Tax Guide 2019 - nteu.org.au/tax - National Tertiary Education Union
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Tax 2019
Guide
nteu.org.au/tax
Contents
ATO Focus 2019.......................................................................1
Common mistakes
NTEU National Office
PO Box 1323, South Melbourne VIC 3205 Changes for 2019 ...................................................................1
Individuals
Ph: (03) 9254 1910
Business
Fax: (03) 9254 1915 Superannuation
national@nteu.org.au
Changes for 2020 and Beyond....................................... 2
www.nteu.org.au
Individuals
Business
Rental Properties
Superannuation
The Tax System.....................................................................4
Who needs to lodge a return?
Record Keeping
NSW & National Self-Assessment
Ph: (02) 8006 5020 Self-Lodgement
Fax: (02) 4210 8682 (central fax system) Using a Tax Agent
Victoria Income.......................................................................................5
Ph: (03) 9014 9590 Salary & Wage Income
WA Government Income
Ph: (08) 6102 0560 Investment Income
Other Income
info@teachertax.com.au Deductions..............................................................................6
www.teachertax.com.au Bank Fees
Car Expenses
Clothing
Donations & Gifts (incl School Building Funds)
Excursions, School Trips and Camps
Home Office
NTEU Tax Guide 2019. 19th edition. Published by NTEU. Written by Teacher Tax. Insurance
All rights reserved ©2019. ISBN 978-0-9946377-1-0. Rental Property Expenses
Online version at www.nteu.org.au/tax Self-Education Expenses
Authorised by Matthew McGowan, General Secretary, National Tertiary Tax Returns
Education Union, 120 Clarendon St, South Melbourne VIC 3205.
Teaching aids
Cover image: Andriy Popov/123rf.com
Travel Expenses
This guide has been prepared for information only. Australian Tax Legislation
is a complex body of law and members should seek qualified tax advice for Union and Professional Association Fees
their personal situation. While every effort has been made to ensure that the
information in this guide is accurate, Teacher Tax carries no responsibility for its Rebates and Offsets............................................................8
application. The advice given is to be considered general. Information in italics Invalid Carer Tax Offset
has been directly sourced from Australian Government websites.
Low Income Tax Offset
Private Health Insurance Rebate
Senior Australians and Pensioners Tax Offset
Zone Tax Offset
Where to find your NTEU Tax Statement...............8
Do your tax NOW!...............................................................9
Questionnaire........................................................................9
ATO Focus 2019 Changes for 2019
Each year the ATO has access to more and more information about Individuals
taxpayers. Every tax return is compared to other taxpayers in similar
occupations earning similar income. If a red flag is raised, the ATO can Income Tax Rates (Residents) 2018/19
investigate. There are four things that the ATO are focusing on this
Taxable income Tax Rate
year:
$0 – $18,200 0
1. The cash economy $18,201 – $37,000 19c for each $1 over $18,200
They want all taxpayers to be declaring all of their cash income. $37,001 – $90,000 $3,572
2. High wealth individuals plus 32.5c for each $1 over $37,000
The ATO knows that many smaller tax agents cannot cope with the $90,001 – $180,000 $20,797
complexity of high wealth taxpayers, therefore small tax agents with plus 37c for each $1 over $87,000
such clients can expect an audit. $180,001+ $54,097
plus 45c for each $1 over $180,000
3. Multi-nationals profit shifting
Private Health Insurance Rebate
4. Work-related expenses
A taxpayer needs to make sure they spent the money themselves and Premiums paid to 31 March 2019
were not reimbursed, the expense was directly related to earning Base Tier Tier 1 Tier 2 Tier 3
their income and they have a receipt or record to substantiate it. If the Under 65yr 25.415% 16.943% 8.471% 0%
expense is for work and private use, they can only claim a deduction 65-69yr 29.651% 21.180% 12.707% 0%
for the work-related portion.
