Author: Eugene Dou

by Eugene Dou Eugene Dou No Comments

Tax Change Checklist 2019, Be Prepared

A Tax Change Checklist is critical for individuals and businesses to ensure they are up to date with relevant legislation amendments which may impact their financial affairs.

The WNR Business Consulting team have put together a list of the major changes you need to be aware of, for further information please Contact Us.

INDIVIDUALS:

  • The individual income tax rate thresholds will be progressively increased under a seven-year personal income tax plan beginning from 2018/2019
  • A low and middle income tax offset is available for the 2018/2019 until 2021/2022
  • Individuals with superannuation account balance of $500,000 or less can make catch-up superannuation contributions using their unused concessional contributions caps for up to five years from 01 July 2018
  • Individuals may withdraw voluntary contributions made under the first home super scheme up to certain limits together with associated earnings for the purposes of purchasing their first home from 01 July 2018
  • Individuals aged 65 years or older can make down-sizer contributions of up to $300,0000 into their superannuation using the proceeds from the sale of their main residence where sale contracts are exchanged on or after 01 July 2018
  • Whistle blowers who disclose information to the ATO on tax avoidance behaviour will be provided with protection from 01 July 2018 as part of a major change in Tax for 2019
  • The car expenses cents per kilometre rate is increased from 66 cents to 68 cents for 2018/2019
  • A new child care subsidy is available from 2 July 2018 to support families where both parents work
  • The maximum voluntary excess levels for hospital cover products providing individuals an exemption from the Medicare Levy Surcharge will increase from 2018/2019
  • For purposes of claiming expenditure towards the film producer offset, an Australian residency requirement applies to individuals that perform services outside Australia for films that require a foreign location to be used for principal photography from 1 July 2018

Not sure of how these changes will impact you? Book a Consult

COMPANIES AND SMALL BUSINESS:

  • The lower corporate tax rate of 27.5% applies for qualifying companies that have an aggregated turnover of less than $50 million for 2018/2019 and have no more than 80% of their assessable income consisting of base rate entity passive income
  • The definition of a significant global entity will be expanded commencing on or after 1 July 2018
  • The immediate write off for assets costing less than $20,000 by small business entities has been extended to 30 June 2019
  • With effect from 8 May 2018, an additional basic condition will apply in relation to the CGT small business concessions where the CGT Event involves a partnership interest to prevent the concessions from being available for Everett Assignments

OTHER INCOME TAX CHANGE CHECKLIST UPDATES:

  • Tax-exempt entities becoming taxable after 8 May 2018 will not be entitled to tax deductions in relation to repayment of the principal of a concessional
  • A new regime for limited partnership collective investment vehicles is proposed to operate from 1 July
  • Venture capital tax concessions are available for investments in financial technology businesses (“fintech”) made on or after 1 July
  • Legislation has been introduced to reform the R&D tax incentive for income years starting on or after 1 July
  • Legislation has been introduced that will amend the calculation of balancing adjustment amounts for R&D assets from 1 July
  • Amendments to the thin capitalisation rules requiring compliance with accounting standards for valuation of assets, liabilities (including debt capital) and equity capital are proposed to apply from 7.30 pm (AEST), on 8 May 2018.
  • Amendments to the thin capitalisation rules to prevent double gearing structures are proposed for income years starting on or after 1 July
  • From 1 July 2018, key barriers to the use of asset-backed financing arrangements will be
  • From 19 August 2018, primary producers can claim an immediate deduction for capital expenditure on fodder storage

SUPERANNUATION FUNDS:

  • From 1 July 2018, non-arm’s length expenditure is proposed to be taken into account when determining whether the non-arm’s length income taxation rules apply to a
  • A fund member’s share of the outstanding balance of a limited recourse borrowing arrangement that commenced on or after 1 July 2018 is proposed to be included in their total superannuation balance in certain
  • The release authority regime governing the release of superannuation money following the issue of an excess concessional or non-concessional contributions determination, or an FHSS determination, or an assessment of Division 293 tax will come into effect from 1 July

SUPERANNUATION GUARANTEE:

  • The Superannuation Guarantee (Administration) Regulations 2018 have been made to replace the Superannuation Guarantee (Administration) Regulations 1993 which sunset on 1 October
  • Proposed amendments will give employees under workplace determinations or enterprise agreements made on or after 1 July 2018 the right to choose their superannuation fund under the choice rules, and provide that amounts sacrificed under an employee salary sacrifice arrangement cannot reduce an employer’s mandated SG contributions.
  • A one-off 12-month amnesty period is proposed from 24 May 2018 to 23 May 2019 to encourage employers to self­ correct historical SG non-compliance, and allow employees receiving superannuation contributions from multiple employers to apply to the Commissioner to opt out of the regime in respect of an

