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Answer library

52 honest answers to real financial questions

Each answer gives you the general position first, explains what it depends on, and shows exactly where a professional adds value — the last 10%.

What Australians are asking right now

Can I claim home office expenses on my Australian tax return — and how does the answer depend on whether I am an employee (who can use the ATO fixed rate of 67 cents per hour for running costs under PCG 2023/1, or the actual cost method for equipment and consumables, but generally cannot claim occupancy costs like rent under TR 2021/1 because a home office for an employee usually lacks an income-producing character), or a sole trader or business owner operating from a dedicated home workspace (who may apportion occupancy costs — rent, mortgage interest, rates, council rates, building insurance — based on the exclusive area used for business as a proportion of total floor area, under ITAA 1997 s 8-1, provided the space is genuinely set aside exclusively for business and not a dual-use space), whether I am required to use the ATO fixed-rate shortcut method (which covers electricity, phone, internet, and stationery but not decline in value of equipment) or whether I can claim actual home office costs, what the ATO's standard evidence requirements are (diary/logbook for mixed-use hours; floor-plan percentage for occupancy costs), and what the honest limit is — general advice cannot assess your individual lease terms, home ownership status, or floor area ratio, so a qualified tax agent or registered BAS agent should confirm which method applies to your specific situation before you lodge?Does my SMSF need to be audited in Australia — and how does the answer depend on whether the SMSF has been operating for all or part of the financial year (all SMSFs must have an independent audit completed by an ASIC-registered approved SMSF auditor before the trustee lodges the annual return with the ATO, under SIS Act s35B and SIS Regulation 8.02A), whether the auditor must be independent of the fund (the same person cannot be both trustee and auditor; the auditor must hold an ASIC-registered SMSF Auditor Number searchable on the ASIC Connect register), what the two components of the audit cover (the financial audit — whether the fund's accounts comply with Australian Accounting Standards; and the compliance audit — whether the fund met SIS Act requirements including the sole purpose test s62, investment restrictions s66, and in-house assets rule s71), what the consequences of non-compliance are (a non-complying SMSF loses its concessional 15% tax rate and all income and contributions are taxed at 45% under ITAA 1997 s295-465), what the ATO reporting obligation is if the auditor finds a contravention (the auditor must lodge an Auditor Contravention Report under SIS Regulation 9A.06 within 28 days), and what the honest limit is — general advice cannot assess your fund's specific investment mix, related-party transactions, or trustee compliance history, so an ASIC-registered SMSF auditor and experienced SMSF accountant should review your fund's position before lodgment?How do I verify that a financial adviser is legitimately licensed in Australia — and how does the answer depend on whether they hold an Australian Financial Services Licence (AFSL) directly (search ASIC's Financial Advisers Register at moneysmart.gov.au/financial-advice/financial-advisers-register to confirm their AFSL number, registration status, and whether they have been banned or disqualified), whether they are an authorised representative of an AFSL holder (the Register shows the licensee's name and whether the adviser is currently authorised), whether they are required to operate under the Best Interests Duty (ASIC RG 175 and s961B Corporations Act 2001), what their list of approved products or services covers (an adviser restricted to a limited product range must disclose that under RG 246), and what the ATO and ASIC red flags are for unlicensed or conflicted advice — such as advisers who promise guaranteed returns, charge undisclosed commissions, or operate without an AFSL or authorised representative number?Do the ATO's Personal Services Income (PSI) rules apply to my contracting income in Australia — and how does the answer depend on whether more than 50% of my income from a contract is for my personal labour or skills (the PSI gateway test), whether I pass one of the four exemption tests (the results test: paid for a specific result, supply my own equipment, and responsible for fixing defects; the 80% rule: less than 80% of PSI income from one client; the unrelated clients test: income from two or more unrelated clients obtained through advertising; the employment test: employing associates who do at least 20% of the main work), what happens when PSI rules do apply (deductions for super, rent, car expenses paid by a related entity are denied), and how the ATO's TR 2022/3 and updated PSI guidance affect contractors operating through a company or trust structure?Is my main residence fully exempt from capital gains tax in Australia — and how does the exemption depend on whether I used the property as my sole place of residence, whether the 6-year absence rule under ITAA 1997 s 118-145 applies, whether I have a second property, and how partial-use periods are apportioned under the ATO's cost-base method?How is cryptocurrency taxed in Australia — and how does the answer turn on whether the ATO classifies me as a trader (ordinary income, deductible losses) or investor (CGT with potential 50% discount after 12 months), applying the ATO's IT 2650 and TD 2014/26 business tests (frequency, commerciality, profit intent), and what records I must keep under the ATO's crypto data-matching program?

General Advice Warning. These answers are general in nature and do not take into account your personal objectives, financial situation or needs. Provided by Global Mutual Funds Pty Ltd (ABN 20 090 555 436, AFSL 222640). Financial Services Guide.