Tim Cook Tax

09/07/2026

Tax Tips #1 Car Claims

18/12/2025

To all my clients and contacts. I hope you all have a wonderful Christmas and New Year.

I started Tim Cook Tax about a year ago, and it has been a pleasure meeting new people, making connections, helping clients save on tax, providing valuable guidance, and delivering a quality service at a reasonable price.

The first year has been a huge milestone, growing to over 100 clients from scratch. I truly appreciate your support and trust, and I look forward to another great year ahead.

10/11/2025

The Thomas family faces a $13.2 million tax debt after a Family Trust Election (FTE) error. Even an honest mistake like nominating the wrong individual - can trigger top-rate tax on trust distributions.

Don’t risk it: review your FTE, check distributions against the family group, and get professional advice. Small errors can cost big.

Send a message to learn more

11/10/2025

11/10/2025

📦 Understanding Closing Stock Add-Back for Tax Time

If you run a business that holds trading stock (like goods for resale or raw materials), your closing stock at year-end can affect your taxable income.

Here’s how it works 👇

At the end of the financial year, you value your closing stock (usually at cost, market selling value, or replacement value).

The increase in stock compared to last year gets added back to your income — because it represents goods you’ve purchased but not yet sold.

Conversely, if your closing stock is lower than last year, you get a deduction — since it means you’ve sold more of your existing stock.

💡 Example:
If your opening stock was $50,000 and your closing stock is $60,000 — you’ll add back $10,000 to your income for tax purposes.

It’s a common area missed or misunderstood, but it can make a big difference to your taxable profit.

If you’re unsure how your stock levels affect your business’s tax position, get in touch — I can help ensure it’s calculated correctly.

👉 Tim Cook Tax – Helping small businesses stay compliant and save tax where possible.

26/09/2025

💡 Thinking of drawing down on your investment loan? Be careful.

Just because you’ve drawn extra funds from a property investment loan doesn’t mean you’ll automatically get an extra tax deduction for the interest.

👉 The ATO looks at what the borrowed money is actually used for, not just which loan it comes from.

For example:

✅ If you draw funds to renovate your rental property → the interest is deductible.

❌ If you draw funds to buy a car or pay personal expenses → that portion of the loan interest is not deductible.

This can get tricky if the same loan is used for both investment and personal purposes (a “mixed-use loan”), as the interest has to be apportioned.

📌 Tip: Keep investment and personal borrowings separate to avoid messy record-keeping and potential ATO issues.

If you’re considering a drawdown and want to make sure you stay compliant, feel free to reach out — getting it wrong can be costly.

09/08/2025

Not every donation is tax deductible — it must be to an ATO-endorsed Deductible Gift Recipient (DGR).

✅ How to check:
1️⃣ Go to abr.business.gov.au
2️⃣ Search the charity’s name or ABN
3️⃣ Look for “Deductible gift recipient status” – it should say endorsed as a DGR.

💡 Examples of DGR charities:

Australian Red Cross

Cancer Council

RSPCA Australia

St Vincent de Paul Society

Beyond Blue

🚫 Not usually DGR:

Local sporting clubs (unless they have a DGR fundraising arm)

Political parties or candidates

Crowdfunding pages for individuals (e.g., GoFundMe for personal causes)

Overseas charities without Australian DGR endorsement

Social clubs or community associations without DGR status

📝 Tip: Always keep your receipts — the ATO can ask for proof.

📩 Not sure if your charity is eligible? Contact Tim Cook Tax.
📧 [email protected]

14/07/2025

✈️ Did you know? You can claim travel to see your tax agent!

If you travel to meet with your tax agent (like me 😊) to prepare or lodge your tax return, those travel costs are tax deductible. This includes car expenses, parking, or even public transport fares.

It’s one of those deductions many people forget, so keep a note of your trips and receipts.

Need help with your tax return (and maximising your deductions)? Get in touch! 📩

13/07/2025

🩺 Could you be hit with the Medicare Levy Surcharge this tax time?

The Medicare Levy Surcharge (MLS) is an extra tax of 1% to 1.5% that applies to Australian taxpayers who don’t have private hospital insurance and earn above certain income thresholds.

For the 2024–25 financial year, these thresholds are:

✅ Singles:

Up to $97,000 → 0% (no surcharge)

$97,001 – $113,000 → 1%

$113,001 – $151,000 → 1.25%

Over $151,000 → 1.5%

✅ Families (includes couples & single parents):

Up to $194,000 → 0% (no surcharge)

$194,001 – $226,000 → 1%

$226,001 – $302,000 → 1.25%

Over $302,000 → 1.5%
(Add $1,500 to the family threshold for each child after the first.)

👉 Why does this matter?
If your income is above these limits and you don’t have eligible private hospital cover, you’ll pay this extra tax. For example, a family earning $200,000 without hospital insurance could pay an extra $2,000 (1% of income) at tax time.

📌 Tip: Taking out an appropriate private hospital policy can help you avoid the MLS and may also give you peace of mind with your healthcare.

Got questions or need to check if you’re impacted? Reach out or drop a comment below. 👇

22/05/2025

🏡 Can You Claim the Main Residence Exemption on Two Homes? Not Quite… Here's What the ATO Says

When you own property with a spouse, things get a bit more complicated when it comes to claiming the main residence (PPR) exemption for capital gains tax (CGT).

Here’s what you need to know:

🔹 One Main Residence Between You
If you and your spouse own separate homes, you can’t both claim the full main residence exemption on two properties. The ATO treats spouses (including de facto couples) as a single tax unit for the main residence exemption. So, you generally need to choose one property to be treated as your main residence for the same period.

🔹 What if You Both Live Apart in Different Homes?
Let’s say one spouse lives in Property A, and the other in Property B. You still can’t each claim a full exemption on both. You have two options:

Elect one property as the main residence and get the full exemption on that.

Split the exemption: Treat each property as the main residence for half the period (i.e., 50% exemption on each).

🔹 Why It Matters
When you sell a property, if it hasn’t been fully covered by the main residence exemption, you could be up for CGT on part of the gain.

🔹 Strategy Counts
If one property has grown significantly in value, it may be more tax-effective to elect that one as the main residence. A quick chat with your tax adviser (👋 that’s me!) can save you thousands in tax.

💬 Questions? Send me a message or email [email protected]. I’m happy to help.