Oztaxline Tax Tips & News Australia

Payments to an employee in relation to Salary or wages?

2009-10-31T21:02:00.000-07:00

What to do if you have paid your employee’s super guarantee contribution late?

2009-09-24T03:29:00.000-07:00

Super guarantee legislation requires that employer to pay super contributions to their employee’s nominated super fund each quarter by the cut-off date. If you make a payment after the cut-off date, you must lodge a Superannuation guarantee charge statement - quarterly (NAT 9599) and pay a super guarantee charge to the Tax Office. Penalties apply if you fail to comply.
If you have made a late contribution to a super fund for an employee, you may be able to offset that payment against the amount of super guarantee charge you have to pay for that employee for that period.

you have made a late payment to your employee’s super fund,

you made the payment prior to the date your original super guarantee charge assessment was made, and

you lodge the late payment offset election with the Commissioner within four years of your original assessment date.

The super guarantee charge is made up of three parts:

nominal interest on that amount (10% per annum), and

an administration fee ($20 per employee per quarter).

You can only use late contributions to offset the nominal interest and super guarantee shortfall components of the super guarantee charge. You will not be able to offset the administration fee, or other interest or penalties.
If you elect to offset your super guarantee charge with your late payment to the super fund, then:
the late payment is not tax deductible for income tax purposes you cannot revoke the election to use the offset, and any late contribution you use to reduce the amount of your super guarantee charge cannot be used as a pre-payment for current or future periods.
Alternatively, you may be able to use a late contribution for an employee for a future quarter if the contribution is made not more than 12 months before the beginning of the quarter. If you choose this option, the contribution will be tax deductible, but you cannot also claim an offset against the super guarantee charge.

Year 2010 Australia Taxation in Brief

2009-08-21T17:59:00.000-07:00

Companies
An Australian resident company tax rate remain at 30 per cent of its taxable income.

Capital Gains Tax
Captial Gain Tax at 30% is applying to the disposal of assets acquired (or deemed to have been acquired) after 19 September 1985. A net capital gain arises if the capital gain made by a taxpayer in a year of income exceeds the capital loss made by the taxpayer in that year or carried forward from previous years.

Repatriation of profits
Repatriation of profi ts can generally be undertaken at any time as there are no foreign exchange controls on such repatriation. Dividends paid to foreign shareholders are subject to withholding tax (there are some exceptions).

Retirement income contributions
The Superannuation Guarantee legislation generally requires employers to contribute 9% of an employee’s salary or wages into an Australian superannuation fund.
There are some exceptions from the Superannuation Guarantee, including where a Social Security Agreement that Australia has with another country exempts an employee who has been sent to work temporarily in Australia.

Residetns Individual tax rates

Non-Residetns Individual tax rates

Increase in the low income tax offset

2009-07-17T17:57:00.000-07:00

Amendments to the ITAA 1936 provide for an increase in the low income tax offset:
Low Income OffsetEffective Tax Free Threshold
􀂄 from $750 to $1,200 for the 2009 income tax year $14,000
􀂄 to $1,350 for the 2010 income tax year $15,000
􀂄 to $1,500 for the 2011 and later income tax years $16,000

New PAYG schedules will be introduced so that low and average income earners will receive 50% of the cuts through lower PAYG withholding, rather than the full off-set as a lump-sum on assessment of their income tax return.

"Who want your DEBTS.......?????? "

2009-05-08T18:52:00.000-07:00

What plans he has in place????!!!!!! After what he did and or doing......
Does he understand the meaning of Debt? It means - When someone spend the money that he/she does not have.. But who care "Rudd's popularity will rise again with the Government's debt, such as 1st then 2nd then 3rd stimulus package and so on....

Our working mum and dad working family money from
AU$??billion surplus to ......in DEBTS - Not AU$1 million....but AU$??? billion

Should we encourage Rudd'07 to call for early election and then enrol the Rudd regime to the Financial Management course....Especially the Treasurer....

