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Beware of Tax Refund Email Scam

An email fraudulently claiming to be from the Tax Office is currently circulating.

The email claims to offer a tax refund and asks people for personal and credit card details.

It is similar to previous scams and uses the Tax Office logo and the words ‘Notification — Please read’ or ‘Australian Taxation Office – Please Read This’ in the subject line. There may also be more variations to these subject headings.

The email asks people to click on a link which redirects them to a bogus website that looks similar to the Tax Office website and asks for credit card and personal details.

The Tax Office will never send people an email asking them to provide personal information including credit card details.

Acting Second Commissioner Bill Gibson said anyone who receives the email should delete it immediately.

“People should be wary of unsolicited emails claiming to be from the Tax Office.
“As an extra precaution we recommend you type internet addresses directly into your internet browser rather than clicking on hyperlinks embedded in emails,” Mr Gibson said.

If people have entered their credit card information on the website, they should report it to their credit card provider as soon as possible.

ATO Media release 2008/24

Be Careful with your Tax File Number

The ATO is reminding taxpayers to keep their Tax File Number secure.

People are increasingly being asked to provide their TFN when it isn't needed. Watch out for bogus job advertisements that ask for your personal details including your TFN. It does not have to be provided to potential employers.

Only certain people can ask for your TFN, the most common being:

• the Tax Office when discussing your tax records
• your employer once you have started work
• your bank or other financial institution
• your tax agent
• Centrelink, and
• your superannuation fund.

To read the full ATO media release along with tips for keeping your TFN safe, see here.

Office Closed 6th - 13th April

Please note that our office will be closed from Sunday 6 April until Sunday 13 April. Clients who wish to speak with Alan are welcome to try reaching him on his mobile phone.

If you don't get through (we are staying in an area with little reception) please leave a message on the mobile and Alan will call you back as soon as he can.

Alternatively, voice messages left on the office answering machine will be followed up on the 13th when we return. Thank you for your understanding.

Q&A: How Long Do I Keep Records?

Question: How long should I keep my tax records and receipts?

Response: From 2004/05 the majority of individual taxpayers are required to keep their records for a period of five years from the time of lodgement.

Some exclusions may apply, such as in the case of a tax dispute with the Commissioner or capital gains tax (in these cases, the five year requirement may be extended).

However, five years from the time you lodged your return is the record-keeping requirement applicable to most Australian taxpayers.

Retrenched or leaving your job?

Leaving your current job can be a frightening experience, especially if you are not sure what's going to happen next.

If you resign, are retrenched or considering a redundancy package, you might be entitled to income support payments when you leave work.

Centrelink's Financial Information Service have put together a "Retrenched or Leaving Your Job Fact Sheet". The fact sheet provides information on entitlement, claiming, restrictions and waiting periods that may apply. You can download the publication in either PDF or rich text format online HERE.

Certain stapled security arrangements under review

ATO Media Release 2008/2

Acting Tax Commissioner Bruce Quigley today warned people to be cautious about claiming deductions for losses incurred under certain stapled security arrangements.

In these arrangements the company issuing the securities suggests that the investor may claim deductions for losses in certain circumstances.
These circumstances include the assignment, transfer or surrender of the note, or conversion or disposal of the stapled security.

Mr Quigley said the Tax Office is concerned that these losses may not be allowable and will be releasing a public ruling on the arrangement shortly.
"We are acting now to warn people who may be involved of our concerns as soon as possible.

"People should seek independent tax advice before claiming deductions for any losses that they incur under these arrangements,” Mr Quigley said.

A taxpayer alert TA 2008/1 was issued today and is available from the Tax Office website www.ato.gov.au

What every employee needs to know about super

The ATO has recently released their publication, "Super - what you need to know."

If you’re new to the workforce, changing jobs or you need to know how to make the most of your super savings, this publication will:

- help you understand how super works
- provide the steps needed to make the most of your super at different life stages, and
- show you where to go for more information.

You can download a free copy of the publication as a PDF directly from the tax office website HERE.

Another ATO Tax Refund Email Scam

The Tax Office is again warning people about a fraudulent email being circulated that claims to offer a refund from the Tax Office.

The email is similar to previous scams from March, June and October which fraudulently uses the Tax Office logo and the words ‘Australian Taxation Office – Notification’ or ‘Australian Taxation Office – Please Read This’ in the subject line.

There may also be more variations to these subject headings.