A concerned retiree or not sure of how these changes impact your SMSF? Book a Consult

GOODS AND SERVICES TAX:

  • Purchasers of newly constructed residential premises or new subdivisions are required to remit GST directly to the ATO from 1 July
  • Offshore supplies of low value goods to a consumer will be treated as being connected with Australia, and therefore may be subject to GST from 1 July
  • The luxury car tax on cars re-imported into Australia, following a refurbishment overseas, will be removed from 1 January

TAX CHANGE CHECKLIST, OTHER CHANGES:

  • Rules on director penalties and security deposits for tax-related liabilities will be
  • The Single Touch Payroll reporting framework starts on 1 July 2018 for substantial employers.
  • New offences have been introduced to deter the production, use and distribution of electronic sales suppression tools from 4 October
  • From 1 July 2018, the taxable payments reporting system will be extended to contractors in the courier and cleaning
  • Australia has signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The measures in the MLI will enter into force for Australia on 1 January 2019
  • From 1 July 2018, purchasers of certain new residential real property must withhold an amount equivalent to the GST from the contract
  • The ATO will apply penalty relief to inadvertent errors in tax returns and activity statements made by eligible taxpayers that are due to failing to take reasonable care or taking a position on income tax that is not reasonably arguable from 1 July
  • New fuel tax credit rates are applicable from 1 August

Your Tax Change Checklist:

  • Make sure you mark in your calendar relevant dates that could impact your business and work backwards from these to ensure a plan is formulated and implemented in time.
  • Make a list of relevant changes that may impact you and consult your qualified accounting or financial adviser.
  • If unsure of the implications of the above listed changes, do feel free to Book a Consult with a member of our team, the right advice can save you time, money and unnecessary worry.

For the latest news on Tax Changes for 2019 please visit the Australian Taxation Office website or click this link https://www.ato.gov.au/general/new-legislation/latest-news-on-tax-law-and-policy/

by Eugene Dou Eugene Dou No Comments

Federal Budget Overview 2018/2019

Federal Budget Overview 2018/19, Welcome to WNR Business Consulting’s analysis of the federal budget. In our report we highlight the key area’s of the budget which impact on Wage Earners & Business Owners.

Personal income tax cuts, incentives for small to medium-sized businesses, moves to keep older Australians working for longer and measures to curb the black economy are among the upside of the budget. The budget is forecast to move into surplus by 2019/20 from a A$18.2 billion deficit in 2017/18, and Gross domestic product is forecast to grow by 2.75 percent in 2017/18, accelerating to 3 per cent in 2018/19 and in 2019/20. Big spending on seniors and infrastructure, and plans for a personal tax cut are based on robust economic growth over the forward estimates.

Sectors which are supported and encouraged by the budget:

Federal Budget Overview – Wage earners

From 1 July 2018, the top threshold of the 32.5 per cent tax bracket will rise from A$87,000 to A$90,000 which will prevent about 200,000 people from entering the 37 per cent tax bracket in 2018/19.

A new, non-refundable tax offset, in addition to the Low Income Tax Offset (LITO), will provide tax relief of up to A$530 to low and middle-income earners from 2018/19. The offset will be received as a lump sum on assessment after individuals lodge their tax returns.

The benefits provided by the low income tax offset (LITO) will be locked in by increasing the top threshold of the 19 per cent bracket from A$37,000 to A$41,000 and increasing the LITO from A$445 to A$645.

Wage earners will also benefit from deferral of plans to increase the Medicare levy, currently 2 per cent of taxable income, by 0.5 per cent, as proposed in the 2017 budget but not legislated. The move was first raised in 2012.

Small business

The Treasurer announced an extension of the A$20,000 instant asset write-off for another year, allowing businesses with turnover of up to A$10 million a year to claim an immediate deduction for a purchase of below A$20,000.

The Federal Budget Overview contains measures aimed at keeping an ageing population at work

A raft of measures directed at older Australians will provide wage subsidies of up to $10,000 for employers who take them on.