70yr or over 33.887% 25.415% 16.943% 0%
Common mistakes Premiums paid after 1 April 2019
Under 65yr 25.059% 16.706% 8.352% 0%
Car Expenses
65-69yr 29.236% 20.883% 12.529% 0%
While you can claim up to 5,000 km without a logbook you still need
to be able to substantiate your calculation. You cannot claim for travel 70yr or over 33.413% 25.059% 16.706% 0%
between work and home, or if you have salary sacrificed car. Medicare levy surcharge
Clothing Base Tier Tier 1 Tier 2 Tier 3
To be claimable clothing must be either; Rates 0.0% 1.0% 1.25% 1.5%
• Occupation specific (such as for a nurse)
Income statements
• Protective (such as steel cap boots or a high vis vest)
Income statements will replace payment summaries. If an employer
• A uniform (with logos or made specifically for the business). reports through Single Touch Payroll they are not required to provide
If you happen to wear everyday clothes to work such as black trousers a payment summary to their employees. Employees can access their
and a white shirt you cannot claim the clothes or the cost of cleaning income statements through ATO online services via myGov. Employees
them. will receive a notification from the ATO in their myGov inbox when
their income statement is ‘Tax ready’, so they can complete their tax
Travel expenses
return. Employees will be able to contact us for a copy of their income
Airfares and accommodation need to be apportioned correctly. If you statement if they do not have access to myGov.
go to a conference for 4 days and then go sight-seeing for 4 days,
then you can only claim 50% of the expenses. If you go with a family Low and middle income tax offset (LMITO)
member, the expenses again would need to be reduced. From 2019, the LMITO will increase to $1080 pa. This will be available
from 2019 to 2022.
Self-education
A course must be connected to the income you are currently earning, LMITO – current LMITO – proposed
either to maintain or improve your specific skills or knowledge. Course 0 – $37,000 Up to $200 Up to $255
fees that have been put through HECSS/HELP cannot be claimed. $37,001 – $48 000 $200 (+ 3% of > $37k) $255
$48,001 – $90,000 $530 $1080
$90,001 – $125,333 $530 $1080
(1.5% of >$90k) (3% of > $90k)
$125,334 + Nil Nil
NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019 • p. 1This offset will automatically be claimed in taxpayer’s returns. If the Changes for 2020 and Beyond
changes proposed in the 2019–20 Budget become law after 1 July
2019 the ATO will automatically amend assessments. The offset can Individuals
only reduce the amount of tax they pay to zero and it does not reduce
their Medicare levy. Private health insurance statements
Medicare levy low income thresholds From 1 July 2019, health insurers are no longer required to send
The income thresholds have increased to $22,398 for singles and private health insurance statements. Previously they were required to
to $37,794 for families. For taxpayers eligible for the seniors and send statements by 15 July each year, it is now optional to send this
pensioners tax offset, the threshold has increased to $35,418. The information.
family threshold for seniors and pensioners has increased to $49,304. Private health insurance information will be available in the pre-fill
The family income threshold will be increased by $3,471 for each report, usually by mid-August. If it is not populated by then, taxpayers
dependent child or student. may need to request a statement from their health insurer.
It is important to correctly report private health insurance information
Business as it is used to calculate private health insurance rebates and the
Expanding accelerated depreciation for small Medicare levy surcharge, if applicable.
businesses Proposed Personal Income Tax Rates
The instant asset write-off threshold now includes businesses with a From 1 July 2022, the 19% bracket will be increased from $37,000
turnover from $10 million to less than $50 million. These businesses to $41,000 and the 32.5% bracket will be increased from $90,000 to
can claim a deduction for the business portion of each asset that costs $120,000.
less than $30,000 depending of the date of purchase (see table below)
From 1 July 2024, the 32.5% bracket will apply to taxable incomes
Date of Asset purchase Maximum Cost of $41,000 to $200,000, effectively removing the 37% tax bracket
Between 12/5/15 and 29/1/19 $20,000 entirely. Incomes over $200,000 will be in the 45% top bracket.