2008/2009 Tax Time is coming...

2009-04-17T17:22:00.001-07:00

Tax Reporting Period: 1/7/2008 to 30/6/2009
Subnisssion Time: 1/7/2009 to 31/10/2009
Lower Income Tax offset: $1,200

Tax Rate:
0 – $6,000 Nil
$6,001 – $34,000 - 15c for each $1 over $6,000

$34,001 – $80,000 - $4,200 plus 30c for each $1 over $34,000

$80,001 – $180,000 - $18,000 plus 40c for each $1 over $80,000

$180,001 and over - $58,000 plus 45c for each $1 over $180,000

Company Tax rate remain unchanged at 30%

Future Generation to carry $42 billions DEBT

2009-02-20T17:06:00.000-08:00

The Rudd Government stimulus package $42 billion, the plan aims to retain 90,000 jobs up to 2011 and to slow down the Australia against the global economic crisis.
The package covering:
• $14.7b for school infrastructure and maintenance and bringing forward funding for trade training centres ($200,000 per school)
• $12.7b for cash bonuses of up to $950 in immediate one-off payments for families with school-age children, farmers, single income families and people undergoing training
• $6.6b for community and public housing to boost the national stock of public and community housing by about 20,000 new homes
• $3.9b for insulation to 2.7 million homes and solar hot water rebates;
• $2.7b in tax breaks for small businesses to provide deductions for some equipment purchases before the end of June this year
• $890m for regional infrastructure and maintenance (such as: roads railway..) for regional and local government

The Rudd government could not guarantee this stimulus package will really work, in term of retaining JOBS, even the experts has advice that there is no format to measure this big hands-out the result.

But in reality, once the $42 billion has spent, this Debt will be passing to our Future Generation shoulders’.

So far, the Rudd Government has no practical agenda on “HOW TO PAY OFF THIS DEBT, while he is still in power?” The Government has denial there will be taxes increment to cover this Debt, his only hope that the DEBT will be automatically vanish when the economy picking-up again.

So let us hope his dream come true for the sake of our Future Generation might carry this heavy loaded burden.

Education Tax Refund - Are you in Computer Business?

2009-01-20T19:44:00.000-08:00

If you are in Computer business either as a Hardware Supplier or Internet Service Provider, with Government commited to education tax refund -- you got to be lucky...

The Education Tax Refund (ETR) helps eligible families and independent students meet the cost of primary and secondary school education.

Your potential buyer can claim the ETR for education expenses if they incur while their child attends primary or secondary school.

The Families and approved care organisations can claim 50% of their eligible educational expenses if:

they received Family Tax Benefit (FTB) Part A for the child, or
a payment was made for the child that stopped them from receiving FTB Part A for that child.

Independent students may also be eligible to claim the ETR.

The maximum they can claim is 50% of eligible expenses up to:

$750 for each eligible child in primary school - that is, a refund of up to $375.

$1,500 for each eligible child in secondary school - that is, a refund of up to $750.

If the buyer expenses exceed their refund limit for the year, any excess can go towards your following year’s refund claim, as long as they are still eligible.

The first year the buyer can claim the ETR is for the 2008-09 year (1 July 2008 to 30 June 2009).

Who is eligible?

The buyer are eligible to claim an Education Tax Refund (ETR) for the period 1 July 2008 to 30 June 2009 if:

The buyer had eligible education expenses for a child, and
the child was in primary or secondary school, and

The buyer received Family Tax Benefit (FTB) Part A for the child, or
a payment was made for the child that stopped them from receiving FTB Part A for that child, or

The buyer's child stopped full-time school during the year and received sufficient income to stop you receiving FTB Part A.

If the buyer is an independent student attending secondary school or a secondary course of education provided at an educational institution such as a TAFE, they may also be eligible.

