Moominmama's Taxes 2023-24

I also did Moominmama's taxes for this financial year. It only took me about 2 hours to do both as I am very organized :) You can find previous years' reports here. Here is a summary of her tax return for this year:

Her salary was up 4% this year. Gross income was down 9% mainly because we lost money on futures instead of winning, I think.

Total deductions rose by 19%, mainly because of increased interest costs and futures losses, which are included as other deductions. As a result, net income fell 38%.

Gross tax applies the tax bracket rates to taxable income. This was more than offset by franking credits. So, she gets the franking credits refunded as cash and has a negative tax rate. She also had to pay tax installments. As a result, she should get a large refund, estimated near $12k.

If we get refunds as big as predicted here they will almost be enough to pay private school fees for both children for 3/4 of the year! One term's fees is one of the monetary units I now think in :)

Moominpapa's Taxes 2023-24

I did our taxes earlier this year as Aura sent me a tax statement earlier than in previous years. Here is a summary of my taxes. You can find previous year's taxes here. To make things clearer, I reclassify a few items compared to the actual tax form (such as foreign source income deductions). Of course, everything is in Australian Dollars. 

Overall, gross income fell 6%, while deductions rose 5%, resulting in a fall in net income of 8%.

On the income side, Australian dividends, franked distributions from managed funds, and foreign source income were all down strongly. Tribeca Global Resources paid a much smaller dividend this year, some of my other share holdings were reduced slightly to make new investments, and I didn't get dividends from Fortescue (sold) or Pendal (acquired). I also reduced my holding of 3i (III.L) and so got reduced foreign source income.

My salary still dominates my income sources but again only increased by 3%. Net capital gain is zero due to carryover losses from last year. I am carrying forward $41k in capital losses to next year. Rising interest rates increased deductions, while charitable giving was up 33% after falling last year.

Gross tax is computed by applying the rates in the tax table to the net income. In Australia, you don't enter the tax due in your tax return, but I like to compute it so that I know how big or small my refund will likely be. Franking credits (from Australian dividends), foreign tax paid, and the Early Stage Venture Capital (ESVCLP) offset are all deducted from gross tax to arrive at the tax assessment. ESVCLP was up due to more capital calls from Aura.

Estimated assessed tax fell because of the reduced net income and larger offsets this year.

I estimate that I will pay 24% of net income in tax. Tax was withheld on my salary at an average rate of 32%. I already paid $7,996 in tax installments and so estimate that I should get a refund of $16,942! Let's see.

Moominmama's 2021-22 Taxes

I also did Moominmama's taxes for this financial year. The post about last year's taxes is here. Here is a summary of her tax return for this year:

Her salary was up steeply this year, as last year large superannuation contributions were deducted from it. This year, we redirected those to our new SMSF. Australian dividends were up dramatically as I tried to get more investments in her name. Gross income fell by 15% though because of reduced capital gains.

Total deductions rose by 66%, mainly because of the $20k in contributions to the SMSF. As a result, net income fell 32% mainly I think because of the reduced capital gains this year. 

Gross tax applies the tax bracket rates to taxable income. Most of this nominal tax was eliminated by the 208% increase in franking credits. As a result, she should be assessed for only $1.4k in tax. As this is much less than the tax withheld from her salary, I expect she will get a refund of around $4k.

Moominpapa's 2021-22 Taxes

This year, I've prepared our tax returns earlier than usual as I have already received all the required information. Here is a summary of my taxes. Last year's taxes are here. To make things clearer, I reclassify a few items compared to the actual tax form. Of course, everything is in Australian Dollars. 

On the income side, Australian dividends and franked distributions from managed funds are again up strongly. My salary still dominates my income sources but only increased by 3%. 

A big chunk of foreign source income is from the distribution from Aspect Diversified Futures Fund.  As a result, I am moving that holding into the SMSF. Net capital gain is zero due mainly to some strategic sales ton generate losses. I am carrying forward $99k in capital losses, which is double what was brought forward from last year.

In total, gross income grew 8%.

