Tax Tip No 1. SEE FORSYTHS TO COMPILE RETURNS

There are many fine lines between a genuine deduction and a false claim which could attract penalties from the ATO. For instance a stopwatch for school use may be deductible but a watch with a stopwatch function is not.

Prizes for students are deductible but individual gifts to students to meet their education needs because they don’t have appropriate resources are not.

Avoid the problems by getting FORSYTHS to review and advise you on claims as well as completing returns online, by mail, over the telephone or by visiting our offices.

Tax Tip No 2. KEEP RECEIPTS

Many teachers think about this when tax time arrives and they promise themselves to do better next time. Keep an envelope in cupboard at home and when emptying pockets or purses simply put appropriate receipts in the envelope. Simple, effective and money in your pocket at tax time.

DEDUCTIONS. THINK: How much money will I get back from my weekly tax payments?

• General examples include stickers, prizes, sunscreen, sunglasses, sun hats, photos, reference books, stationery, DVDs, seminars related to teaching, craft materials, costs related to a classroom pet, first aid supplies and courses.
• Union dues (but not joining fee) and professional association fees.
• Journals and magazines relating to subjects taught i.e. wood work magazines, cook books, music DVDs, theatre tickets. Have to be related to your subjects.
• Consider electricity if marking work or researching work at home. Twenty cents per hour and this also covers wear and tear on carpets, paint and furnishings. Need to keep a diary for one month to substantiate usage.
• Keep a phone diary for local and STD calls related to school.
• Computer and internet use should also be recorded in a diary for one month to determine the ration of work related to private use.
• Newspapers are deductible if purchased for school use but if for general reading by you, then will be treated as private.
• Reimbursed for cost of computer, laptop, camera? In some cases you will not need to declare the reimbursement as income and will also be able to claim the cost of the item on your return.
• Clients can ask FORSYTHS if the above involves Fringe Benefits Legislation. Items under $300 will get immediate claim while items over will need to be depreciated.

WORK RELATED TRAVEL

If you travel less than 5000km for work there is no need to keep a logbook but should have a diary to substantiate travel actually done.

Essentially except for the following examples you have to be carrying bulky equipment to qualify. Taking homework home to mark won’t count for a number of reasons. ATO considers it, a personal choice for you to take work home, so don’t consider it work related.

These situations will allow you to claim your car expenses. They are very specific so you should see your tax advisor at FORSYTHS to ensure you meet the criteria for a claim.

1. Itinerant required to work at different locations during the day. You can claim costs from leaving home to arriving back.
2. Travel after you have started work. Meetings at other schools, purchasing supplies for school etc.
3. Abnormal workplace. Does not apply to relief teachers, however for teachers with a permanent normal workplace then having to travel to another workplace for meetings or class is a travel claim. If it is part of a normal schedule however such as two days at one work place and three days at another then it is simply home to work travel and not allowable.
4. Home as a base of operations. This is for educators where base of work is done at home and they simply travel to venues for meetings, lectures etc.
5. Bulky equipment. If equipment is bulky or heavy (20kg+) and there is nowhere safe to store it at work (somewhere nobody else has a key) then you may be able to claim for taking equipment to work. This is of use to relief teachers who may have to carry teaching aids and equipment to various schools.
6. Transporting Students. Whenever you are transporting students in relation to your work (even if you are picking them up to travel to normal work place such as coach picking up players for a game at school) you can claim the cost including home to collect students.
7. Work related tasks on way to and from work. Must be significant. Again it is important to run your case past one of FORSYTHS tax preparers to ensure your idea of significant agrees with the ATO idea. Dropping off mail on way home is not significant, however if it takes you 2km out of your way each day then the extra 2km could be claimed. (Extra $300 claim).
   Checking availability of sports grounds, concert venues etc. would be significant items and could make whole trip worthwhile.
8. Casual Teachers. If you have to carry bulky equipment (guitar, books, story books, sports equipment) if only in a school for a day. If more than one day then first and last trip may qualify. Also if at more than one school during a day, without returning home.

IF CAR IS SALARY SACRIFICED HOWEVER YOU MAY NOT BE OWNER OF CAR AND CLAIMS MAY NOT BE ALLOWED.

RELOCATION COSTS

Not allowable normally but a simple solution could be to salary sacrifice the relocation costs as they may be an exempt fringe benefit for the employer. Make sure costs are not reimbursed to you but actually paid by employer.

• Travel, Meals and Accommodation en route including family members
• Temporary accommodation in the old or new location
• Home sale and purchase costs. For example Stamp Duty, Legal Fees and Commissions.

SELF EDUCATION

Must be directly related to your teaching job as it improves skills or enables you to keep up to date.
Expenses include travel, text books, stationery, telephone and internet, Student Union and Course fees and Capital items such as computers, desks, printers etc.

Again important to check with a FORSYTHS’ tax preparer as strict interpretations are applied by the ATO.

UNIFORMS

• Can claim costs to purchase, maintain and wash a strictly enforced compulsory uniform.
• A non-compulsory uniform can also be claimed if it is part of a registered design.
• Protective clothing such as sun shirts, overalls and aprons can be claimed.
• Occupation specific. Graduation gown is about it here.

EXCURSIONS

Costs of admissions on school excursions is deductible. Formals are not and nor are any other social occasions.

FORSYTHS CAN HELP.

FOR FURTHER ADVICE OR TO MAKE AN APPOINTMENT CALL OUR OFFICE
(07) 49531099 OR EMAIL US