What is counted as income in my tax return?
Ordinary income such as income derived from your job, some centrelink payments, interest from banks, and dividends from shares. Capital Gains is also income. If you have held the asset for more than 12 months, you may receive a 50% discount.
Is an allowance that wasn’t taxed counted as income?
Depending on what kind of allowance it is. In some cases allowances can unfortunately cause a bad tax position. Even though the income was not taxed, does not mean the allowance is non-taxable.
Deductions
What is the difference between a deduction and an offset?
A deduction is an expense you incurred while doing your job. This amount is then taken off your gross (pre-taxed) income. This result is called your Taxable Income, and your tax liability is then calculated off that amount. An offset is a direct reduction in the total tax you are to pay.
My employer requires me to wear specific clothing. Can I claim these as work deductions?
There are 2 main ways you can claim uniform expenses. One way is for protection, for example Steel Capped boots. The other is a uniform with a logo on it.
What car expenses are claimable?
Unless you carry heavy equipment to work, you cannot claim any car expenses for simply driving to work and back everyday. What is claimable is if you drive to different locations for work, or if you go to a second job or study location without going home first.
I have to buy materials and tools for work, are they claimable?
Any items that you pay for to do your job are deductible, from pens to laptops to bulldozers.
My job requires me to stay updated with educational material, is that claimable?
Yes, any self education costs involved in keeping or getting ahead in your current job are claimable.
What donations are deductible?
Donations of $2 or more to charity deductible gift recipients are tax deductible when get a receipt.
Can I claim Sun Protection expenses?
Yes. If you are in the sun for work, then you can claim hats, sunscreen, sun glasses etc.
I was away on work, and I stayed overnight at different places, can I claim anything?
If you were away for work, then you can claim incidental costs, food, and accommodation costs. As always keep receipts. If you combined the time away with a holiday, then a percentage of work related expenses can be claimed.
I use a room in my house to work in, can I claim an expense here?
Yes, a percentage of work related use will be used to determine how much is claimable. Common expenses are computer, phone and internet related expenses.
Is the preparation of my tax return tax deductible?
Costs incurred to correctly submit your tax return by a tax agent are deductible.
Other
How long should I keep my receipts for?
You need to keep receipts for up to 5 years after lodgement.
What is negative gearing?
It is the ability to claim the loss you have made on a rental property, that you can claim against your regular income.