Frequently Asked Questions
Other FAQ's
FAQ's — Tax Income
1. Can all the interest from our joint accounts be declared in my wife's tax return because her income is much lower than mine?
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.
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2. I have just moved permanently to Australia. Do I have to pay tax on the money that I have brought with me?
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.
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3. I have just received a letter from the tax office saying that I did not declare some interest from my bank account. What should I do?
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, we can help.
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4. I will be going to Europe for six months and intend to work while I am away. Will I have to pay tax in Australia on the money that I earn overseas?
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.
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T: (08) 9275 7888 E: info@mhcpa.com.au
Address: 1/174 Hampden Road, Nedlands, WA 6009
T: (08) 9275 7888
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