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Tracing the tax maze
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Tracing the tax maze It's /tearing tax time again, which can he the signal to start reaching for those migraine tablets. However, Nicole Lindsay has some advice for those trying to find their way through the tax maze.
S
ome professions are more
Income and allowances
part of the tax return. Questions 21
complex than others, and the
We will begin with income and the
to 25 of the TaxPack cover this
nature of modern nursing
special allowances that most
issue. The rules relating to these
attracts some convoluted tax
nurses receive. If your allowance
expenses are the stuff of
rulings. Finding your way through
appears as separate income on
migraines.
the maze of complicated
your group certificate, then it must
Remember, do not throw away
allowances, deductions and
be included as income when you
anything on paper that verifies
reimbursements is like being a lab
fill in question 7 of the TaxPack.
your expenses. If the total amount
rat stuck in a maze. But, it has to
The more typical allowances are
you claim comes to less than
be done and following some simple
listed below.
guidelines can help alleviate the tax nightmare.
- motor vehicle allowance - telephone allowance
won't need written evidence.
- uniform and
However, you will only be sure of
maintenance allowance
the sum you are claiming at the
- stocking allowance - district allowance - shift allowance - living out allowance - on call allowance - overtime meal allowance - domestic travel allowance
V
$300, then you only have to show how you worked out that sum. You
Reimbursement When your employer reimburses you for any money that you have spent, that payment is not This guide is compiled with the
included as income. On the other
help of the Australian Tax Office,
hand, you cannot claim that
information officers at various
expense as a deduction.
unions and federations, and
end of the financial year. Any sum over $300 requires written evidence. Find a safe place to deposit all of your receipts, and never forget to ask for one. Written evidence consists of receipts from suppliers, a group certificate, a diary or logbook. The evidence that must be provided in this documentation should include the date on which the expense was incurred, the date of the receipt, the goods or services rendered, and the name of the supplier. Even your own logbooks and diaries should maintain this kind of detailed information. The award allowances do not necessarily mean that you can
specialist accountants. It's a
Deductions
shortcut to the kind of information
Deductions for work related
claim the actual amount spent,
you need when it comes to filling
expenses, not reimbursed by your
even if the allowance is greater.
in the TaxPack.
employer, make up the bulkiest
make deductions. You can only
The Tax Department has some
place of business, then that cost
your particular circumstances. You
clothes are allowable deductions.
rules about what constitutes the
is deductible. The trip must be
should probably find out before
• uniforms
difference between your private,
work related, though, and not for
you go away.
If a compulsory uniform is
domestic life, and the assessable
social activities.
Travelling overnight means you
required and enforced at your
income earning life. For instance,
Despite being able to claim for the
may be able to claim expenses for
workplace, then you are allowed
you can only claim a proportion of
above situations, the so called
accommodation, meals and other
to claim a deduction for its cost.'
the deduction if an expense is
normal costs of driving a car
incidentals. Other expenses you
When the uniform policy also
incurred for both private and work
between home and work are not
can claim are car hire fees,
dictates the type, colour and style
purposes.
deductible - even for shift work, or
parking costs, public transport
of shoes, socks and stockings,
The department also considers that
when and where there is no public
fares - bus, tram, train - taxis,
then these items are also
everyday travel and eating
transport.
bridge and road tolls, and air
deductible.
expenses are private. There are
If you are lucky enough to have a
fares.
An item of compulsory clothing,
exceptions, but basically the costs
car provided and maintained by
If the travel was a combination of
such as a distinctive jumper
of food and travel to and from
your employer, then no deduction
work and private purposes, only
sporting an employer's logo, is
work, are not deductible.
can be made for its running
claim for the work related portion.
also deductible.
In the next section, we'll look at
expenses. But remember, to claim
The cost of travel for specifically
If your uniform is not compulsory
the exceptions to that rule.
a travel allowance a log book or
educational purposes should be
or not enforced, then you can only
diary must be kept and it is
included in the question
claim a deduction if it is
Cars and tax
essential to show that as written
associated with education.
As we have already noted, the
evidence.
registered. Your employer can tell you whether or not the uniform is
Clothing and uniforms
registered. The costs of stockings,
Other travel
The clothing and uniform issue is
socks and shoes cannot be
following:
Other travel connected with work
a complex one. It is one of those
registered, and therefore cannot
• If you have to carry bulky
- not the everyday kind - can be
expenses which the ATO generally
be deducted.
equipment by car between your
• laundry
normal cost of travel is not deductible, except for the
claimed.
considers private and therefore
home and your workplace, then
If you want to claim your travel
non-deductible, even if you are
Where a claim can be made for
you can claim a deduction for the
expenses, then you will usually
receiving a clothing, uniform or
the cost of your uniform, you can
costs of running the car. This
require written evidence. However,
laundry allowance. The allowances
also claim for the cost of washing,
depends on the lack of secure
if you receive a domestic travel
must be counted as income at
drying and ironing it. You won't
storage at your workplace.