Australian Government Drought Assistance

2008-11-28T19:25:00.000-08:00

The major changes involving Centrelink delivered drought assistance include:

an increase to the off-farm income exemption from $10 000 to $20 000 when claiming Exceptional Circumstances Relief Payment or Interim Income Support

immediate access to the $5500 Professional Advice and Planning Grant (GST included) for farmers in Exceptional Circumstances (EC) declared areas

an extension of the eligibility requirements of small businesses access to EC assistance, to include small businesses located in towns that are substantially reliant on farm income, have a population of 10 000 or less, and are in an EC area (including prima facia and interim assistance areas)

a grant of up to $20 000 to irrigators in the Murray-Darling Basin to implement water management strategies in response to significantly reduced water allocations

an exit grant of up to $150 000 for farmers who have decided to leave the land, and an increase in the assets limit to access this grant to $575 000 (maximum grant payable if assets below $350 000), and

a further $10 000 is available for advice and re-training, and up to $10 000 for relocation expenses is also available to those who take up the Exceptional Circumstances Exit Grant.

Responsibilities of a Registered Tax Agent

2008-10-03T19:17:00.001-07:00

In Australia, anybody or entity who practicing service to deal with tax issues on behalf of somebody (such as: annual tax return, BAS filing and any other tax related topics), should be a registered tax agent, which mean he/she has submit their application (Qualifications and experiences) to Tax Agents’ Board for registration and the application has been approved, newly registered tax agents are issued with a Certificate of Registration by the Tax Agents’ Board (the Board) which is accompanied by information that outlines their responsibilities as a registered tax agent.

There are lists of responsibilities in detail which you can view the Tax Agents’ Board website. Such as Notifying the Tax Agents’ Board ; Personal tax affairs; Preparation of returns; Registration certificate; Responsibilities to clients as well as Tax Agents’ Board responsibilities.

These are some of updated responsibilities include:
• tax agents are required to quote their full tax agent number on all communications to the Board or the Tax Office

• tax agents must be familiar with signature and declaration requirements and ensure that all returns, requests for amendment, and other documents lodged with the Tax Office have been properly authorised, and

• tax agents are obliged to advise the Board in writing of any changes to their address for service, business address, registered name, business name, or business or ownership structure.

More information about the responsibilities of registered tax agents can be viewed on the Tax Agents’ Board website and any questions can be directed to 13 72 86 Fast Key Code 3 4.

Tax agents should also be aware of their responsibilities regarding the use and disclosure of tax file numbers as outlined in the tax file number guidelines in the Privacy Act 1988. Details of those guidelines are available on the Federal Privacy Law website.

2008 Individual Tax Return

2008-07-04T19:56:00.000-07:00

There are few ways to lodgement individual Tax return, by:

registered tax agent (a list of registered tax agents can be found at Tax Agents' Board;
telephone (only for a short / simple tax return);

the Australian Tax Office's e-tax Internet system (fast, secure and quick refund)

Tax Help community volunteers (this is a network of community volunteers trained to help people prepare their tax returns, e.g. baby bonus claim and claim for refunds of franking credits)

family member and friend (you are legally responsible for the accuracy of the information on your tax return)

post (using "TaxPack" and "Supplementary pack" which available at most newsagents or tax-office shopfront).

Income (from local and overseas accounts) should be included in tax return:

A copy of your group certificate/s (e.g. PAYG payment summary)

Bank statements

Dividend notices and interest payments

Rental income

Capital gains on shares, real estate and other investments

Work allowances

Reportable fringe benefits

Distributions from managed funds

Exempt income

Pensions payments and annuities

Foreign income

Partnerships and trusts

Prizes and rewards

Gifts over $10,000
Summaries of benefits from Centrelink or Veteran's Affairs

Expenses, depreciation, deductions and tax rebates (which might allow you to offset your gross income). This list prepared as below only serves as a guide please get advice from registered Tax agent before you apply:

Property investment expenses: (use "TaxPack supplement")

Rental expenses (e.g. insurance, repairs and maintenance, real estate management fees council rate, mortgages interest, telephone bill and others…)

Expenses associated with real-estate purchases

Capital loss

Capital allowances

Decline in asset value (depreciation)

Tax agent fees and other tax-management costs

Share, business and any income related activities: (use "TaxPack supplement")

General investment expenses (marginal loan interest payment, set-up fee, monthly account fees, business operation costs and others…)

Investment losses

Capital allowances

Share broking expenses

Decline in asset value (depreciation).