Older Australians

The Federal Pension Loan Scheme makes non-taxable loans, paid fortnightly up to the amount of the age pension. It will be extended to full rate pensioners and self-funded retirees, so they can boost their retirement income by up to $17,800 for a couple, without impacting on their eligibility for the pension or other benefits.

A significant number of Australians are asset rich but cash poor and CPA Australia says any measure to assist in unlocking equity in the family home is welcome.

“However, even with the increase in the maximum, the Pension Loan Scheme remains limited in its scope and attractiveness,” said Drum.

“Recognizing and unlocking the equity in the family home is key piece of the retirement income puzzle. More needs to be done in this area.”

The Pensioner Work Bonus will be extended to encourage older people to stay in the workforce, so pensioners can earn an extra A$1300 annually within reducing their age pension payment. Self-employed individuals will be able to earn up to A$7800 a year.

In-home funding will be increased, with 20,000 extra care packages to help people stay in their homes rather than move into aged care.

Infrastructure spending increases in the Federal Budget:

Construction and engineering

The infrastructure spending boom continues with engineering and construction firms to benefit from major projects around the country.

A new A$1 billion Urban Congestion Fund will address “pinch points” to improve traffic flows in cities and a A$3.5 billion Roads of Strategic Importance initiative will upgrade key freight routes, adding to other previously-announced airport links and motorway upgrades.

Health

The medical sector will benefit from a new medical industry plan with support for research and drug trials according to the Federal Budget.

There will be increased funding for mental health services and for doctors and nurses in regional and remote Australia.

Superannuation fund members

Changes include increasing the possible number of self-managed super fund (SMSF) members from four to six, caps on passive fees on small balance super funds, banning super fund exit fees, and changing the work test for those 65-74 years of age who make voluntary contributions to super.

The government will stop super funds from forcing people aged under 25 with low balances to pay for life insurance policies they did not ask for or need.

The government also announced a three-year audit cycle for SMSFs.

Low Support Sectors from the budget

The black economy

In the context of the government’s response to the black economy taskforce review, there will be new compliance obligations for some businesses by further extending the TPRS (Taxable Payments Reporting System) to security and investigation services, road freight transport and computer design and related services.

There will be a A$10,000 limit on cash payments across the economy, to reduce money laundering and tax evasion.

Employers and contractors who do not meet withholding obligations will be denied tax deductions.

Phoenixing activities

Tougher rules for illegal phoenixing activities are proposed, including increased liabilities for directors.

Businesses using the research and development tax concession

There are potential losers from a crackdown on businesses using the concession, as the government forecasts savings of A$2 billion over four years by tightening access to the incentive.

Large businesses

At the top end of town there are changes regarding taxation of financial arrangements (TOFA), and extended definition of significant global entity (SGE) as well as changes to tax consolidation rules.

Changes to the thin capitalisation rules will ensure tax values are in accord with accounting financial reports also.

There are also changes proposed to remove access to CGT discount by managed investment trusts (MITs).

The Treasurer will release a discussion paper in a few weeks on how digital businesses should be taxed.

Changes are also proposed for stapled structures to prevent the conversion of trading income into more favorably treated passive income.

Federal Budget Overview

That’s a wrap on WNRs Federal Budget Overview for 2018/19. As always if the above raises more questions than it answers, please feel free to reach out to us for Advice and assistance. Book a consult today.

To visit the full report handed down by the Australian Tax Office, click this link https://www.budget.gov.au/2018-19/content/overview.html to download a copy of the ATOs report click this link https://www.budget.gov.au/2018-19/content/sections/overview/downloads/Budget_2018-19_Budget_Overview.pdf

by Eugene Dou Eugene Dou No Comments

The Role of Executor

Accountants are often act as executor of their clients. In addition to the high degree of diligence, skill and time investment, executors must be kind, respectful, empathetic, good managers and leaders. Here are some common responsibilities which need to be taken good care as an executor of will.

Immediately on death

Key responsibilities include familiarisation with the terms of the will and organising a funeral for the deceased. If another party becomes involved, there are core risks, as an executor is personally liable for everything that party does in the executor’s name.

An executor must promptly secure the deceased’s assets and ensure all the deceased’s contractual and legal obligations are complied with. This could be as straight-forward as notifying the house and contents insurer that the policyholder has died, securing all locks and redirecting mail.

On the other hand, it could involve overseeing the sale of a property, relocating pets, keeping a business open, cancelling flights, adjourning imminent court hearings, along with a plethora of other matters.

The funeral itself

The difficulties involved can be compounded by a lack of transparency in the general funeral sector.