Between 29/1/19 and 2/4/19 $25,000 Rate Current Tax Rates 2019-22 Proposed Tax Rates 2023-24
Between 2/4/19 and 30/6/19 $30,000 0% 0 – $18,200 0 – $18,200
Superannuation 19% $18,201 – $37,000 $18,201 – $45,000
32.5% $37,001 – $90,000 $45,001 -$120,000
Downsizer contribution into superannuation 37% $90,001 – $180,000 $120,001 – $180,000
From 1 July 2018, members aged 65 years old or older, and meet 45% $180,001+ $180,001+
all the eligibility requirements may choose to make a downsizer
contribution of up to $300,000 into superannuation from the proceeds Low Income Tax Offset (LITO)
of selling their primary residence. From 1 July 2022, this offset will be increased from $445 to $645
If a member makes a downsizer contribution it is reported in the year Low and Middle Income Tax Offset (LAMITO)
it is made. The member will need to provide a Downsizer contribution
The offset of up to $530 will apply to the 2019-2022 tax returns. This
into super form, either before or when they make their contribution.
offset will be in addition to the Low Income Tax Offset.
Downsizer contributions should be made within 90 days of the change
of ownership of the dwelling (usually the date of settlement). An Current LITO Proposed LAMITO
extension of time may be granted where there is a delay, but will not $0 – $37,000 Up to $445 $0 – $37,000 Up to $200
be granted to allow the member to meet the age requirement. $37,001 – $445 less 1.5% x 37,001 $200 plus 3% x
Downsizer contributions can be made regardless of contributions $66,666 excess over $37k -$48,000 excess over $37k
caps and other restrictions (age and work test) that may apply when $66,667 + 0 $48,001 – $530
making voluntary contributions. $90,000
$90,001 – $530 less 1.5% x
$125,333 excess over $90k
$125,334 + 0
p.2 • NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019HELP repayments Strengthening the Australian Business Number
HELP income thresholds will change for the 2019-20 financial year. It system
would be good to check that your employer is deducting the correct From 1 July 2021, ABN holders will be required to lodge their tax
amount in extra tax to cover these new repayment rates in July 2019. returns on time.
2018-19 HELP repayment rates 2019-20 HELP repayment rates From 1 July 2022, ABN holders will be required to confirm the accuracy
of their details annually. Currently ABN holders are able to retain their
Adjusted Taxable Repayment Adjusted Taxable Repayment
ABN status regardless of if they meet lodgment requirements.
Income rate Income rate
Below $51,957 Nil Below $45,881 Nil Rental Properties
$51,957 – $57,729 2.0% $45,881 – $52,973 1.0%
Vacant land deductions
$57,730 – $64,306 4.0% $52,974 – $56,151 2.0%
From 1 July 2019, expenses associated with holding vacant residential
$64,307 – $70,881 4.5% $56,152 – $59,521 2.5% or commercial land, including interest expenses will be no longer
$70,882 – $74,607 5.0% $59,522 – $ 3.0% claimable. They can neither be carried forward, but instead added
63,092 to the cost base of the land. Deductions for expenses associated
$74,608 – $80,197 5.5% $63,093 – $66,877 3.5% with holding the land will be available once a property has been
$80,198 – $86,855 6.0% $66,878 – $70,890 4.0% constructed on the land, it has received approval and is available for
rent.
$86,856 – $91,425 6.5% $70,891 – $75,144 4.5%
$91,426 – 7.0% $75,145 – $79,652 5.0% Superannuation
$100,613
Capping passive fees and banning exit fees
$100,614 – 7.5% $79,653 – $84,432 5.5%
$107,213 From 1 July 2019, a 3% annual cap on passive fees charged by
superannuation funds on accounts with balances below $6,000 will be
$107,214 and 8.0% $84,433 – $89,498 6.0%
introduced, as well as a ban on exit fees. The ATO will also require the
above
transfer of all inactive superannuation accounts with balances below
$89,499 – $94,868 6.5% $6,000 to the ATO. The ATO will expand its data matching processes to
$94,869 – 7.0% proactively reunite these inactive superannuation accounts with the
$100,560 member’s active account.
