Latest news with #AngelZhong
7NEWS
25-06-2025
- Business
- 7NEWS
Tax returns: The surprising things you can claim and the ATO fines you risk
The new financial year is just around the corner and that signals one thing — tax time. As we move towards July 1, the Australian Taxation Office (ATO) has revealed the deduction claims it will be keeping a very close eye on this time and warned there are penalties for those who provide false information. It also shared its 'three golden rules' for claiming a legitimate work-related expense, while tax experts have encouraged Australians to do their research to get back everything they are entitled to. What will the ATO be cracking down on this year? The tax office has already highlighted that work-related expenses, working from home (WFH) deductions and side hustles will be under the microscope this year, claiming these are areas that produce 'frequent errors'. 'For WFH deductions, the revised fixed rate method allows you to claim 70 cents per hour covering electricity, internet, phone, and office consumables,' RMIT University finance professor Angel Zhong said. 'However, you must keep detailed records of your hours worked and ensure you're not double-dipping by claiming additional expenses already included in the fixed rate. 'You can't claim rent or mortgage interest unless you're running a business from home and personal items such as coffee, tea, or snacks are not deductible. 'Similarly, you can't claim your entire internet or phone bill, only the portion that directly relates to your work.' More than 10 million people claimed work-related deductions in 2024, and many lodged expenses relating to working from home. 'Work-related expenses must have a close connection to your income earning activities and you should be prepared to back it up with records like a receipt or invoice,' ATO Assistant Commissioner Rob Thomson said. 'If your deductions don't pass the 'pub test', it's highly unlikely your claim would meet the ATO's strict criteria.' Experts say the ATO's target areas can be 'complicated and hard to understand'. 'That's why it's important to keep clear records and ask a tax agent or accountant if you're unsure,' Two Sides Accounting director Natalie Lennon told 'Being honest and organised makes tax time easier and helps avoid problems.' What can I claim? Deductions must be related to purchases made before June 30 if you intend to claim them in this tax return. What you can claim will depend on what you do for work. The ATO and accountants know the difference. 'It is important that taxpayers take reasonable care when lodging as penalties may apply where people have not taken reasonable care and increase when they are reckless or intentionally provide false information,' Thomson said. More than $2.2 billion in penalties were dished out to taxpayers who failed to comply with their obligations in 2023-2024. 'Cost of living is front of mind for many taxpayers and it is tempting to increase tax deductions to generate a refund but there are risks with trying to push the envelope with the ATO,' Chartered Accountants ANZ's tax lead Susan Franks told 'The ATO has sophisticated data-tracking through its data-matching programs which can verify disclosures in tax returns and can impose penalties and interest.' Among the 'most outrageous' work-related deduction attempts submitted last year was a taxpayer who tried to claim a luxury yacht as a work expense because 'they might have some business to do' on some islands, and an unnamed fashion industry manager who wanted to be reimbursed more than $10,000 they spent on luxury clothing to attend dinners and other functions. Three golden rules for deductions While it is important not to exaggerate work-related claims, it is important not to shift into auto-pilot either. 'Take time to seriously consider what's different about your expenses this year and think about what you could claim,' CPA Australia tax lead Jenny Wong said. 'Maybe you travelled more for work and were not reimbursed by your employer for meals or other travel essentials. Or maybe you started a new job where you had to buy tools, subscriptions, or pay for training and security clearances, for example. 'Check what type of expenses you could claim that are relevant to your type of work. We strongly advise against using AI advice when preparing your tax return.' The ATO's 'three golden rules' for claiming a deduction for a work-related expense are: You must have spent the money yourself; The expense must directly relate to earning your income; You must have a record (usually a receipt) to prove it. 'We have 40 occupation and industry specific guides on our website which you can use to work out what you can or can't claim as a work related deduction specific to your job,' Thomson said. 'The guides also explain the records you need to keep and income you need to include in your return.' Surprising expenses that you can claim on Handbags: 'To carry items you carry and use for work, such as laptops, tablets, workpapers, protective equipment or diaries — there is no limit, so it can be designer. However, if it's valued at over $300 it will need to be claimed over its useful life.' — Natalie Lennon Sunscreen: 'If you work outdoors (think tradies, landscapers, builders, even some hospitality staff), sunscreen is a legitimate protective equipment expense.' — Natalie Lennon Smartwatches (eg Apple Watch): 'If you require some of the smartwatch's functions as an essential part of your employment activities, you can claim a deduction for the expenses related to your work-related use of the smartwatch. But beware, as the rules are strict on this one.' — Natalie Lennon Your home office: 'Your computer desk and chair are tax deductible as long as you paid for them yourself. If you travel to the office, you could even claim for the laptop bag you use.' — Jenny Wong Identity checks: 'If you need to pay out of your own pocket for certain identity checks and documents, such as a blue card for a childcare worker, this can be tax deductible.' — Jenny Wong Keeping clean: 'If you work in a job that requires interaction with lots of customers and surfaces, you can even claim the cost of items like gloves and hand sanitiser. This could be a retail job, or train station attendant, for example.' — Jenny Wong What happens if I lodge a dodgy return? Franks said the ATO would call on its sophisticated data analytics to determine if anything looks 'outside the ordinary'. For example, are your claims for expenses higher than others in the same line of work, and can you back up expenses with records? Lennon said large or unusual deductions, inconsistent income reports, and claiming personal expenses as business costs are all red flags. 