Recent research into the death-care and funeral industry in Australia by University of Sydney Business School and supported by CPA Australia, titled “It’s Your Funeral”, reveals that the funeral industry is currently worth around $1 billion.

However, like a number of previous studies and inquiries into the sector, it concludes there is a real need for increased scrutiny and information about the goods and services it provides.

“It is a topic of social and regulatory significance,” the study states. “Transparency in pricing is required.”

Indeed, it found that in 2016 the average price for a basic funeral in NSW was $5758, which represents an increase of nearly $1000 – or approximately 21 per cent – since 2009.

Further, it notes that the legislative environment of the funeral industry in Australia is fragmented and primarily limited to regulations that govern transport and disposal and financial products. Therefore, most aspects of death-care exist in an unregulated environment and provide an opportunity for both predatory pricing and marketing by operators.

After the funeral

Before a formal death certificate is issued, the executor must ascertain the deceased’s assets and liabilities. Given these may include multiple bank accounts, interest, annuity, real estate, motor vehicles, personal chattels, shareholdings, insurances, superannuation and so in different jurisdictions, it can be a tedious task.

Only Australian real estate and private shares can be identified from registers. In identifying assets, regard must also be made to equitable and trust principles, not just legal ownership.

Any debts owing to the deceased are estate assets and the executor is obligated to recover them. Conversely, in instances where the deceased was a joint borrower, the estate remains liable.

After that, an executor has to decide whether the estate is solvent or insolvent, which in itself may not be straight-forward as certain assets such as jointly-held property, superannuation and life insurance may not form part of the estate. Superannuation and life insurance, even if they are part of the estate, may not be available to settle debts.

If an estate is insolvent, the executor may choose to administer it in accordance with the Bankruptcy Act 1966 (Cth).

The executor should fully understand the will and identify the needs and entitlements of beneficiaries, especially if they are minors, mentally incapable, bankrupt, non-resident, or financial dependents.

On receipt of the death certificate

Once a death certificate is issued, the executor should promptly file the probate application which, essentially, must satisfy the court that the will-maker has died, the will is the last valid will and the executor is capable of discharging their duties. However, probate is not always required, depending on the nature of assets and debts.

The executor needs to disclose to the court all documents which may be testamentary and seek the court’s ruling on what forms the will. Testamentary documents can include emails, text messages, video recordings, computer files, and the like.

It is not unusual for an application to be contested or for the court to raise requisitions. These can relate to a deceased’s testamentary capacity, the will-making process, and will’s validity. Such matters may be resolved by affidavit, mediation or court hearing.

Grant of probate

A grant of probate entrenches the executor’s authority and protects those transacting with the executor. From this point, the executor must swiftly and smartly collect the assets, pay the debts and prepare the estate for distribution in accordance with the will.

While this might be as simple as closing bank accounts, redeeming a nursing home bond or placing public shares in the name of the executor, it could just as well entail preparing a property or business for sale, negotiating with third parties, attending auctions, claiming insurance benefits, taking appointment as trustee or director of a self-managed super fund or trust, and so on.

Notably, all online subscriptions and activity needs to be cancelled, including eBay, PayPal, Facebook and other accounts.

Further, authorities such as Medicare, the Australian Taxation Office and all licensing bodies need to be informed. The executor also has responsibility to ensure the deceased’s spouses and minor or dependent children are provided for.

Professional Development: Estate planning and SMSFs: This course provides an analysis of key estate planning issues requiring consideration by SMSF trustees and members.

Terms of the will

If there is any ambiguity in a will, the executor may need to bring a construction application about its meaning. Common cases involve identifying the correct recipient of a gift – for example, does “children” include step-children? – and interpreting otherwise unclear clauses.

Estate disputes

Although jurisdictional timeframes differ, creditors and dissatisfied beneficiaries have set periods to state their case after death or probate.

The executor must act in the best interests of beneficiaries, so on one hand needs to defend the estate and uphold the terms of the will, while on the other giving claimants opportunity to present and settle their case.

Although only a small percentage of wills are contested, the cases with an independent executor are the most likely candidates because independent or professional executors are appointed where the will-maker cannot appoint a close associate.

If the dispute is expected to be protracted, the executor must invest the estate in order to comply with the duty to maximise it.

The executor must take professional advice in all aspects of estate management, where an answer is not clear, the executor may seek judicial advice which will protect him on that question.

