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.

 

NEWSLETTER ARCHIVES