allowance or an overseas travel
question 7.
need written evidence if the
• The costs of running a car so
allowance and the ATO considers
that you can drive between two
your expenses to be reasonable,
These are the exceptions:
dry cleaning. You will always need
different workplaces.
then you can get away without the
• occupation specific clothing
written evidence for dry cleaning claims.
amount is $150 or less, except for
• You can also claim a deduction
written evidence (except for
Only the traditional (female)
for the costs of driving, while on
overseas accommodation
nurse's uniform is deductible in
duty, from one workplace to an
expenses}.
this category - a cap, a white
Self-education
alternative workplace and then,
When you are away for six or
dress, cardigan and special non-
Self-education expenses refer only
return home or back to work.
more consecutive nights, you must
slip nursing shoes.
to courses that are directly related
• Significantly, that claim for car
observe a travel diary, unless you
• protective clothing
to current employment activities.
costs can also be made when
receive the domestic travel
Protection from injury is provided
You cannot claim a deduction if
driving from home to the
allowance and the ATO finds your
by protective clothing, such as
the study is undertaken in order to
alternative workplace and then, on
claim to be reasonable.
non-slip shoes, lab coats or
find a position, or a new and
to work or straight back home.
What is reasonable? Well, it's what
aprons. Buying, hiring, replacing
different position, nor to establish
• If you travel between two
the ATO says it is or your employer
and maintaining these items
you in a new income generating
workplaces, or a workplace and a
can tell you what is reasonable for
which protect your self and your
activity.
The Tax Department has some rules about what constitutes the difference between your private, domestic life, and the assessable income earning life. For instance, you can only claim a proportion of the deduction if an expense is incurred for both private and work purposes. The department also considers that everyday travel and eating expenses are private. There are exceptions, but basically the costs of food and travel to and from work, are not deductible.
Other expenses
• Home office. The ATO has
You can claim a deduction in
actually made a ruling which
these circumstances:
describes the characteristics of a
• if you have made commission
home office from which a
payments to a nursing agency.
business is run. However, you can
• the cost of renewing your
claim a part deduction for the
Annual Practising Certificate.
costs of running a home
• union fees and professional
office/study where it is a separate
association fees.
room and only used for those
• the work related portion of
purposes: for instance, extra
renting, repairing, or the
heating, cooling and lighting. You
depreciated purchase of various
should keep a diary to keep track
tools and equipment:
of the time spent in the study so
- nurses fob watches - computers and software,
that you can estimate accurately what those extra costs are.
What can you claim for?
- calculators, electronic
• The Financial Institutions Duty
To claim a deduction for the costs
organisers,
imposed on the direct depositing
of self-education, you must be
- answering machines, pagers,
of your salary, wages or
studying at a university, college,
mobile telephones or other
allowances.
school or other place of
telecommunications equipment.
• First aid training courses.
education. The training must give
(You cannot claim for their
• Seminars, conferences and
you a formal qualification that
installation or connection, or
training courses. If these are
enables you to practice your
where they are provided by your
strictly work-related, then the
current profession, business or
employer.) Any tools or
costs of travelling to them are
trade.
equipment bought on or after
claimed under the other travel
Some of the expenses which you
1/7/91, costing less than $300,
expenses question, If they are
can claim are course fees,
or with an effective life of three
studying-related then claim them
student union fees, textbooks,
years or under, can be
in the self-education section.
photocopying and stationery.
depreciated at the rate of 100%.
• If you receive the overtime meal
Specific travelling expenses
(The ATO publishes a Guide to
allowance, then you can claim for
relating to self-education, and
Depreciation if you need more
the cost of meals consumed
depreciation of equipment used
information.)
during overtime. The ATO
during self-education can be
• Work related telephone calls
considers S15 per meal as a
claimed as deductions. The costs
and telephone rental if you are
reasonable amount, and anything
of studying related conferences,
'on call' or must call your
more will require written evidence.
seminars and training courses can
employer when not at work.
be claimed in this question.
• Stationery required for work
The ruling which disallowed the
purposes, such as street
the ATO publishes pamphlets on
first $250 of self-education has
directories, logbooks or diaries.
special occupations. It has a
been amended. The ATO has a special 'Self-education' expenses form that you must fill out so as to claim a deduction for the $250 of each year applicable since June 30, 1993.
If you need more information,
• The cost of journals,
distribution service operating
periodicals and magazines, and
under extended hours. You can
the depreciation of a professional
call it on Freecall 1800 150 150,
library, where reference
and it will send you one. And
materials are relevant to your
don't forget to keep those
employment.
diaries and receipts.