Deductions fell 47% because last year they included the loss on Virgin Australia bonds. Most deductions are interest including the $14k in other deductions.

Net income rose as a result by 26%.

Gross tax is computed by applying the rates in the tax table to the net income. In Australia, you don't enter the tax due in your tax return, but I like to compute it so that I know how big or small my refund will be.

Franking credits (from Australian dividends), foreign tax paid, and the Early Stage Venture Capital (ESVCLP) offset (none this year as there were no capital calls from Aura) are all deducted from gross tax to arrive at the tax assessment. 

Estimated assessed tax rose 47%.

I estimate that I will pay 28% of net income in tax. Tax was withheld on my salary at an average rate of 31%. I already paid $6,546 in tax installments and so estimate that I need to pay an additional $2,829 in tax.

Moominpapa's 2020-21 Taxes

I am finally able to submit my taxes for this year. Last year's taxes are here. Here is a summary of my taxes. To make things clearer, I reclassify a few items compared to the actual tax form. Of course, everything is in Australian Dollars.

On the income side, Australian dividends and franked distributions from managed funds are  up strongly. My salary still dominates my income sources but is not growing. Interest is Australian interest only and is zero due to no longer holding Australian bonds.

Unfranked distributions from trusts is down strongly because the distribution from APSEC was exceptionally large last year. I have now moved the APSEC fund to our SMSF. Foreign source income is from foreign bond interest and distributions and dividends both from directly held foreign investments and from Australian managed funds. Other income is gains on selling bonds. These aren't counted as capital gains. As we have few bonds any more the amount is small. I used most of my carry forward capital losses this year reducing the net capital gain to zero. I am still carrying forward $28k to next year.

In total, gross income fell 2%.

Increased deductions are mostly due to writing down the loss on my Virgin Australia bonds. This isn't counted as a capital loss and can be deducted immediately. Dividend, foreign source income, and trust deductions are all mostly interest on loans.

Total deductions rose strongly, and as a result, net income fell 9%.

Gross tax is computed by applying the rates in the tax table to the net income. In Australia, you don't enter the tax due in your tax return, but I like to compute it so that I know how big or small my refund will be.

Franking credits (from Australian dividends), foreign tax paid, and the Early Stage Venture Capital (ESVCLP) offset are all deducted from gross tax to arrive at the tax assessment. This time because of the Virgin Australia loss and the ESVCLP offset I should get a large refund.

I estimate that I will pay 24% of net income in tax. Tax was withheld on my salary at an average rate of 31%.

Moominmama's 2020-21 Taxes

I finished Moominmama's taxes for this financial year. I still need the details of my venture capital investment tax offset to complete mine. The post about last year's taxes is here. Here is a summary of Moominmama's tax return:

Her salary was down steeply as she went back to work part time after being on maternity leave at full time, though the full time pay was only paid for part of the year she took off. Dividends managed fund distributions, and foreign source income were all up steeply. A quirk of the system is that foreign gains are treated as income and losses on trading foreign instruments are recorded as deductions. Capital gains were up 148% and dominated her income. This was largely due to recording capital gains on investments that we transferred into our SMSF. On the deductions side, other deductions includes interest for foreign source income and trading losses.

Net income increased 55% and tax 110%. The latter is my estimate of the tax she owes. You don't need to calculate this number on an Australian tax return. Her average tax rate was 20%. Remember, that there are no state income taxes in Australia. Only AUD 2,808 was withheld from her salary. We paid AUD 3.886 in quarterly installments. I calculate that we still owe AUD 11,203.

Income and Tax History

Reading one of ESI Money's millionaire interviews I was inspired to track our income from previous tax returns (all on this blog). While I was at it, I added the tax as well:

Moominmama's income has actually been more consistent. From 2015-16 there was a fall due to taking maternity leaves and a spike last year due to trading income in her account. My income was low at first after we moved to Australia as I didn't have a job and was trying to trade. My tax was actually negative in those years due to franking credit refunds. My income rose to the $50k zone when I got a part-time academic research job and then very steeply when I became a professor. Since then it has drifted slowly upwards.