Distributing the estate

After the claims period and having collected or liquidated assets and paid any debts (including tax returns), the executor can distribute the estate in accordance with the will or as varied by the court or beneficiaries. Throughout administration, the executor has an ongoing duty to communicate and cooperate with beneficiaries, while remaining independent.

All assets are distributed at net – rather than market – value. In compliance with the duty to maximise the estate, distributions must be optimally tax-effective with a view to asset and beneficiary tax statuses, bearing in mind also that assets such as rare collections, unusual real estate and some niche businesses are difficult to dispose of.

Having completed all of the above, the executor may seek a release and an indemnity from beneficiaries to protect themselves from future claims. Beneficiaries are not obliged to provide it.

Generally speaking, the rule is that an executor has a right of indemnity from estate assets for expenses incurred on behalf of the estate but that right is lost if the executor acts improperly or in bad faith.

Executor’s Liability

One imagines that having been completed an estate administration involving this level of work and care, the executor would be discharged. Alas, an executor remains liable till the end of time.

Shortcomings, shortfalls, missed payments, incorrect distributions or innocent mistakes may become a personal liability of the executor.

Recently, an executor misunderstood the terms of a will and distributed a deceased beneficiary’s share to an unintended person. The executor sued that person for return of the distribution, and following a successful mediation the person repaid 48 per cent. The executor had to pay the balance to the correct beneficiary from his own pocket.

It is not unusual for executors to spend 20-to-30 hours a week over the first three-to-four months after a death administering a standard estate, then another 10-to-15 hours a week over the following three-to-six months.

Clearly, if executorship is not their main vocation, it can have a serious impact on one’s professional livelihood.

by Eugene Dou Eugene Dou No Comments

ATO TARGETING WORK RELATED EXPENSES

The Australian Taxation Office (ATO) is targeting work-related expense claims and has already contacted one million taxpayers to address overclaims made under work related expenses.

As we have noticed, earlier this year the Australian Taxation Office (ATO) declared it would be increasing its focus on work-related expenses (WRE). “Last year, 6.7 million taxpayers claimed a record A$7.9 billion for ‘other’ work-related expenses,”

It is revealed that this year the ATO has already contacted one million taxpayers to address non-compliance surrounding WRE, with adjustments reaching A$100 million.

Benchmarking Process Used in WRE Reviews

Claims in each area of WRE – work-related travel, vehicle usage, uniforms, training, and so on – can be measured against the average claim for the same occupation, with red flags potentially raised when claims exceed that average, leading to a total WRE risk score. “Any individual that has claims above the average is at risk of looking suspect in the eyes of the tax office,”

Keeping work-related claims clean

While motor vehicle costs claimed under cents per kilometer basis does not require substantiation, ATO may request a copy of detailed itinerary about your work related travels or sound reasoning about the purpose of the travel. It is also important to make sure claims such as travel, mobile phones and car-related expenses are correctly apportioned and substantiated.

It is also essential to ensure yous are aware of the ATO’s three “golden rules”: 1. to claim an expense they must have paid for something and not been reimbursed; 2. it must be directly related to earning income and not a private expense; and 3. they must have a record to prove it.

If claims seem high, the ATO may take the opportunity to assess and possibly alter a tax return if the claim breaks one of these golden rules. If the case goes to review, penalties of 25 per cent (failure to take reasonable care), 50 per cent (recklessness), and 75 per cent (intentional disregard) can be taken from the shortfall amount.

 

 

The following are most common work-related expenses explained:

D1          Work-related car expenses

Deduction for work-related car expenses are claimed under Item D1 in respect of a car which an employee owns, leases or hires under a hire-purchase agreement. Deductions can only generally be claimed for the use of your car in performing work-related duties; attending work-related conferences away from your normal workplace; travelling between two separate places of employment where one of those places is not your home; travel from your normal workplace to an alternative workplace; and travel from your home to an alternate workplace and then to your normal workplace. Accordingly, a deduction is not available for travel between home and work except in limited circumstances such as the demonstrated need to carry bulky goods. You cannot claim a deduction for car expenses if reimbursed by your employer.

Note: A motor vehicle will only be a car if it is not a motor cycle or similar vehicle and has been designed to carry a load of less than one tonne and fewer than nine passengers.

you may choose which of the following two methods is applied to calculate the deduction:

  1. Cents per kilometre method

The claim is based on a set rate for each business kilometre travelled, being $0.66 cents per kilometre regardless of the vehicle’s engine capacity. Business kilometres includes kilometres travelled in the car in the course of earning assessable income including any work-related activities. The taxpayer can claim costs by applying that set rate up to a maximum of 5,000 business kilometres.