Tax agent fees and other tax-management costs

Superannuation (self-employed)

Working expenses: (use "Individual income tax return")

Work-related expenses such as telephone costs, petrol, cars and uniforms

Self-education expenses

Travel expenses

Gifts and donations

Medical expenses - if you expect heavy medical expenses you should lodge for the Medicare safety net as most of these expenses will be tax deductible

Decline in asset value (depreciation)
Tax agent fees and other tax-management costs

Work and education-related books, magazine subscriptions and general publications

Tax rebates such as 30 percent childcare rebate

Superannuation (spouse super)

Union fees

Baby bonus

Summary statements of private health insurance

Income protection insurance statements

Notes

If you earn less than $6000 in a financial year or have had tax withheld from your wages, then you do not need to lodge a return except if you claiming Family type A and / or B benefit you might have to file your return to finalise Centerlink final payment schedule.

If an expense totals more than $300 you will need written evidence, so keep all your receipts (e.g. credit card and bank statements as receipts).

You must be kept any documents and records related to Tax return for up to five years after the lodgement - some may be required to keep longer (e.g. investment transaction paper where you may need it when you selling-example house, shares and others long-term investment items) so check with your registered tax agent or the tax office (ATO)

Do not claim any work-related expenses if your boss already paid for them.

Tips

You can claim $300 worth of work-related expenses without receipts

You can claim 20 percent of medical expenses over $1500 if you keep your receipts (e.g., medical bills and pharmacy receipts)
If you expect large medical bills, lodge for the Medicare Safety Net (this Safety Net allows you to claim up to 90 percent of most medical bills over $1500).

If you work outside, you might be able to claim any costs of sun protection items (e.g. sunglasses, sunscreen and hats.
Maximum low-income tax offset is $750 applied if your taxable income is $30,000 or less. This amount reduces by 4% for each dollar of taxable income over $30,000.

Maximum Mature age worker tax offset is $500 check ATO - Mature age worker tax offset for condition and calculation.

Inflation?? Cut the budget??

2008-05-16T21:06:00.000-07:00

China has been hit by an earthquake, Burma a tornado, and the middle east has war, well what we got? “Inflation” crisis!! I don’t think so, this issue is serious enough to let our pensioners strip themselves at parliament house to protest against the cuts to their benefits shown on the “News” and all over the world. After the Rudd Government budget announcement, I have few questions to ask.

What Rudd’s definition of ‘working families’? In term of income, tax and social benefit entitlements?

Can the government guarantee that this budget cut is going to control inflation? What measures are in place to control inflation?

How long will the pensioners have to suffer? Why will it take Rudd’s government a year to review this issue?

As John Howard mentioned “We do not need a new leadership, but the right leadership.” And Rudd stated during campaign “Australian needs change.” So, we got change. The media, the unions and most of us poured in to polling stations to get rid of Howard and we got our change and new leadership.
Then what????

My advice to Rudd is we all live only once. There will always be inflation or deflation but do our pensioners need to suffer even more because of it.

Australian tax-free threshold $6,000.00 remain unchanged!!!

2008-05-10T19:28:00.000-07:00

Why the Australian Government still not getting the point!!! They know that inflation is rising, mortgage rate is rising, food prices are going up and now petrol price is in the hot pan too. I am surprised the treasurer Wayne Swan is targeting on a medical levy
"Singles will have to earn $100,000 before they pay the 1 per cent surcharge - up from $50,000. Couples will be able to earn $150,000 - up from $100,000 - before they are slugged." This silly move will resulting adding more burden to the hospital waiting list and overload work for hospital staff as well as it may indirectly creating jobs losses in insurance sector. See detail from the Report.