Tracing the tax maze It's /tearing tax time again, which can he the signal to start reaching for those migraine tablets. However, Nicole Lindsay has some advice for those trying to find their way through the tax maze.
S
ome professions are more
Income and allowances
part of the tax return. Questions 21
complex than others, and the
We will begin with income and the
to 25 of the TaxPack cover this
nature of modern nursing
special allowances that most
issue. The rules relating to these
attracts some convoluted tax
nurses receive. If your allowance
expenses are the stuff of
rulings. Finding your way through
appears as separate income on
migraines.
the maze of complicated
your group certificate, then it must
Remember, do not throw away
allowances, deductions and
be included as income when you
anything on paper that verifies
reimbursements is like being a lab
fill in question 7 of the TaxPack.
your expenses. If the total amount
rat stuck in a maze. But, it has to
The more typical allowances are
you claim comes to less than
be done and following some simple
listed below.
guidelines can help alleviate the tax nightmare.
- motor vehicle allowance - telephone allowance
won't need written evidence.
- uniform and
However, you will only be sure of
maintenance allowance
the sum you are claiming at the
- stocking allowance - district allowance - shift allowance - living out allowance - on call allowance - overtime meal allowance - domestic travel allowance
V
$300, then you only have to show how you worked out that sum. You
Reimbursement When your employer reimburses you for any money that you have spent, that payment is not This guide is compiled with the
included as income. On the other
help of the Australian Tax Office,
hand, you cannot claim that
information officers at various
expense as a deduction.
unions and federations, and
end of the financial year. Any sum over $300 requires written evidence. Find a safe place to deposit all of your receipts, and never forget to ask for one. Written evidence consists of receipts from suppliers, a group certificate, a diary or logbook. The evidence that must be provided in this documentation should include the date on which the expense was incurred, the date of the receipt, the goods or services rendered, and the name of the supplier. Even your own logbooks and diaries should maintain this kind of detailed information. The award allowances do not necessarily mean that you can
specialist accountants. It's a
Deductions
shortcut to the kind of information
Deductions for work related
claim the actual amount spent,
you need when it comes to filling
expenses, not reimbursed by your
even if the allowance is greater.
in the TaxPack.
employer, make up the bulkiest
make deductions. You can only
The Tax Department has some
place of business, then that cost
your particular circumstances. You
clothes are allowable deductions.
rules about what constitutes the
is deductible. The trip must be
should probably find out before
• uniforms
difference between your private,
work related, though, and not for
you go away.
If a compulsory uniform is
domestic life, and the assessable
social activities.
Travelling overnight means you
required and enforced at your
income earning life. For instance,
Despite being able to claim for the
may be able to claim expenses for
workplace, then you are allowed
you can only claim a proportion of
above situations, the so called
accommodation, meals and other
to claim a deduction for its cost.'
the deduction if an expense is
normal costs of driving a car
incidentals. Other expenses you
When the uniform policy also
incurred for both private and work
between home and work are not
can claim are car hire fees,
dictates the type, colour and style
purposes.
deductible - even for shift work, or
parking costs, public transport
of shoes, socks and stockings,
The department also considers that
when and where there is no public
fares - bus, tram, train - taxis,
then these items are also
everyday travel and eating
transport.
bridge and road tolls, and air
deductible.
expenses are private. There are
If you are lucky enough to have a
fares.
An item of compulsory clothing,
exceptions, but basically the costs
car provided and maintained by
If the travel was a combination of
such as a distinctive jumper
of food and travel to and from
your employer, then no deduction
work and private purposes, only
sporting an employer's logo, is
work, are not deductible.
can be made for its running
claim for the work related portion.
also deductible.
In the next section, we'll look at
expenses. But remember, to claim
The cost of travel for specifically
If your uniform is not compulsory
the exceptions to that rule.
a travel allowance a log book or
educational purposes should be
or not enforced, then you can only
diary must be kept and it is
included in the question
claim a deduction if it is
Cars and tax
essential to show that as written
associated with education.
As we have already noted, the
evidence.
registered. Your employer can tell you whether or not the uniform is
Clothing and uniforms
registered. The costs of stockings,
Other travel
The clothing and uniform issue is
socks and shoes cannot be
following:
Other travel connected with work
a complex one. It is one of those
registered, and therefore cannot
• If you have to carry bulky
- not the everyday kind - can be
expenses which the ATO generally
be deducted.
equipment by car between your
• laundry
normal cost of travel is not deductible, except for the
claimed.
considers private and therefore
home and your workplace, then
If you want to claim your travel
non-deductible, even if you are
Where a claim can be made for
you can claim a deduction for the
expenses, then you will usually
receiving a clothing, uniform or
the cost of your uniform, you can
costs of running the car. This
require written evidence. However,
laundry allowance. The allowances
also claim for the cost of washing,
depends on the lack of secure
if you receive a domestic travel
must be counted as income at
drying and ironing it. You won't
storage at your workplace.