'The best way to avoid an audit is to keep clear records and only claim what you're entitled to,' Lennon said. The ATO says the odds of an individual being audited 'depend on whether they have included all their income in their return, and the claims they make on their tax return'. 'When a return is lodged, we use sophisticated programs and technology to detect income that hasn't been included or incorrect claims, which includes data matching against third party data,' Thomson said. When is the cut-off to lodge my tax return? October 31 is the deadline for Australians lodging their return themselves. For those using the services of a registered tax agent, you have more time — until May the following year. But make sure you have reached out to them and have the ball rolling before the start of November. Will I be fined for missing the October 31 deadline? If you fail to lodge in time, the ATO may impose penalties, starting with a $330 fine. 'The longer you leave it, the more you could owe,' Lennon said. If you are liable, the ATO will notify you in writing. 'We will consider your circumstances when deciding what action to take,' Thomson said. 'It is important that taxpayers take reasonable care when lodging as penalties may apply where people have not taken reasonable care and increase when they are reckless or intentionally provide false information. 'Our preferred approach is to work with taxpayers to help them meet their tax obligations.'
ABC News
05-06-2025
- ABC News
What are your options when taking money overseas?
What do you look forward to the most before an overseas holiday? It's probably not the admin. Deciding how you're going to take money overseas is one of those tasks that can seem overwhelming. Here's what experts have to say about your options while travelling. If you're planning to use physical currency overseas, Angel Zhong, a professor of finance at RMIT University in Naarm/Melbourne, says you will often get a better exchange rate (converting your Australian currency into local currency) once you've reached your holiday destination. While converting cash into foreign currency in Australia is possible, services in convenient locations (such as the airport) are typically more expensive. Professor Zhong says she wouldn't carry thousands of dollars' worth of currency around on holiday with digital payment so widely accessible. Also, if you're leaving or entering Australia with more than $10,000 in cash, it needs to be declared. In many cases you can use an existing credit card or debit card while travelling overseas. Australian consumer advocacy group Choice says "Visa and Mastercard credit cards are accepted almost everywhere for purchases and cash withdrawals". Professor Zhong says it can be convenient to use your ordinary debit card or credit card, but you would "usually incur some foreign transaction cost". Before using an existing card overseas, she suggests checking the terms and conditions. We'll go into this in more detail shortly. Another option Choice highlights is low-fee debit cards "that don't charge a currency conversion fee" with a competitive exchange rate set by Visa or Mastercard. Source: Moneysmart If you're looking to take a card overseas, the Australian Securities and Investments Commission (ASIC) recommends shopping around, as exchange rates can vary between banks and travel card providers. When reviewing the terms and conditions of cards, you want to look out for fees. ASIC says charges may include "a foreign currency conversion fee, an overseas transaction charge or an additional cash advance fee (for credit cards)". Again, being across the terms and conditions of cards is key. While some cards have no foreign transaction fees, Professor Zhong says "it could be the case that their conversion rates are high". It can be difficult to compare exchange rates between lenders and their different cards (including travel money cards) because it varies from day to day. She says comparison websites may help. A travel money card, travel debit card or travel cash card is another option offered by banks and other lenders, such as airlines and travel agents. An ASIC spokesperson says, "You can add money in your preferred currency to most travel money cards before you leave Australia" and "most allow you to top up your card with extra currency if you need it while you're travelling." A prepaid travel card may even help you stick to your getaway budget and manage exchange rates because it can be loaded with a locked-in exchange rate before you depart. Choice notes that travel money cards can have a higher exchange rate margin (or more expensive mark-up), and a no-fee debit card may be a better option. Travel cards "are better suited to longer trips … [and] usually won't be worth getting if you're only taking a one-off short trip, as some come with fees for closing or inactivity". If you're withdrawing cash overseas, Choice says a travel debit card or travel money card is generally a better option than a credit card — which can involve a cash advance fee and high interest rates Professor Zhong says you need to set up these cards before you travel, so you'll need to be more organised (compared to using one you already have). While your normal credit or debit card may have a high credit limit, such as $5,000 a travel card will often have a limit of $500 or $1,000, Professor Zhong says. This means travel money cards aren't usually a good candidate for hotel security deposits, as a pending charge could leave you without access to your money. Choice also advises checking that a card supports the currency you'll need. Not every card will work with every currency. This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.