$100,561 – 7.5%
Exemption from the work test for voluntary
$106,593 contributions
$106,594 – 8.0% From 1 July 2019, an exemption from the work test for voluntary
$112,989 contributions to superannuation, for people aged 65-74 with
$112,990 – 8.5% superannuation balances below $300,000, in the first year that they
$119,769 do not meet the work test requirements will be introduced. The work
$119,770 – 9.0% test exemption will give recent retirees additional flexibility to get
$126,955 their financial affairs in order in the transition to retirement.
$126,956 – 9.5% Three-yearly audit cycle for some SMSFs
$134,572
From 1 July 2019, the annual audit requirements will change from
$134,573 and 10% an annual to a three-yearly requirement for SMSFs with a history of
above good record-keeping and compliance. This measure will reduce red
Business tape for SMSF trustees that have a history of three consecutive years of
clear audit reports and that have lodged the fund’s annual returns in a
Cash payment limit timely manner.
From 1 July 2019, a limit of $10,000 for cash payments made to Increasing the age limit for spouse contributions
businesses for goods and services will be introduced. This measure
From 1 July 2019 the age limit to receive spouse contributions will
will require transactions over a threshold to be made through an
increase from 70 to 74.
electronic payment system or by cheque.
Removing the work test for those aged 65 & 66 yr
Expanding Single Touch Payroll
From 1 July 2020, voluntary contributions can be made by those aged
From 1 July 2020, the Government will simplify and automate the
65 and 66 years without meeting the work test.
reporting of welfare income recipients through STP.
NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019 • p. 3The Tax System • Offer you professional assistance to help you understand and meet
your tax obligations.
Who needs to lodge a return? • Accept you can be represented by a person of your choice and get
advice about your tax affairs.
If you have earned income over $18,200 in this financial year, you
must lodge a return. If you earned less than this amount but had tax • Respect your privacy.
withheld from your salary you will also need to lodge a tax return. • Keep your information confidential in accordance with the law.
Even if you’re not required to lodge a return it is a good idea to notify • Give you access to information we hold about you in accordance
the ATO that a return is not necessary. with the law.
Record Keeping • Give you advice and information you can rely on.
• Explain to you the decisions we make about your tax affairs.
As the tax system is self-assessment, it is essential that taxpayers be
able to substantiate their income and expenses. In general, records • Respect your right to a review.
should be kept for a period of five years from the date you receive your • Respect your right to make a complaint.
notice of assessment. • Administering the tax system in a way that minimises your costs of
Records should be kept in such categories as: complying.
• Payments you have received. • Be accountable for what we do.
• Expenses related to payments. Self-Lodgement
• Acquisition or disposal of an asset – such as shares or a rental Tax returns are submitted either by individuals or their tax agent to
property. the Australian Tax Office on an annual basis. If you are doing the return
• Tax deductible gifts or donations. yourself, it must be lodged by 31 October. The ATO has the power to
• Medical expenses. fine the taxpayer up to $180 for every 28 days the return is late to a
If you’re not sure whether or not to keep a record, the best advice is to maximum of $900. Interest on any tax payable may also be charged.
err on the side of caution. It is better to have too many records than Our advice is to get it in on time and save the stress and hassle.
not enough. The return is assessed by the ATO and you are issued with a Notice of
Assessment.
Self-Assessment
The Notice of Assessment will summarise your taxable income for the
Australia has a self-assessment taxation system. This means that your year. It may include a tax refund or an amount payable.
return is accepted initially by the Australian Taxation Office (ATO) as
truthful. Using a Tax Agent
However, the ATO will check the validity of your claims by data If you lodge through a Tax Agent, you may be able to avail yourself
matching and auditing. They use this data to: of the general extension of time granted to Tax Agents (usually 31
• Provide pre-filling information to taxpayers and their agents to help March of the following year). To avoid penalty however, you must be
them correctly complete their income tax return first time. registered as a client with a tax agent by 31 October.
• Identify discrepancies between information reported by taxpayers Other advantages of using a Tax Agent include:
in their tax returns against details reported by third parties. • A quicker turnaround for refunds.