allowance or an overseas travel
question 7.
need written evidence if the
• The costs of running a car so
allowance and the ATO considers
that you can drive between two
your expenses to be reasonable,
These are the exceptions:
dry cleaning. You will always need
different workplaces.
then you can get away without the
• occupation specific clothing
written evidence for dry cleaning claims.
amount is $150 or less, except for
• You can also claim a deduction
written evidence (except for
Only the traditional (female)
for the costs of driving, while on
overseas accommodation
nurse's uniform is deductible in
duty, from one workplace to an
expenses}.
this category - a cap, a white
Self-education
alternative workplace and then,
When you are away for six or
dress, cardigan and special non-
Self-education expenses refer only
return home or back to work.
more consecutive nights, you must
slip nursing shoes.
to courses that are directly related
• Significantly, that claim for car
observe a travel diary, unless you
• protective clothing
to current employment activities.
costs can also be made when
receive the domestic travel
Protection from injury is provided
You cannot claim a deduction if
driving from home to the
allowance and the ATO finds your
by protective clothing, such as
the study is undertaken in order to
alternative workplace and then, on
claim to be reasonable.
non-slip shoes, lab coats or
find a position, or a new and
to work or straight back home.
What is reasonable? Well, it's what
aprons. Buying, hiring, replacing
different position, nor to establish
• If you travel between two
the ATO says it is or your employer
and maintaining these items
you in a new income generating
workplaces, or a workplace and a
can tell you what is reasonable for
which protect your self and your
activity.
The Tax Department has some rules about what constitutes the difference between your private, domestic life, and the assessable income earning life. For instance, you can only claim a proportion of the deduction if an expense is incurred for both private and work purposes. The department also considers that everyday travel and eating expenses are private. There are exceptions, but basically the costs of food and travel to and from work, are not deductible.
Other expenses
• Home office. The ATO has
You can claim a deduction in
actually made a ruling which
these circumstances:
describes the characteristics of a
• if you have made commission
home office from which a
payments to a nursing agency.
business is run. However, you can
• the cost of renewing your
claim a part deduction for the
Annual Practising Certificate.
costs of running a home
• union fees and professional
office/study where it is a separate
association fees.
room and only used for those
• the work related portion of
purposes: for instance, extra
renting, repairing, or the
heating, cooling and lighting. You
depreciated purchase of various
should keep a diary to keep track
tools and equipment:
of the time spent in the study so
- nurses fob watches - computers and software,
that you can estimate accurately what those extra costs are.
What can you claim for?
- calculators, electronic
• The Financial Institutions Duty
To claim a deduction for the costs
organisers,
imposed on the direct depositing
of self-education, you must be
- answering machines, pagers,
of your salary, wages or
studying at a university, college,
mobile telephones or other
allowances.
school or other place of
telecommunications equipment.
• First aid training courses.
education. The training must give
(You cannot claim for their
• Seminars, conferences and
you a formal qualification that
installation or connection, or
training courses. If these are
enables you to practice your
where they are provided by your
strictly work-related, then the
current profession, business or
employer.) Any tools or
costs of travelling to them are
trade.
equipment bought on or after
claimed under the other travel
Some of the expenses which you
1/7/91, costing less than $300,
expenses question, If they are
can claim are course fees,
or with an effective life of three
studying-related then claim them
student union fees, textbooks,
years or under, can be
in the self-education section.
photocopying and stationery.
depreciated at the rate of 100%.
• If you receive the overtime meal
Specific travelling expenses
(The ATO publishes a Guide to
allowance, then you can claim for
relating to self-education, and
Depreciation if you need more
the cost of meals consumed
depreciation of equipment used
information.)
during overtime. The ATO
during self-education can be
• Work related telephone calls
considers S15 per meal as a
claimed as deductions. The costs
and telephone rental if you are
reasonable amount, and anything
of studying related conferences,
'on call' or must call your
more will require written evidence.
seminars and training courses can
employer when not at work.
be claimed in this question.
• Stationery required for work
The ruling which disallowed the
purposes, such as street
the ATO publishes pamphlets on
first $250 of self-education has
directories, logbooks or diaries.
special occupations. It has a
been amended. The ATO has a special 'Self-education' expenses form that you must fill out so as to claim a deduction for the $250 of each year applicable since June 30, 1993.
If you need more information,
• The cost of journals,
distribution service operating
periodicals and magazines, and
under extended hours. You can
the depreciation of a professional
call it on Freecall 1800 150 150,
library, where reference
and it will send you one. And
materials are relevant to your
don't forget to keep those
employment.
diaries and receipts.