ABC News
27-05-2025
- Business
- ABC News
Here's what you need to know about credit card reward points
Movie tickets, department store wares and flights are just some of the things people 'pay' for using credit card reward points. Perhaps you've seen someone relishing their business class upgrade, partly 'paid' for with points, on social media. But, Angel Zhong — a professor of finance at RMIT University in Naarm/Melbourne — says points also come with risks. If credit card point programs are a mystery to you, here's what you need to know. Credit card rewards schemes, including point programs, vary from lender to lender, but the basic principles of each have a lot in common. Professor Zhong says, "it really depends on the specific terms and conditions, but usually you get points for every dollar that you spend." Reward points can then be spent on perks and benefits which differs between credit cards and institutions, but can include gift cards, retail purchases and discounted travel offers. These type of credit cards may "also offer exclusive perks", such as "access to airport lounges, travel insurance and concierge services". The government's MoneySmart site says credit card reward programs "sound good" because "you could earn points you can use to buy movie tickets or flights" just by spending on the card. Toni Eager is a senior marketing lecturer at the Australian National University in Canberra, on the land of the Ngunnawal and Ngambri people. She says rewards schemes, including points are "a way of keeping customers". "People might like certain reward schemes more than others, or it's something that keeps people using the card that they already have rather than going out and looking for cheaper interest rates." Dr Eager says consumers need to be financially literate to get good value from reward points schemes, which reward spending. "Whether it encourages people to overspend or changes their spending habits comes down to financial literacy." Consumer group Choice says credit cards are not for everyone. "Unless you're a big spender, credit cards with rewards schemes are mostly a gimmick, and they nearly always charge hefty annual fees and high interest rates." These costs can "easily nullify the rewards". Professor Zhong also says to be mindful that "you pay for what you get." Credit cards with extra perks will also have higher fees and interest rates. "It makes them more costly if you don't pay your balances in full or on time." She also warns that banks and lenders can change their loyalty programs including the value of points, and points can also expire. "Read the terms and conditions carefully, especially when it comes to the changing value of your points." Prfoessor Zhong says, "point hackers" are people who regularly open and cancel credit cards. The practice is known as "credit card churning". "You open multiple credit cards to take advantage of the bonuses, and then you close them and repeat the process again with new cards." She says many lenders waive the first annual fee for these types of credit cards, which can also come with bonus offers (additional points or cashback for example) and a zero per cent balance transfer fee for a set period. The card can then be cancelled before the annual fee for the second year is charged. Initial bonuses usually come with conditions, such as "spending a certain amount in the first three months". Professor Zhong says credit card churning can lower your credit score, and "frequent credit card application and cancellation might be a bit of a red flag" if you're applying for a mortgage. Doing this with different credit cards simultaneously increases the risk you miss a repayment, or you fail to make full use of the rewards, she says. MoneySmart recommends looking for a low interest rate and features you'll use in a credit card. If you're considering a credit card with a reward scheme, "check if the benefits you get are worth the higher cost". Professor Zhong says to "choose a card that aligns with your spending habits so that you can maximise the points [and] maintain a healthy financial lifestyle".