• Identify particular non-compliant behaviour within selected target • A thorough and professional check to ensure all information is
groups, or to conduct risk assessments. correct.
• Assist in administration of the relevant legislation with other • Advocacy in the case of audit / dispute.
government departments through data exchange. • Tax planning to reduce tax.
• Exchange with treaty partners.
The responsibilities of taxpayers include:
• Be truthful and cooperative in your dealings with us.
• Take reasonable care in preparing your tax returns and in keeping
your records.
• Lodge your documents and pay any amounts payable by the due
date.
The responsibilities of the ATO:
• Treat you fairly and reasonably.
• Treat you as being honest in your tax affairs unless you act
otherwise.
p.4 • NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019Income Investment Income
• Rental income when you rent out your property. The rental income
In general, income tax is calculated by subtracting allowable must go on the tax return of the taxpayer whose name appears on the
deductions from assessable income. Assessable income can be title deed of the property. This is most often a 50% spilt between two
obtained in a variety of ways: taxpayers.
Salary & Wage Income • Dividend income including dividends paid directly to you,
Salary and wages are the main forms of payments made to an dividends applied under a dividend reinvestment plan, dividends
employee. Generally they are considered to be payments made to an that were dealt with on your behalf and bonus shares that qualify as
individual as remuneration for services, and provided under a contract dividends.
of service (employment contract). Other payments include: • Interest income can include interest the ATO credited tax account
• Allowances can be for car, travel or transport, tools, clothing or with. It also includes money received from financial institution
laundry, dirt, site, risk, meal or entertainment or for qualifications accounts and term deposits. NB If you operated an account for a child
held e.g. a first aid certificate. and the funds in that account belonged to you, or you spent or used
the funds in the account as if they belonged to you, you must include
• Any payment received under sickness or insurance policy for loss of any interest from the account.
income is usually considered assessable.
• Certain lump sum payments in respect of unused annual leave Other Income
and long service leave are entitled to concessional tax treatment Business income may include earnings from your operation through a
when you terminate your employment. That is why the amounts Sole Trader, Partnership, Trust or Company structure.
are separately recorded on your payment summary and separately The ATO makes a distinction between what is considered a business and
recorded on your tax return. We suggest that you obtain what is a hobby. There are certain tests that must be satisfied in order to
professional advice if you have any lump sum payments labelled A B gain treatment as a business (e.g. the ’business’ must make a consistent
C D or E on your payment summary. profit).
• Eligible Termination Payment (ETP) is a lump sum payment paid by Capital Gains income could include any capital gain or capital loss on
an employer or a superannuation fund. Some of these payments the disposal of certain assets. Reasons leading to a possible event can
receive concession tax treatment up to certain limits called caps. Areas include:
include resignation, age retirement, redundancy, dismissal, death of
an employee. • An asset you own is lost or destroyed (voluntary or involuntary).
• You give an asset away.
Government Income • You enter into an agreement not to work in a particular industry for
Assessable government payments include: a set period of time.
• Age pension • Shares you own are cancelled, surrendered or redeemed.
• Newstart allowance • A liquidator or administrator declares that shares or financial
• Youth Allowance instruments you own are worthless.
• Austudy payment • You grant an option to someone to buy an asset that you own.
• Parenting payment (partnered) • You receive a non-assessable payment from a unit trust or managed
• Partner Allowance fund.
• Sickness Allowance • You dispose of a depreciating asset that you used for private
purposes.
• Special benefit
• You stop being an Australian resident.
• Widow Allowance
This is a complex area of tax law and we recommend you consult a tax
• Farm household allowance professional.
• Interim income support payment
• The following payments if you are 16 or older
• Abstudy living allowance
• Payments under the Veterans’ Children Education Scheme
• Payments under the Military Rehabilitation And Compensation Act
Education and Training Scheme 2004 (MRCA education allowance)
• Other taxable Australian Government education or training payments
• Community Development Employment Project (CDEP) payments
• Disaster recovery allowance
NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019 • p. 5Deductions • Property purchased during the 12 months before making the gift
• Listed shares valued at $5,000 or less
Deductions are allowable expenses or outgoings that have been • Trading stock disposed of outside the ordinary course of business
incurred in earning any assessable income. An expense must be
incurred, that is either paid, or definitely committed to be paid, such • Cultural gifts Program
as holding the invoice. You must have written evidence to prove your • Heritage gifts
claims if your total claims exceed $300. Deductions can include the Examples of payments that are not gifts include:
following items. • Purchases of raffle or art union tickets
Bank Fees • Purchases of chocolates, pens etc.