Taxpayers must be able to show how they reasonably estimated the amount of business kilometres travelled. For example, the you may have documented their eligible work-related trips in a diary or some other written record. However, it is not necessary to comply with the substantiation provisions.

Note: The ATO has previously expressed the view that it is concerned that car expense claims based on the cents per kilometre method may be overstated in certain cases as it is necessary to establish that the claim is based on work-related or business kilometres travelled which must be based on reasonable estimates.

  1. Log book method

The claim for each car expense deduction (e.g. fuel, repairs, registration insurance, and the decline in value of the car) is multiplied by the business use percentage of a car as determined using a log book for a continuous 12-week period. This business percentage is the amount of business kilometres travelled divided by the total number of kilometres travelled during the 12-week period. The business use percentage established in the log book can then generally be used in the subsequent four years to calculate car expense deductions unless there has been a change in the pattern of use of the car. In addition, written evidence of car expense deductions must be retained including receipts, invoices and credit card statements as required under the substantiation provisions.

  1. Work- Related Travel Expenses
  • public transport, air travel and taxi fares
  • bridge and road tolls, parking fees and short-term car hire
  • expenses for motorcycles and vehicles with a carrying capacity of one tonne or which holds nine or more passengers such as utility truck some panel vans
  • expenses incurred on petrol repair and maintenance costs on a car that is not owned or leased by the you but some other person.

If your employer requires the you to travel overnight, some associated costs like accommodation, meals and incidental expenses may be deductible. To make a claim the you must be able to show that:

  • the travel was undertaken for work purposes
  • you was away from home for a relatively short period (e.g. overnight)
  • you must have a permanent home at a location away from the work location to which they are travelling
  • the expense has been incurred by the you and not reimbursed
  • you kept a diary (for certain travel which is more than six nights away from home).
  1. Work-Related Uniform Expenses

The purchase and laundering of the following clothing may be deductible:

  • protective clothing and safety footwear: clothing or footwear that is specifically designed to protect against risk of death, disease, injury or damage or
  • compulsory uniform: non-conventional clothing that identifies the employee as being employed by a particular employer which is a policy strictly enforced by the employer or
  • non-compulsory uniform: non-mandated uniform or clothing which clearly identifies an individual’s employer which is registered with AusIndustry or
  • occupation specific clothing: clothes that identify a person as a member of a specific profession, trade, vocation, occupation or calling and which are not for everyday use.

Refer to Taxation Ruling TR 98/5 for further details.

You must have receipts, invoices or other written evidence (such as diary records) in relation to laundry and dry cleaning expenses if the amount of any claim is greater than $150 or if the total claimed for work-related expenses exceed $300. Where You did the laundry themselves they are allowed to use a reasonable basis to calculate the deduction such as $1 per load for work-related clothing or $0.50 per load of other laundry items were included. Further information is available on the ATO website.

Note: You cannot claim the cost of purchasing or laundering conventional clothing (like black pants or white shirts), even if the employer requires them to wear it.

  1. Work-Related Self-Education Expenses

Self-education expenses are generally allowable where the course of study is to maintain the taxpayer’s skills in their current employment, or increase the taxpayer’s skills in that person’s current occupation, which will result (or will be likely to result) in an increase in income from current employment. Examples of such costs include course fees, tuition fees, student union fees, textbooks, stationery, computer consumables (e.g. printer cartridges), trade and professional journals, certain travel expenses, internet and phone usage and depreciation. Where applicable such costs must be apportioned between eligible expenses incurred for study purposes and those for private purposes. Receipts, invoices and diary records must be retained to evidence claims.

For further details of eligibility requirements and types of deductions available refer to Taxation Ruling TR 98/9.

Note: you are unable to claim fees for courses that only relate to your current employment in a general way or which are undertaken to help gain new employment or an initial qualification.

Note: The ATO pays particular attention to these items so ensure that all claims can be substantiated appropriately. Note also that $250 of eligible self-education expenditure is not allowable.

Note: Deductions for self-education costs cannot be offset against Government assistance programs including Austudy, ABSTUDY and youth allowance.

Note: Deductions for the cost of formal education courses provided by professional associations and seminars, education workshops or conferences connected to work should be disclosed at Item D5 concerning ‘Other work-related expenses’.

 

 

Top