2019-20 Taxes

I just completed our tax returns for this year. As usual they only took a few hours as I am very well-prepared with spreadsheets updated throughout the year. Preparing taxes is mainly a case of checking that all the spreadsheet links and calculations are correct and refreshing my memory about some of the details of what goes where on the tax form. Last year's taxes are here.

Here is a summary of my taxes (To make things clearer, I reclassify a few items compared to the actual tax form):

On the income side, Australian dividends, capital gains, and foreign source income are all up strongly. My salary still dominates my income sources but is not really growing and we have a pay freeze for next year.

Interest is Australian interest only and is up strongly due to interest on Macquarie, Woolworths, and Virgin Australia bonds.

Unfranked distributions from trusts is up strongly due to the huge distribution from the APSEC fund I invested in just before the end of the tax year. That was a bad move. Foreign source income is mostly dominated by foreign bond interest and losses on futures trading. Other income is gains on selling bonds. These aren't counted as capital gains.

After recording a net capital gain for the first time in a decade last year, I again have zero capital gains and I am carrying forward around $150k in losses to next year. Foreign source income is mostly from futures trading and bond interest. 

In total, gross income rose 6%.

Increased deductions are mostly due to losses on selling bonds. Interest rates are historically low and most bonds that you will be able to buy have higher nominal interest rates. As a result, these bonds are priced above par. If you hold them to maturity you have a loss that is more than offset by the interest received.

Dividend, foreign source income, and trust deductions are all mostly interest on loans.

Total deductions rose strongly, and as a result, net income fell 2%.

Gross tax is computed by applying the rates in the tax table to the net income. In Australia, you don't enter the tax due in your tax return, but I like to compute it so that I know how big or small my refund will be.

Franking credits (from Australian dividends), foreign tax paid, and the Early Stage Venture Capital (ESVCLP) offset are all deducted from gross tax to arrive at the tax assessment. I again expect to pay extra tax.

I paid 30% of net income in tax. Tax was withheld on my salary at an average rate of 32%.

Moominmama's (formerly Snork Maiden) taxes follow:

Her salary was down a lot because of maternity leave. Dividends and capital gains were up strongly due to investment in various listed investment companies and Commonwealth Bank hybrid securities. Foreign source income was down strongly due to losing on trading this year rather than gaining last tax year. As a result, total income fell by 23%.

Deductions rose dramatically, because of recording trading losses as deductions and starting to deduct interest against dividends. As a result, net income fell 42%. Tax was 15% of net income. Tax withheld on her salary was really high for this income level.

Because income was very high last year, Moominmama had to pay tax installments every three months over the last year. As a result, her expected tax refund is almost as large as my expected tax payment. On net, we need to pay about $500 in extra tax.

2018-19 Taxes

Here are my taxes for another year:

On the income side, Australian dividends, capital gains, and foreign source income are all up strongly. I finally ran out of past capital gains tax losses and so recorded a net capital gain for the first time in a decade. Foreign source income is mostly from futures trading and bond interest. My salary still dominates my income sources. As far as replacing salary with other income goes, you need to consider the joint picture with Moominmama's tax return below and the earnings of our superannuation accounts...

Increased deductions are mostly due to increased margin loan interest.

Franking credits (from Australian dividends), foreign tax paid, and the Early Stage Venture Capital (ESVCLP) offset are all deducted from gross tax to arrive at the tax assessment. Unlike in the past, I expect to pay a lot of extra tax.

Gross cash income deducts franking credits and adds the long-term capital gains discount to gross income. The former aren't paid out as cash and the latter are but aren't included in taxable income.
Net after tax cash income then deducts tax and deductions from gross cash income.

Moominmama's (formerly Snork Maiden) taxes follow:

Here there is more dramatic change. Salary was up further in the bounce back from maternity leave and in preparation for the second maternity leave now in progress. Foreign source income was up dramatically due to futures trading. We do more of our trading in this lower taxed account.

Work related travel expenses were down to almost nothing, as the tax year started during our last big trip to conferences etc. I haven't yet managed to do the mortgage inversion that should increase deductions and so deductions are down.