I believe the government should tackle on rising inflation but he should also look into the "human" life as well, how can anybody living in just $6,000 tax-free threshold? This $6,000 threshold free tax have not been adjusted from more than a decade ago. In one hand Labor government acting as a Robin Hood character (steal from the rich and give to the poor)on the other hand they are short handed. Reviewing the $6,000 has been brought out by parties but nothing has been improved.

In 2007, Senator Andrew Murray Spokesperson on Taxation, Finance and Corporate Affairs has suggested "The Australian Democrats propose a phased increase over a number of years in the tax-free threshold from $6 000 (which is less than half the OECD average) to $20 000. People cannot live on $6 000 a year. Australia’s welfare floor is presently around $13 000, the minimum income required for basic subsistence. There is no justification for income taxing someone earning less than this amount" for detail see the Report.

Richard Hackett-Jones from Independent candidate for Queensland stated "- Introduction of a $12,000 tax free threshold for each Australian regardless of age. This will apply to adults and each child in a family and will be fully integrated with welfare measures." for detail see the Report.

Even the former treasurer Peter Costello has mentioned that "From 1 July 2008:
the Low Income Tax Offset (LITO) will increase from $750 to $1,200, providing an effective tax free threshold of $14,000 (up from $11,000) to those taxpayers eligible for the full LITO; the 30 per cent threshold will increase from $30,001 to $34,001; and the 40 per cent threshold will increase to $80,001 and the 45 per cent threshold will increase to $180,001, as announced in the 2007-08 Budget. See detail from the Report

So what is the matter with reviewing the long overdue item. I could like to see the Government has a "swap" prgram, then I will nominated the treasurer Wayne Swan to live on only annually a "$6,000" income. Wake-up tresureer "working family" understand you try to look after them but they need fresh air to breath. Target the right issues.

Working family do not need to see "crocodile tear" but real lifting from the burden and stress.

When does registered entity send BAS/ICA statement to the Tax Office?

2008-03-07T19:59:00.000-08:00

Annual withholding amount	Timing
$25,000 or less	Quarterly
More than $25,000 and up to $1,000,000	Monthly
Over $1,000,000	Special requirements for more frequent payment

How GST work?

2008-01-18T15:15:00.000-08:00

1. GST supply
When a registered business makes a taxable supply, it is required to charge and collect GST. This tax will be remitted to the Australian Tax Office (ATO).
Charge GST on supply = collect GST and payable to ATO
Pay GST on purchases = claim back GST from ATO

When supplying invoice/statement to client, on that document must include:
On the Invoice must has stated “Tax Invoice”; registered entity name; date; client name/cash, ABN; price and GST charge.
Exemption:
if the supply charge is less then $75.00, the registered entity still charge GST on top of $75.00 but the entity does not need to supply Tax Invoice if the client does not needed otherwise the entity always has obligation to supply Tax Invoice when client needed regardless of the amount is.
2. Input taxed supplies
Businesses that conduct activities that are input taxed will not charge GST on those supplies and will not be entitled to claim credits for the GST charged on the various inputs to that activity. Such as: financial services and residential rents are those supplies intended to be input-taxed.
NO GST charge on supply = No collection and No remitment to ATO
Pay GST on purchase = No claim on GST from ATO

3. GST-free supplies
Registered entity will not have to charge GST on supply and will be entitled to a refund of all the GST charged in respect of purchases of goods and services that relate to the GST-free supply. Such as exports, government, education and charitable services, etc are ‘GST-free' .
NO GST charge on supply = No collection and No remitment to ATO
Pay GST on purchase = Claim back GST from ATO

Components of GST:

