Accounting for Psychologists Newsletter #14

Hi everyone,

I hope you’ve had a productive month.  

Mine has been very eventful.  I’ve just returned from a great trip to Ireland to watch my daughter compete in the World Archery Youth Championships.  She did well, and despite the wet and windy conditions of the Irish summer, came 20^th overall.  She made the most of her opportunity by making sure she met someone from each of the 57 countries taking part.  In my opinion that’s what sport is all about, so I’m very happy about that.

We decided to make the most the trip and went on to visit friends and relatives in France and to explore Munich and Salzburg.  It was absolutely fantastic.  We saw amazing things, met great people and ate a lot of delicious things. It’s been a tricky readjusting to the time zone and going back to routines.  And now there’s all the excitement of the World Cup Soccer. Go Matildas!!

After almost 4 weeks away, I’ve got a bit of catching up to do so I may take a little longer responding to emails than usual.  I apologise for that now.  If it’s something urgent let me know in the subject line, or phone me and I’ll prioritise it.

In this newsletter -

• Important dates for tax
• A big Thank You for referrals
• Don’t panic about your tax return
• Super contribution is now 11%
• In case you missed it last month – Sheridans’ working from home diary excel spreadsheet

Important dates for tax

Thank you!

Firstly, a massive thank you for recommending  Sheridans Accountant for Psychologists to your friends and colleagues.  It's a huge compliment, and we couldn't be more grateful for your trust and support .

Your referrals let us know that we’re providing a quality service and they are a big motivation for us. It’s actually feels really good when someone says “My colleague recommended you.”

Since January this year we’ve welcomed more than 100 psychologists on board. Having more psychologist clients enables us to keep enhancing our skills and knowledge in relation to the financial world for Australian psychologists, making us more effective Accountants for Psychologists than ever before.

We encourage you to keep sharing your positive experiences with your network, allowing more psychologists to discover the advantages of having Accountant for Psychologists on their side.

Your feedback and suggestions are so valuable to us. Feel free to get in touch if you have any thoughts or ideas on how we can further enhance your experience. We're here to listen and evolve based on your needs.

Once again, thank you from the depths of our number-crunching hearts. We look forward to continuing to serve you with the dedication and excellence you deserve.

Your Tax Return

It's time to start thinking about your tax return, but don't panic!

If you've registered Sheridans Accountant for Psychologists for your tax return, rather than the October deadline that regular people have you get an extension til  May next year.

So, while everyone else rushes around to meet those October deadlines, you can sit back, relax, and enjoy the fact that you've got some extra time up your sleeve. And when the time comes we’ll handle the nitty-gritty details, making sure  your tax return process runs smoothly.

While we’re on the subject of tax returns, I’m sorry to say that this year your tax refund might be lower than you’d expect.

The main reason for this is the removal of the Low and Middle Income tax offset.

Last financial year ( 2021/22) financial year there was a Low and Middle Income tax offset (LMITO) which provided a $1,500 offset to people earning between $48,001 and $90,000.  Unfortunately, the LMITO expired on June 30, 2022.

Other reasons why you might find your refund lower than anticipated are:

If you earned more this year,  Congratulations!  That’s great.  Just keep in mind that it might push you into a higher tax bracket and be prepared for that.  Currently the tax brackets are:

Your higher income may also put  a higher repayment threshold for your HECS/HELP debt.  The rates for 22-23 are:

 
In addition, if you’re earning more than $90,000 and don’t have private health insurance you will need to pay the Medicare levy surcharge which is 1.5% on top of the 2% Medicare levy that you already pay .

Having said all that, tax is important.  It keeps our welfare system going and, however flawed it is, we have a lot to be grateful for.   My visits to family in Malaysia and our trip to Indonesia in January really reinforced that for me.   I’m all for paying the right amount of tax (not more - I am an accountant after all), so, if you have any questions about deductions you can make as a psychologist or just about your tax in general, give me a call.  I’d be happy to talk it through with you.

Super is now 11%

Starting this financial year, the superannuation guarantee contribution has risen to 11%. This means that employers are legally obligated to contribute 11% of an employee’s salary to their superannuation accounts.

As an employee, it might not sound like much now, but over time, these contributions can grow to a substantial amount. When you eventually retire, you'll have a tidy sum waiting for you, providing the financial freedom and security you deserve. 

If you’re an employer, make sure you’re paying your staff enough super.  There are massive penalties if you don’t.

If you're self-employed, the responsibility of contributing to your superannuation falls on your shoulders. While it is not mandatory, it's a decision that can significantly impact your future quality of life.

Here's why you need to contribute to your superannuation even if you're self-employed:

Invest in Yourself: By putting away that 11% into your superannuation, you're essentially investing in yourself. Think of it as a gift to your future self, ensuring you have the means to enjoy your retirement to the fullest.

Avoid Relying on Government Pensions: Relying solely on the government pension in your retirement can be a gamble. By bolstering your superannuation, you're taking control of your financial destiny and reducing your dependence on external sources.

Tax Benefits: Contributing to your super can have tax benefits, providing you with potential deductions and lowering your overall taxable income.

Long-Term Financial Security: Planning for retirement requires foresight. Contributing consistently to your superannuation ensures you're actively building your savings for your post-working years.

Working from home diary

This year you’ll need to keep a full year diary of the time you spent working from home in order to claim it as a tax deduction.  So, just in case you missed it last month I’m attaching the Working From Home Diary excel document that I made.  I hope you’ll find it useful.

Have a great month.

Onward and Upward,

Fairuz and the Accountant for Psychologists Team