Fees incurred due to having your salary paid directly into a bank • The cost of attending fundraising dinners, even if the cost exceeds
account are a claimable expense. the value of the dinner
• Membership fees
Car Expenses • Payments to school building funds as an alternative to an increase
Using your car for work purposes can be claimed as a deduction. It in school fees
does not include travel between work and home. You can claim for • Payments where the person has an understanding with the
travel between two separate workplaces, or between a workplace and recipient that the payments will be used to provide a benefit for the
a place of business. donor
Method 1 – Cents per kilometre Contributions to school building funds can also be deductions. The ATO
You can claim up to 5,000 business km per car. The rate of 66c per km states that a school building fund has the following characteristics:
is applicable for all cars. You do not need written evidence as such but • The fund is a public fund.
you need to be able to show how you calculated your claim. • The public fund is established and maintained solely for providing
money for the acquisition, construction or maintenance of a
Method 2 – Logbook
building.
You claim the business percentage of costs associated with running
• The building is used, or is to be used, as a school or college, by
your car. You need to record odometer readings and you need evidence
a government or a public authority, or a non-profit society or
of all costs except fuel.
association.
Clothing n.b. A deduction is not allowable for purchasing gifts for other teachers
You can claim the cost of clothing if it falls into one of the following or students:
categories: “Teachers may outlay their own money to supply items to students for
• A compulsory uniform – a set of clothing that identifies you as an their own individual needs (e.g. books and uniforms); purchase gifts
employee. for students (e.g. Christmas gifts); purchase food and drinks for special
• A single item of distinctive clothing, such as a jumper or tie, if it occasions (e.g. student birthdays) and replace money lost by students
is compulsory for you to wear it at work. Generally having a logo (e.g. money for bus fares and lunch). While employee teachers may
permanently attached and the clothing is not available to the feel a moral, personal or social obligation to outlay these expenses,
general public. there is no connection between the expenditure incurred by the
employee teacher and producing assessable income.”
• A non- compulsory BUT registered uniform.
• The cost of buying, hiring, replacing or maintaining protective Excursions, School Trips and Camps
clothing. You can also claim a deduction for the cost of clothing The trips MUST be related to the curriculum or extra-curricular activities.
that you use at work to protect your ordinary clothes from soiling or Factors determining relevance would include the purpose of the trip,
damage – for example, laboratory coats or art smocks. Also, you are the activities undertaken, and the duties of the teacher. For example, a
allowed to claim for sun protection such as sunscreen, sunglasses teacher accompanies a class of school students on a day excursion to visit
and sunhats. Parliament House as part of the social studies curriculum. The purpose of
n.b. Expenditure on sports clothes such as tracksuits, t-shirts, aerobics the trip as well as the activities have a direct relevance to the curriculum
clothing, swimming costumes and running shoes is considered therefore, all expenses would be deductible.
conventional clothing and is not an allowable deduction. Supervising students alone is not sufficient to make the expenses
Donations & Gifts (incl School Building Funds) deductible. For example, a teacher accompanies a group of students
to visit their sister school. Half of the time is spent at the sister school
Donations must meet certain conditions. They must be made to a engaging in social, classroom and sporting activities. Half of the
Deductible Gift Recipient – a list of such organisations can be found at time is spent in tourist activities. The trip is open to all students and
www.abn.business.gov.au. Gifts can include: is not part of the curriculum of any particular course at the school.
