leave loading and reimbursement of expenses and will generally exclude overtime. This is a compulsory employer obligation and the money is to be paid into your super account each quarter.
Eligibility
Generally, you’re entitled to super guarantee contributions from an employer if you’re between 18 and 69 years old (inclusive) and paid $450 or more (before tax) in a month. It doesn’t matter whether you’re full time, part time or casual, and it doesn’t matter if you’re a temporary resident of Australia.
If you’re under 18 you must meet these conditions and work more than 30 hours per week to be entitled to super contributions. If you’re a contractor paid wholly or principally for your labour, you’re considered an employee for super purposes and entitled to super guarantee contributions under the same rules as employees.
What are Reportable Super Contributions?
Your reportable super contributions are the sum of the following:
- any personal deductible contributions you may have made
- any reportable employer super contributions your employer may make for you
From the 2009-10 income year, if your employer makes reportable employer super contributions for your benefit, they must include the total amount of these contributions on your payment summary. You must then include this amount in your income tax return and we use it to work out your total reportable super contributions for the year.
