Blogs

Many are keeping a close watch on their spending trying to make a difference to their budget.  The Queensland January floods and cyclone Yasi hasn’t helped with the current price of fruit  and vegetables.  Bananas have led the price increases rising by a whopping 470 per cent pushing inflation higher. The Australian Bureau of Statistics have reported following the rise of fruit and vegetables are increases of 10 per cent for electricity,12.8 per cent for water and 11.3 per cent for petrol.

PAYE and personal tax payers are beginning to think of their
tax returns and their tax back or the likely amount to pay the ATO.  The last financial year ended on 30 June and tax returns have to be lodged by the end of this October.  Many tax payers will be seeking assistance in lodging their tax return by paying a tax agent or an accountant to assist them.

UK based research company UHY Haines Norton has been looking at tax rates paid in Australia and found some good news for tax payers.  It seems that lower income employees are amongst the lowest rates in the World. Australia was ranked at 18th out 20 of the surveyed countries with one country, Dubai not paying tax at all. For the large wage earners the story is not so good with Australia levying high tax rates.

Now we’re just a few days into the new financial year tax accountants and tax advisors start to get busy with their clients.  Now is peak tax time with the Australian Tax Office requiring tax returns to be submitted by the end of October.  If you are a personal or PAYE tax payer there is normally a lot to be considered.  This is because the ATO in effect consider you “guilty” until proved innocent.  This really means you have justify all

About 20 per cent of Australia tax payers completed their tax returns online last year using the ATO’s etax lodgement.  This year the number is likely to be higher as the numbers appear to be rising annually. One of the things I heard recently was: It's not what you know that's important if you are filing online but, it's what you don't know . . . or, more to the point, it’s what you think you know and really don't.

Three points to consider to help with your best option.

Are you buying the story being put out by the Reserve Bank of Australia and government of near future strong prosperity, buoyant wages, stronger employment with overflowing order books and a hike in the current interest rate.  No many it seems believe it.  While most can believe in the two tier patchwork economy supported in factories and offices the prevailing view appears that although there is a mining boom there is little sign of growth with also talk of some industries being in recession.

The Australian Tax Office is targeting tax claims sought each year amounting to $16 billion in work expenses including claims from,builders, real estate agents and flight attendants.

"We have found people in these industries are at a
high risk of getting their work related expense claims wrong due to the types of deductions they are entitled to claim such as motor vehicle and travel expenses," tax commissioner Michael D'Ascenzo said yesterday.

The Reserve bank of Australia meets tomorrow with the market thinking there is a very low chance interest rates may rise when considered by the Banks policy committee.  The markets are currently only considering a 25 basis point interest rate rise during the next 12 months.  This is despite various statements referring to a more aggressive policy tightening to keep inflation in check.

The latest figures from the Reserve bank of Australia indicate total credit card balances have risen 42 per cent during the past five years, now standing at $49.3 billion and with $36 billion of accruing interest.These are new high records perhaps suggesting rising bills are putting pressure on households with the number of credit card accounts in the region of 15 million for the first time. This is growth of 18% over the past five years and reflects a debt balance for each card of $3321. How many do you have?

Our patchwork economy continues with unemployement in WA dropping below 5%. in other words running at full employment on a boom that is made in China.  For the rest of us matters are not so good and particulary for investors.