2008-01-01T19:05:00.000-08:00

Registered entity (person or company) must obtain
ABN (Australian Business Number) for organization and Independent companyfrom ATO (Australian Taxation Office) and Based on the entity major business activities and select following status when registered with ATO:

o GST status or
o GST – Free status or
o GST – input tax status

Exemption:
if the entity yearly turnover or estimated turnover is less then $75.000, the entity does not need to GST be registered with ATO, that mean the entity can not charge GST on the supply and claim GST back from ATO which the entity has spend on purchase. The entity may always face 46.5% of supply amount (see page 5 - withhold supplier who has NO ABN)

Therefore in order to avoid 46.5% withhold and lower down purchases costs most of entity has volunteer to be a registered.

What is a GST?

2008-01-01T18:53:00.000-08:00

10% added into supply

History of GST

2007-10-12T20:07:00.000-07:00

1985 by Paul Keating was dropped by Labour Prime Minister Bob Hawke after pressure from the ACTU, welfare groups and business groups.

Then there was few times refloating in the 1990 till 1998 John Howard campaigned on the GST, with the GST replacing all former sales taxes, as well as applying to all goods and services. The legislation was passed on June 28, 1999 as A New Tax System (Goods and Services Tax) Act 1999. It gained assent on 8 July 1999 and came into operation on 1 July 2000 as 10%.

GST replaces the Wholesale Sales tax (average 22%) and Sates will abolish nine types of taxes:

Financial institutions Duty;

Debit tax;

Conveyancing duties on business property;

Stamp Duty on:
1. Marketable securities
2. Credit arrangement, instalment purchase, arrangement and rental
  (hiring) agreements;
3. Leases;
4. Mortgages, bonds, debentures and other loan securities; and
  Cheques, bills of exchange and promissory notes;
Bed taxes (NSW and NT only)

Business Tax rates in Australia

2007-09-21T20:17:00.001-07:00

Companies generally: including corporate limited partnerships, strata title bodies corporate, trustees of corporate unit trusts and public trading trusts---------30%

Private companies generally taxable income----------30%

Registered organisations (including friendly societies,ordinary class of taxable income-----------30%

complying superannuation class of taxable income-------------15%

Life insurance companies ordinary class of taxable income-------30%

complying superannuation class of taxable income-----------15%

Retirement savings accounts providers:
1)the RSA component of the general fund component--------15%
2)the standard component of the general fund component---30%

Business Tax rates in Australia

2007-09-21T20:17:00.000-07:00

Companies generally: including corporate limited partnerships, strata title bodies corporate, trustees of corporate unit trusts and public trading trusts---------30%

Private companies generally taxable income----------30%

Registered organisations (including friendly societies,ordinary class of taxable income-----------30%

complying superannuation class of taxable income-------------15%

Life insurance companies ordinary class of taxable income-------30%

complying superannuation class of taxable income-----------15%

Retirement savings accounts providers:
1)the RSA component of the general fund component--------15%
2)the standard component of the general fund component---30%

Non-Profit Organizatrion and Fundraising Expenses

2007-05-18T21:38:00.000-07:00

Are fundraising expenses deductible?
For organisations that are not exempt from income tax, fundraising expenses will be tax deductible to the extent they are incurred in deriving assessable income.

EXAMPLE:
A German club that is a taxable non-profit organisation holds an Oktoberfest to raise funds. The sales of food, drinks and souvenirs to members of the public will be assessable to the club. Expenses the club incurred in making these sales will be deductible.

However, there are some deductions that do not have to be incurred in deriving assessable income, for example, superannuation contributions for employees

Is your organisation non-profit?

2007-03-30T18:10:00.000-07:00

Non-profit organisations operate in many areas of society. They can include:

church schools

churches

community child care centres

cultural societies

environmental protection societies

neighbourhood associations

public museums and libraries

scholarship funds

scientific societies

scouts

sports clubs

surf lifesaving clubs

traditional service clubs

A non-profit organisation is one which is not operating for the profit or gain of its individual members, whether these gains would have been direct or indirect. This applies both while the organisation is operating and when it winds up.