The email asks people to click on a link which redirects them to a bogus website that looks similar to the Tax Office website and asks for credit card and personal details.

The email and website are not affiliated with the Tax Office in any way.

Acting Second Commissioner Bill Gibson said anyone who receives the email should delete it immediately.

“People should be wary of unsolicited emails claiming to be from the Tax Office.

“The Tax Office will never send emails to people asking them to provide personal information including credit card details.

“As an extra precaution we recommend you type internet addresses directly into your internet browser rather than clicking on hyperlinks embedded in emails,” Mr Gibson said.

If people have entered their credit card information on the website, they should contact their credit card provider as soon as possible and report a possible compromise.

Tax Deadline Approaching

REMINDER:

If you are doing your own tax return this year, you have just days left to lodge it with the ATO before the October 31 deadline.

Online Guide for Young Employees

Today sees the launch of the Workplace Authority's "What's the deal with workplace agreements?" interactive tutorial.

The head of Workplace Authority, Barbara Bennett, says "'What's the deal with workplace agreements?' is a versatile product that advises and supports young employees, be they at school and working on the weekend or working full time as an apprentice. It cuts out the jargon and gives young employees the facts through realistic situations so that they know where they stand when they enter a workplace agreement."

The guide provides factual information about agreement making, rights of young employees, as well as the responsibilities of their employers. It is best suited for 14-22 year olds and their parents.

You can access or download the interactive guide at http://www.workplace.gov.au/

740 New Places to Boost Uni Entry in NSW

University students in New South Wales will benefit from 740 new Commonwealth supported places announced today by the Minister for Education, Science and Training.

“Places have been allocated for areas of skills need and student demand. New South Wales will receive 2,006 additional places by 2011,” Minister Bishop said.

“The new student places will provide for the training of 225 engineers, 200 nurses, 120 science professionals, 120 teachers, 50 health professionals including Indigenous health professionals, 10 business and IT professionals and 15 places for Indigenous education pathways.”

“Nationally the Australian Government has allocated more than 2,300 new Commonwealth supported places to help meet student demand for higher education,” Minister Bishop said.

More to Receive Higher Pensions

More than two million age pensioners will receive increases in their pension payments from 20 September 2007 and an estimated 300,000 older Australians will be able to access the pension for the first time or get a higher rate of pension.

Minister for Families, Community Services and Indigenous Affairs, Mal Brough, yesterday announced that pensions would once again rise above inflation.

The Minister said the adjustments from 20 September also applied to people receiving the full range of Centrelink payments, such as Disability Support pension and Newstart payments.

You can access a full summary of changes online here.

Elements of a Super Payout

From 1 July this year, Super payouts are made up of two components - a tax-free and a taxable component.

A tax-free component does not count towards your taxable income.

A taxable component is the part of the payment which is taxable. This will usually be broken up again into "taxed" and "untaxed" elements.

The taxed element had already had tax paid on it in the fund. It may or may not need to have additional tax paid on it once it is paid out. How much tax you may still need to pay on the taxed portion depends on the type of payout and your age when taking it. If you are 60 or over, you pay no tax on the taxed element of your payout.

The untaxed element is the part of your payout that hasn’t had any tax paid on it in the fund. It is still taxable so needs to included in your tax return as income. How much tax you will need to pay on the untaxed element depends on the type of payout and your age.

When you receive your payout, your super fund will send you a payment summary which will show the components (including any untaxed and taxed elements) and the tax withheld.

If the taxable component includes both taxed and untaxed elements, each is taxed separately according to different rules. For more detiled information, visit the ATO page How Your Super Is Taxed.

Thousands of Apprentices Gain New Benefits

According to a government media release this morning, thousands more Australians have today become eligible for a wide range of incentives to encourage the take up of apprenticeships in areas of skills shortages.

Backdated to 1 July 2007, Aircraft Maintenance Engineers, Binders and Finishers, Butchers, Flat Glass Trades, Furniture Finishers, Locksmiths, Optical Mechanics, Painters and Decorators, Picture Framers, Printing Machinists, Screen Printers, Shearers, Signwriters, Tree Surgeons, Vehicle Trimmers and Wood Machinists, will now join 38 trades previously eligible to access a range of Australian Government apprenticeship incentives including:

* $2,000 Apprenticeship Wage Top-Up;
* $1,000 Apprenticeship Training (FEE) Vouchers;
* $800 Tool Kit;
* $13,000 Wage Subsidy for Apprentices over 30 yrs;
* $1,000 Commonwealth Trade Learning Scholarship; and
* $1,000 Rural and Regional Skills Shortage Employer Incentives.