As a result, income and taxes were up dramatically and we will owe a lot of tax. I expect we will have to start making quarterly tax payments from now on.

2017-18 Taxes

Here are my taxes for another year:

A lot of items are down on last year. Foreign source income and unfranked distributions are up because the Winton Global Alpha Fund did well in this tax year. This also means that a chunk of the margin interest is directed to foreign source income and appears under "other deductions". Another new item this year is the Early Stage Venture Capital Limited Partnership offset due to my invest in the Aura Venture Capital Fund. Work-related travel expenses are up because the grants and other funding I had are winding down and so I need to spend more of my own money on travelling to conferences etc.

Franking credits (from Australian dividends), foreign tax paid, and the ESVCLP offset are all deducted from gross tax to arrive at the tax assessment. I expect to get a large refund.

Gross cash income deducts franking credits as these aren't paid out as cash and adds in net capital gains, which were around $60k to income before deductions. Net after tax cash income then deducts tax and deductions from gross cash income.

Looking forward to next year, net capital gains will likely become positive as I won't have any more past losses to deduct. Foreign source income will likely grow further as futures trading comes in.

Moominmama's (formerly Snork Maiden) taxes follow:

Salary was up as Moominmama came off maternity leave. Work related travel expenses were also up as she also went to one of the conferences in Europe. Still, we expect to pay extra tax. Next year there should be more in the way of investment deductions following our mortgage restructuring. There will also probably be a lot more foreign source income.

Moominmama's Taxes 2016-17 Edition

I've filed Moominmama's tax return for this tax year. The tax year runs from 1st July to 30th June in Australia. The figures ignore employer and employee contributions to superannuation (retirement account) which amount to a lot of extra income. Everything is in Australian Dollars of course.

Her salary is down because she went on maternity leave and the average tax rate also falls as a result. Investment income is up though.

Here are the reports on Snork Maiden's taxes for all previous years:

2015-16
2014-15
2013-14
2012-13
2012-13
2011-12
2010-11
2009-10
2008-9
2007-8

Moominpapa's Taxes 2016-17 Edition

I have now completed my tax return. Looks like I should get a $2,870 refund. This huge increase in refund compared to last year is mainly due to the 16% increase in tax witholding by my employer relative to only an 11% increase in tax owed. My taxable income is up by 8%. But my tax is up 11%. This is because the increase in income is taxed at the maximum marginal rate, which is 49%. Gross cash income is before tax income ignoring franking and other tax credits and adding in net undiscounted capital gains (not deleting losses from previous years). It was up 16%.

I again checked what information the government knows about my tax affairs as revealed by the prefilled information on my tax return. They are still missing as much information as last year.  I filed Moominmama's return online for the second time, using the prefilled numbers plus deductions.

Previous years' reports:

2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-9
2007-8

Moominmama's Taxes 2015-16 Edition

I've filed Moominmama's (formerly Snork Maiden) tax return for this tax year. The tax year runs from 1st July to 30th June in Australia. The figures ignore employer and employee contributions to superannuation (retirement account) which amount to a lot of extra income. Everything is in Australian Dollars of course.

Her salary is down because she went on maternity leave and the average tax rate also falls as a result. Investment income is up though.

Here are the reports on Snork Maiden's taxes for all previous years:

2014-15
2013-14
2012-13
2012-13
2011-12
2010-11
2009-10
2008-9
2007-8

Moominpapa's Taxes 2015-16 Edition

I have now completed my tax return. Looks like I should get a $204 refund. My taxable income is up by 2%. But my tax is up 4% despite a 23% increase in deductions and increases in tax credits. I'm a bit puzzled by that but I did move into the top tax bracket. Gross cash income is before tax income ignoring franking and other tax credits and adding in net undiscounted capital gains (not deleting losses from previous years).