Any profit made by the organisation goes back into the operation of the organisation to carry out its purposes and is not distributed to any of its members.

The Tax Office accepts an organisation as non-profit where its constituent or governing documents prevent it from distributing profits or assets for the benefit of particular people – both while it is operating and when it winds up. These documents should contain acceptable clauses showing the organisation’s non-profit character. The organisation’s actions must be consistent with this requirement.

Acceptable clauses to indicate non-profit character are:

Non-profit clause
‘The assets and income of the organisation shall be applied solely in furtherance of its above-mentioned objects and no portion shall be distributed directly or indirectly to the members of the organisation except as bona fide compensation for services rendered or expenses incurred on behalf of the organisation.’

Dissolution clause
‘In the event of the organisation being dissolved, the amount that remains after such dissolution and the satisfaction of all debts and liabilities shall be transferred to another organisation with similar purposes which is not carried on for the profit or gain of its individual members.’

A non-profit organisation can still make a profit, but this profit must be used to carry out its purposes and must not be distributed to owners, members or other private people.

EXAMPLE
A society makes a $40,000 profit for the year. It uses the profit to reduce its debts and provide for its activities in the following year.

2006 2007 Individual Tax Rate

2006-12-03T16:29:00.000-08:00

Resident

$0 – $6,000_________ Nil
$6,001 – $25,000 ___15c for each $1 over $6,000
$25,001 – $75,000__ $2,850 plus 30c for each $1 over $25,000
$75,001 – $150,000__$17,850 plus 40c for each $1 over $75,000
Over $150,000_____ $47,850 plus 45c for each $1 over $150,000

The above rates do not include the Medicare levy of 1.5% (read What is the Medicare levy? for more information).

Tax offsets reduce the tax payable. Tax offsets based on taxable income levels apply to a range of circumstances. For more information read About tax offsets.

Non-Resident
If you are a non-resident for the full year, the following rates apply:

$0 – $25,000 _______29c for each $1
$25,001 – $75,000___$7,250 plus 30c for each $1 over $25,000
$75,001 – $150,000__$22,250 plus 40c for each $1 over $75,000
Over $150,000 ______$52,250 plus 45c for each $1 over $150,000

Non-residents are not required to pay the Medicare levy.

Children

If you are under the age of 18, and receive ‘unearned’ income (for example, investment income), special rates apply. Read Income of individuals under the age of 18.

Claiming self-education expenses

2006-06-30T19:53:00.000-07:00

Self-education expenses are expenses related to a course of education provided by a school, college, university or other place of education. You can only claim self-education expenses that related to your work as an employee at the time you were studying. If your self-education was to help you get a new job, you cannot claim your expenses.

Coaching Expenses:
Generally consists of a series of regular discussions between the participant and a coach, either face to face or by telephone. Personal or executive coaching is generally conducted one-on-one.

Programs with a general focus:
Programs with a general focus consider the participant’s life as a whole and try to help them integrate work and personal life. The topics covered in programs of this type might include: getting on with others: communication, handling change or and decision making.
These discussion topics are too general to be classed as relating specifically to income-producing activities.
The essential character of many of the discussion topics covered in these programs is either capital (career goals) or private (general life goals, lifestyle balance). The essential character of programs of this type is on general lifestyle improvements, rather than improving income-related skills. Therefore, no deduction would be allowed for the costs associated with these programs.
Programs with a significant income-related component
They feature discussions on topics like: project management, leadership, leading change, and or mentoring staff.
Programs of this type generally have a mixed essential character in that they also contain discussion on life directions and personal/work life balance. As there is a more than incidental income-earning character to coaching activities of this type, a deduction can be claimed for the portion of these coaching fees that relates to purely income-related skills.
The proportion of fees to be claimed could, for example, be worked out by establishing the proportion of the time that is spent discussing the purely income-related subjects and applying that proportion to the expenses of participation in the coaching program.