For more information contact the Australian Apprenticeships referral line on 13 38 73 or check out the website at http://www.australianapprenticeships.gov.au/.

Q&A: Allowances and Deductions

Question: I received a laundry allowance from my employer. Does this mean I have been reimbursed and can't claim a tax deduction for laundry?

Answer: Receiving an allowance from your employer (as shown on your payment summary) is not the same as being reimbursed. The allowance is taxable income and included on your tax return along with your regular wages. You can and should still claim a tax deduction for your actual laundry expenses in order to reduce your income (which now includes the allowance you received).

Payment of 2006/07 Child Care Rebate

The Family Asistance Office have reported that payments of the 2007 30% Child Care Rebate will be made from September.

Remember, this is the only year where you could receive two lots of the rebate; the 2005/06 child care rebate on your tax return and also 2006/07 rebate from the FAO. From next year, the rebate will only be paid through the Family Assistance Office.

We're overweight, marrying less and buying more

According to an Australian Bureau of Statistics (ABS) publication released last week, we're more likely to be overweight, less likely to marry, and consuming more goods and services. A few titbits include:

• The latest figures show that around 7.4 million Australian adults (54%) were overweight or obese. This was an increase of more than 2 million adults from 1995.

• The probability of marrying has declined. If current rates were to continue, 31% of men and 26% of women would never marry.

• The Australian labour force participation rate for women of child-bearing age (15–44 years) rose from 59% to 71% between 1980 and 2005.

• While many goods and services have become more affordable others, such as education and hospital and medical services, have become less affordable because price rises for these services have outpaced increases in income and wealth.

• As our household income has increased so has household spending. The largest increases have been on communication services and goods for recreation and culture.

ASIC warns Aboriginal communities of get rich quick schemes

Source: ASIC Media Release - CA07-13

ASIC has urged consumers from Aboriginal communities to look out for potential scams following concern over an investment scheme that appeared to target communities on the south coast of New South Wales.

ASIC’s warning follows the unearthing of a scheme that proposed investors join a revolving wealth creation scheme that would see them divided up into groups to invest funds every week for three months, then each take turns to dip into the accumulated money pool. Promises made by the scheme included turning ten dollars into $1000 or more.

ASIC viewed this proposed scheme as being illegal under the Corporations Act as each ‘membership’ would have amounted to a unit in an unregistered managed investment scheme. ASIC’s enquiries found that the scheme never got off the ground but we are concerned that Aboriginal communities may be especially vulnerable to promoters of illegal schemes who promise large returns from affordable weekly contributions’, ASIC Executive Director of Consumer Protection, Mr Greg Tanzer said.

'ASIC is committed to ensuring that any investment schemes or scams targeting particular community groups are stopped before any investors join up.’ ASIC encourages all potential investors to carry out safety checks before investing their money. If the investment does not pass the test then these schemes should be reported to ASIC.The safety checks are:

- Search ASIC’s database to see if the company managing the investment holds an Australian financial services licence and is registered.

- Check ASIC’s list of illegal investments available at http://www.fido.gov.au/.

- Ask the seller for their product disclosure statement. This document must clearly and concisely set out information about the product.

Further, ASIC has established a toll free number (1300 365 957) to assist Indigenous consumers with any queries.

Additional information for Indigenous consumers and investors as well more information regarding scams and illegal investments schemes can be found at ASIC’s consumer website, http://www.fido.gov.au/.

Understanding Benefits: Multiple Birth Allowance

Multiple Birth Allowance is an extra payment to help you if you have a multiple birth.

Who Qualifies?
You can get Multiple Birth Allowance if you have three or more children who are born during the same birth for whom you receive Family Tax Benefit.

How much is it?
The Allowance can be added to your Family Tax Benefit. The Australian Government has announced that from 1 January 2008, families will remain eligible until the children turn 16 years of age, or for fulltime students, until the end of the calendar year in which they turn 18.

Parents of triplets will receive an additional $3,179.15 extra per year ($121.94 fortnightly).

Parents of quads or more are entitled to an additional $4237.65 each year ($162.54 p.f).

How to apply?
You do not need to make a separate claim for Multiple Birth Allowance, as it will be paid as part of your FTB.