This was the first year I checked what information the government knows about my tax affairs as revealed by the prefilled information on my tax return. They are missing a lot of information on my Australian accounts and none on my foreign holdings. Strangely they have dividends for some shares I have with a broker and don't have information on dividends from other companies that I hold through the same broker. Also they have one managed fund account but not the other I hold with the same firm. If I filed a return based on the numbers they know but taking the deductions I could document my return would look so radically different to last year that I think it would raise a lot red flags. But I didn't want to give the government any more information than they have, so I again filed a paper return. I filed Moominmama's return online for the first time, using the prefilled numbers plus deductions.

Previous years' reports:

2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-9
2007-8

P.S. 9 November

I got a more than $900 refund. Don't know what I got wrong in my calculations, but I'm not complaining :)

Moom's Taxes: Part 2

I only underestimated the amount of extra taxes that I owe by $5. I don't know why I also wasn't charged an extra amount of tax for private health insurance. That part of the tax return is complicated to understand. Maybe I filled out Snork Maiden's return incorrectly?

Snorkmaiden's taxes: Part 2

Back in July I computed Snork Maiden's taxes for the 2014-15 financial year. I estimated she owed $169 in extra tax. When I actually submitted her tax return more recently I had refined that to $147. But in fact the letter from the ATO today says she owes $292. Why? There is a $145 "Excess private health fund reduction or refund (rebate reduced) item" on the notice of assessment. I guess our family income turned out to be too high and we won't get as large a tax rebate on private health insurance?

Moom's Taxes 2014-15 Edition

I have now completed my tax return. Looks like I need to pay $590 in extra tax. My salary is flat on last year but my taxable income is up by 5%. Gross cash income is before tax income ignoring franking and other tax credits and adding in net undiscounted capital gains (not deleting losses from previous years). Dividends, franking credits, and foreign source income are all up steeply, but so are most forms of deductions. As a result tax is only up 4%. But because tax withholding is only up 1% this year I owe tax, whereas last year I got a refund.

Previous years:

2013-14
2012-13
2011-12
2010-11
2009-10
2008-9
2007-8

Snork Maiden's Taxes 2014-15 Edition

I've done the calculations for Snork Maiden's tax return for this tax year. The tax year runs from 1st July to 30th June in Australia. The figures ignore employer and employee contributions to superannuation (retirement account) which amount to a lot of extra income. Everything is in Australian Dollars of course.


Looks like she needs to pay extra tax :( Compared to last year the Medicare Levy has increased by 0.5%, which means an extra $450 of tax before anything else So, despite income being up only by 3% taxes are up by 5%. Salary is unchanged because the current Enterprise Agreement has expired and the union hasn't agreed a new deal with the employer. Investment income is up as are tax credits derived from investment income (by more than 50% in the latter case). Deductions are steeply down because there was no unreimbursed work related travel this year. Gifts and donations are up 1100%. Snork Maiden started donating $40 per month to Save the Children a month before the end of the last tax year.

The average tax rate on taxable income is 24.94%. Gross income before deductions and tax credits is not a lot higher than taxable income and so the tax rate on "gross cash income" is only slightly lower. The difference will be much bigger on my own income.

Here are the reports on Snork Maiden's taxes for all previous years:

2013-14
2012-13
2012-13
2011-12
2010-11
2009-10
2008-9
2007-8

Moom's Taxes 2013-14 Edition

I have now completed my own tax return - this goes really fast when you have a good system in place. Looks like I should also get a refund. My salary is only up 3% on last year and my taxable income by 6% but my real after tax cash income (counting realised capital gains and losses in the year they happen) is up 18%. Dividends, franking credits etc. are all up steeply too.

Previous years:

2012-13
2011-12
2010-11
2009-10
2008-9
2007-8

Snork Maiden's Taxes 2013-14 Edition

So, I just finished doing Snork Maiden's tax return for this tax year:
The tax year runs from 1st July to 30th June in Australia. The good news is that she should get a tax refund this year. This is because we now got private health insurance. Income is again up by about 10%. Investment income is up by a lot more than salary as are tax credits derived from investment income. The figures ignore employer and employee contributions to superannuation (retirement account) which amount to a lot of extra income.

Here are the reports on Snork Maiden's taxes for all previous years:

2012-13
2011-12
2010-11
2009-10
2008-9
2007-8