• $2 or more Even though the trip may provide social and cultural benefits to the
p.6 • NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019students, the expenses incurred by the teacher are not deductible. • Pest control
However, if the trip is not curriculum-related but forms an integral • Property agent fees or commissions
part of the extra-curricular activities and the teacher accompanies • Repairs and maintenance
students as a representative of the school (e.g. school sporting events
or school band competitions) the expenses would be allowable. • Stationery
The deductibility of expenses incurred to inspect a possible excursion • Telephone
venue prior to taking the students depends on the purpose and • Water charges
reasons for undertaking such an inspection; e.g. expenses associated • Travel costs to inspect the property.
with prior visit of a venue to ensure that it meets safety requirements If only part of your property is rented out, these expenses must be
are allowable. However, if a teacher visits a venue privately then apportioned.
decides that it would make a good excursion venue, the private visit
expenses are not claimable. Self-Education Expenses
Expenses incurred in completing training provided by a school,
Home Office
college, university or other place of education. You must have
When you carry out work activities your home office, you can claim undertaken the course for use in carrying on a profession, business or
the heating, cooling, lighting and cleaning as well as the decline in trade or in the course of employment. It MUST relate to your work as
value of and repairs to your home office furniture and fittings. The an employee at the time you were studying. The first $250 of these
ATO has set a fixed rate of 45 cents per hour for these office expenses expenses is not claimable. Such expenses may include:
instead of keeping details of actual costs. • Textbooks
Also, the following may be applicable (apportioned for private and • Student union fees
work use):
• Stationery
• Answering machines
• Course fees
• Briefcase
• Travel expenses
• Calculators and electronic organisers
• Decline in value of equipment.
• Computers and computer software
NB In general, the costs associated with personal motivation seminars
• Mobile phones , Telephones are not tax deductible. Whilst they vary from course to course, the
• Facsimile machines ATO’s view is that ‘the material covered is too general to be classed as
• Pagers relating specifically to income-producing activities.’
• Hiring equipment Tax Returns
• Technical or professional publications
The cost of managing your tax affairs is a tax deductible expense in
• Teaching aids the year that it is incurred (e.g. this year, you can claim last year’s
Insurance costs). These expenses must relate to a qualified tax advisor. They can
include the preparation and lodgement, advice, costs of travel to and
Insurance against the loss of income is usually a legitimate expense. from the advisor and obtaining reference works.
It should be noted that this does not include Private Health insurances
and the like. Teaching aids
Rental Property Expenses Items purchased must have a direct and relevant use in carrying out
your duties. Examples include:
You can claim expenses relating to your rental property but only • Pens, pencils, markers/highlighters, stamps, stickers, paints,
for the period your property was rented or available for rent – e.g. stationery, posters, maps, laminating.
advertised for rent. Expenses could include:
• Storybooks, jigsaws, games, toys used by early childhood, primary
• Advertising for tenants school or special education teachers.
• Bank charges • Items used in cooking or sewing classes or science experiments.
• Body corporate fees • Prizes purchased to reward achievement and encourage students.
• Borrowing expenses • Entrance fees for school excursions.
• Council rates • Whistles and stopwatches used by physical education employee
• Decline in value of depreciating assets teachers.
• Gardening and lawn mowing • Calculators/calculator batteries
• Insurance • Maintaining classroom or school pets.
• Land tax
NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019 • p. 7Travel Expenses Rebates and Offsets
If you have to travel away for work, then certain expenses may be
deductible which may include: Tax offsets (or rebates) directly reduce the tax payable. Usually, tax
rebates can only reduce your tax payable to zero, with the exception of
• Air, bus, train, tram and taxi fares franking and private health insurance.
• Bridge and road tolls
• Parking Invalid Carer Tax Offset
• Car hire fees If you maintained a dependent invalid relative you may be entitled to
• Meals a tax offset depending on your adjusted taxable income.