Computer expenses:
You can claim a deduction for the self-education related portion (This means you divide the amount betweenprivate use and work or self-education related used) of:

the cost of repairs to your computer (not included upgrade cost).
the interest on money borrowed to finance the cost of the computer, and
decline in value on the cost of your computer.

"Success Seminars" Expenses:
The material covered in seminars of this type is too general to be classed as relating specifically to income-producing activities. The essential character of many of the topics covered is either capital (career goals) or private (general life goals, lifestyle balance). As the essential character of programs of this type is general, rather than work related, no deduction would be allowed for the cost of attending these seminars.

Exception:
The term ‘success seminar’ is used in advertising many different programs, including some programs that are directly related to income production. Examples might include a ‘management success seminar’ or a seminar on successful selling (provided it was attended by a salesperson). Where the material covered is exclusively or mainly concerned with income production, a deduction may be able to be claimed for part or all of the cost of attending the seminar.

Airline employees expenses:
if you are an airline employee some of the deductions you may be able to claim sunglasses, sunhats and sunscreen lotions – if the nature of your work requires you to work in the sun for all or part of the day and you use these items to protect yourself from the sun at work for example, if you work on the tarmac at an airfield servicing refuelling or loading aircraft.

Flight attendants
Moisturiser and re-hydrating hair conditioner used when working in abnormally dry aircraft cabin conditions – but not make-up or hairdressing expenditure (unless special circumstances apply).
Shoes and hosiery when part of a uniform.
The cost of luggage trolleys and decline in value of luggage.
Pilots
Luggage trolleys.
Medical examination costs associated with the renewal of your work related business licences.
Anti-glare glasses – but not prescription glasses or contact lenses.
Flight engineers
Luggage trolleys.
Anti-glare glasses – but not prescription glasses or contact lenses.
Ground engineers
The cost of wet weather gear to protect clothing from tarmac soiling but not deductions for luggage.

Claimed Work Related Expenses

2006-01-29T20:04:00.000-08:00

Tax Deduction on work related expenses

You can claim deductions for work related expenses you incurred while performing your job.
That may be incurred when you receive any bill or invoice for an expense that you are liable to pay or charged while your are performing your jobs. If the bill or charges including goods and services tax (GST), the GST is part of the total expense and is therefore part of any allowable deduction.

Basic rules
Basic rules to consider before you decide to make a claim:

You must have incurred the expense in the relevant year of income (for example, to claim a deduction in your 2005 income tax return, you must have incurred the expense between 1 July 2004 and 30 June 2005).
You cannot claim an expense that your employer (or any other person) has or will reimburse you for.
You must have incurred the expense in the course of earning your assessable income and it must not be private used, domestic or capital in nature. For example, the costs of normal travel to and from work or buying lunch each day are private. If you incurred an expense that was both work related and private or domestic, you can only claim a deduction for the work related portion of the expense (for example break it into fraction).
You must be able to substantiate your claims with written evidence if the total you are claiming for expenses, not including claims for car, meals allowance, award transport payments allowance and travel allowance expenses is greater than $300.
For any item claiming is $300 or less- you do not need written evidence, but your much be able to show how you work-out the claimed amount.

Prepaid (Advance) expenditure
If you incurred expenditure in a prior income year and apportioned it under the advance expenditure rules and the prepaid service extended into the 2005-06 income year, you may claim the relevant portion of the expenditure in 2005-06.

Allowances
Receiving an allowance from your employer does not automatically entitle you to a deduction. You must still meet the basic rules listed above to make a claim.
You can claim only the total amount you incurred even if the allowance is more. For example, if you received a equpiment allowance of $900 and your equipment expenses were $600, you must include the whole amount of the allowance as income on your tax return and the deduction you can claim is $600.