ABC News
12-05-2025
- Business
- ABC News
FULL SHOW: the new frontbench, recession indicators + why fish keep washing up dead
Prime Minister Anthony Albanese has revealed his new frontbench. So who's in, who's out and what will they do? And here's why gold bars, makeup and memes have become recession indicators. Plus how citizen scientists track dead fish in South Australia. Listen now: 01:12 - Who's on the new frontbench? 05:27 - What happened with the Nationals leadership? 10:48 - Gold prospecting in outback Australia 15:27 - What are actual recession indicators? 21:45 - Explaining South Australia's dead fish problem Guests: Shalailah Medhora, political reporter, triple j hack Shalailah Medhora, political reporter, triple j hack Angel Zhong, finance professor, RMIT Angel Zhong, finance professor, RMIT Brad Martin, South Australia project manager, Ozfish Get the whole story from Hack:
Yahoo
12-04-2025
- Business
- Yahoo
Woolworths price warning as supermarket makes little-known move: 'Dominate'
The ready-made meal sector has evolved dramatically from the ice-encrusted microwaveables relegated to the supermarket freezer section. Now, Coles and Woolworths shelves are packed with calorie-controlled fresh fare targeted to the time-poor Australians. The booming industry is expected to be worth $1.9 billion in the next five years, with Woolworths making a major play at the sector this week that could be a concern for shoppers. The supermarket giant stocks Woolworths branded meals, now including larger offerings to cater to families, and brands like Strength Meal Co, which retail for about $9.95 depending on specials. Many wouldn't know Woolworths was cleared by the Australian Competition and Consumer Commission (ACCC) to acquire Beak & Johnston Holdings, the company that owns Strength Meal Co, on Wednesday. Woolworths told Yahoo Finance the proposed acquisition would help meet customers' growing demand in the expanding industry. But, there are concerns the Fresh Food People could drive costs up by blowing the rest of the competition out of the water. RELATED 6am lines for Costco warehouse opening in $118 million move to compete with Coles, Woolworths Woolworths cleared to make major move into $1.9 billion sector: 'Strong price competition' Multi-millionaire's blunt retirement message for Aussies: 'Work until 90' 'While Woolworths may initially keep prices competitive to attract customers, reduced competition in the long term could lead to price increases, especially if Coles and Woolworths continue to dominate the sector,' RMIT professor of finance Angel Zhong told Yahoo Finance. 'However, Woolworths may expand its ready-made meal offerings, providing more variety and convenience for shoppers, particularly in urban areas where demand for quick meals is high.' That could include at Woolworths' more than 100 Metro stores dotted around the country, which are smaller stores catering to shoppers looking for convenience and wanting to 'grab and go'.Zhong said the impact on consumers would depend on how Woolworths decides to integrate Beak & Johnson's products into their offerings. 'While large acquisitions can sometimes lead to higher prices due to reduced competition, Woolworths might also leverage economies of scale to keep prices competitive,' she said. The competition watchdog found the acquisition was 'unlikely' to have a substantial anti-competitive effect and Woolworths welcomed the move. 'Woolworths has been a customer of Beak & Johnston Group (B&J) for more than 37 years with the company providing a range of popular Woolworths-branded products including lasagnes, ready meals, and pies,' a Woolworths spokesperson told Yahoo Finance. Woolworths currently holds a minority 23 per cent interest in subsidiary and ready meal provider B&J City Kitchen. Its acquisition is still subject to approval from New Zealand's regulator. The ready-made meal industry has been growing in popularity as time-poor consumers look to cut back on meal preparation, with Zhong noting there had been increased demand post-pandemic due to consumers' busier lifestyles. The biggest players in the industry are My Muscle Chef, Lite n' Easy, McCain Foods and Vesco Foods, who sell Lean Cuisine in Australia. Coles subsidiary Chef Fresh previously purchased rival ready-made meal supplier Jewel Fine Foods in 2020, after it went into voluntary administration. Ibisworld has forecast revenue from the prepared meals production industry to increase by 1.1 per cent over the next five years to $1.9 billion. Woolworths told Yahoo Finance the proposed acquisition would continue its focus on meeting customers' growing demand in the 'expanding' industry. 'Customers are looking for value and convenience now more than ever, and we're seeing significant opportunity to deliver this in the ready meal category,' a spokesperson said. Coles, meanwhile, has reported sales of 'convenient food solutions' increasing by 50 per cent over the past three years, with the supermarket finding nearly eight out of 10 shoppers decide what they will eat within a day of consumption. Zhong said Woolworths was strengthening its position in the growing ready-made meal market and it could make it harder for smaller companies to compete with the supermarket giants. 'To stay competitive, smaller companies might need to innovate more aggressively, focusing on niche markets or unique product offerings that differentiate them from the major players,' Zhong said. "Woolworths' acquisition could lead to changes in supply chain dynamics, potentially affecting suppliers and distributors within the sector." Coles and Woolworths currently control around 65 per cent of Australia's grocery market. 'This acquisition further entrenches their dominance, making it harder for independents like IGA, Aldi, or specialty meal providers to compete,' Zhong in to access your portfolio