• Accommodation. Low Income Tax Offset
If a travel allowance is received and the amount of the claim You may be eligible for a tax offset if you are a low-income earner. You
for expenses incurred is no more than a reasonable amount, don’t have to claim this offset. The ATO will work it out for you when
substantiation is not required. If the deduction claimed is more than you lodge your tax return. The offset can only reduce the amount of
the reasonable amount (rates outlined by the ATO depending on travel tax you pay, it does not reduce your Medicare levy.
location) the whole claim must be substantiated, not just the excess
over the reasonable amount. Private Health Insurance Rebate
If the dominant purpose in incurring the cost is the attendance at If you have private health insurance, you are entitled to a tax rebate.
the conference or seminar then the existence of any private activity Most people claim this throughout the year in the form of a premium
would be merely incidental and the cost would be fully deductible. reduction.
If the attendance at the conference or seminar is only incidental to a
Senior Australians and Pensioners Tax Offset
private activity (e.g. a holiday) then only the costs directly attributable
to the conference or seminar is allowable deduction. The cost of The pensioner tax offset and the senior Australians tax offset have
accommodation, meals and travel directly relating to the private been combined to form the seniors and pensioners tax offset (SAPTO).
activity is not allowable.
Zone Tax Offset
Union and Professional Association Fees If you live and work in a remote area you may be entitled to the zone
You can claim for the cost of being a member of a Union or offset.
Association. See below for where to find your NTEU Tax Statement.
Where to find your NTEU Tax Statement
If you pay your fees via direct debit, credit card or invoice
Your Tax Statement can be accessed via your online Member Tools page. Login in at www.nteu.org.au/members and select “Print Tax Statements”
in the Payments box. Please note that statements will not be mailed out.
If you pay your fees via payroll deduction
Membership fees will appear on the PAYG summary supplied by your employer. Contact your Payroll Department for any inquiries.
TAFE members and ex-members
Tax statements will be sent to your home address in early July.
p.8 • NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019Do your tax NOW!
Let us help you lodge your tax return. Our tax service was designed BY teachers FOR teachers.
We will access your income details with the ATO and then we just need to add in your work-related expenses. We can correspond by email or phone
if you prefer. Your refund will be deposited into your bank account within *14 days (*ATO processes 94% in 14 days).
Our fee is only $110 (incl GST) for a standard return, which is deducted from your refund. NTEU members receive a 10% discount.
Email : info@teachertax.com.au Phone: (02) 8006 5020 Fax: (02) 4210 8682
We just need the following details to act as your agent and get started:
Full Name
Date of birth
Tax File Number
Address
Phone
Email
Signed Client _______________________________________________________ Date ___________________
Please complete the questionnaire below...
Questionnaire
Do you have a spouse or de facto?
(If yes, please supply name, date of birth & approximate taxable income)
Do you have dependents? (If yes, how many?)
Do you have Private Health Insurance?
Do you have a HELP debt?
Income
How many payment summaries are you expecting?
If you receive an allowance on your payment summary what is it for?
(e.g. travel)
Do you receive any Government pensions or allowances?
Do you have any savings which earns bank interest?
Do you have any shares that receive dividends?
Do you earn any business income?
Do you own a rental property?
Continue questionnaire overpage...
NATIONAL TERTIARY EDUCATION UNION • TAX GUIDE 2019 • p. 9Deductions
D1 Use of your own car for work Estimate of kilometres up to
travel (not to and from work) 5,000km
D2 Travel not reimbursed by your Accommodation
school Flights
Car Hire
Public Transport
D3 Work clothing School Logo or Protective $
D4 Self-education (must be a Course Name
link between the course and Institution
your current employment)
Course Fees $
Textbooks $
Travel $ Or estimate km
D5 Other work expenses Bank Fees $
Books and Journals $
Computing (< $300) $
Computing (> $300) $ Purchase date
Description
Home Office (Estimate of
hours spent working from
home each week)
Internet (monthly cost) $ % work use
Memberships $
Phone (monthly Cost) $ % work use
Seminars $
Stationery $
Subscriptions $
Sun Protection (Hat, $
sunglasses, sunscreen)
Teaching aids, resources $
Teacher registration $
Union Fees $
Working with Children $
check
D9 Donations $
D10 Tax Affairs (Cost of getting $
your tax done last year)
D15 Other Income Protection $
Insurance
10 NTEU TAX GUIDE 2017You can also read
