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TAG Tips for Individuals

As the end of financial year approaches, it is important that you take the time to focus on tax planning and tax issues that affect you before 30 June 2015 arrives.

We have outlined some of the key tax considerations in our Tax Planning information sheet for individuals.

Prepaid Expenses

Expenses are deductible when incurred.  For an individual this is when paid, therefore wherever possible pay for deductible expenses prior to 30 June.  This includes insurance and interest on rental properties.

Sickness and Accident Insurance

A deduction is available for the cost of insurance to cover loss of income.

Superannuation Contribution Deduction

Employees generally cannot claim a tax deduction for personal superannuation contributions.  However, you may claim a deduction for a personal contribution if:

Eligibility for Super Co-Contribution

You will be eligible for the government super co-contribution (max. of $500 in 2014-15) if you made personal super contributions to your superannuation account during the financial year (max. $1,000), your total income is less than $49,499 and 10% comes from employment related activities and you were less than 71 years old at the end of the financial year.

Motor Vehicle

If you use your motor vehicle for work related purposes the following four methods are available for use in calculating your deduction:

  • A set rate for each business kilometre
  • Claim to a maximum of 5,000 business kms
  • Based on 12% of the original cost of vehicle
  • Must travel more than 5,000 business kms
  • Claim one third of actual expenses
  • Must travel more than 5,000 business kms
  • Written evidence of expenses is required
  • Based on the business use percentage as per the log book records
  • Need odometer reading at the start and the end of the period
  • Written evidence of expenses is required

Home Office

If you use a home office for ‘income producing activities’ you may be able to claim a proportion of some expenses as a tax deduction (e.g. telephone, electricity, gas).  To be able to claim the deduction, you must keep entries for a representative period (minimum 4 weeks) to indicate the hours you spend in the home office.

A deduction is also available for work related telephone calls.  You can substantiate deductions by:

Personal Income Tax Rates

The Government has announced that it will defer tax cuts that were due to come into effect from 1st July 2015.  As a result, the marginal tax rates are proposed to remain at their current settings.  Current marginal tax rates are shown below:

Taxable income up to $18,200 0% Rate
Taxable income from $18,201 to $37,000 19.0% Rate
Taxable income from $37,001 to $80,000 32.5% Rate
Taxable income from $80,001 to $180,000 37.0% Rate
Taxable income over $180,000 45.0% Rate

Medicare Levy Increase

From 1st July 2014, the Medicare Levy rose from 1.5% to 2.0%.

Net Medical Expenses Tax Offset

From 1st July 2013 those taxpayers who claimed the NMETO for the 2012-13 and 2013-14 income years will continue to be eligible for the NMETO for the 2014-15 income year if they have eligible out of pocket medical expenses above the relevant thresholds.

Private Health Insurance

From 1 April 2015, the rebate levels applicable are:

Standard Tier 1 Tier 2 Tier 3
Singles ≤ $90,000 $90,001-105,000 $105,001-140,000 ≥ $140,001
Families ≤ $180,000 $180,001-210,000 $210,001-280,000 ≥ $280,001
< Age 65 27.82% 18.55% 9.27% 0%
Age 65-69 32.46% 23.18% 13.91% 0%
Age 70+ 37.09% 27.82% 18.55% 0%
Medicare Levy Surcharge
All ages 0.00% 1.00% 1.25% 1.50%


Increase to Medicare levy low income thresholds

The Medicare levy low income threshold is $20,542 for individuals, $34,367 for families (with no children) and $32,279 for seniors and pensioners for the 2014-2015 income year.

Travel Expenses

A deduction can be claimed for the expenses incurred in travelling for work related business purposes.  If you did not receive a travel allowance:

  • and travel is less than six nights in a row
  • Written evidence is required; and
  • Travel diary not required.
  • and travel more than six nights in a row
  • Written evidence is required; and
  • Travel diary is required.


If you purchase assets to be used for a number of years you can claim a decline in value each year.  “Depreciator” is a business that specialises in the preparation of depreciation schedules for rental properties and can be used to:

Therefore, if you have recently purchased a rental property, please contact us to discuss the preparation of a depreciation schedule.


To claim your personal tax deductions, ensure you are able to substantiate your expenses:

More Information

If you have any questions after reading this please contact your TAG Financial Services adviser on (03) 9886 0800 or via email.

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