NTEU Tax Guide 2009

NTEU TAX GUIDE 2009 w w w. n t e u . o rg . a u / t a x

Contents Budget 2009................................................... 3

Deductions...................................................... 7

Lifting the retirement age to 67 Extending the First Home Buyers Grant Offering a further 10,000 places under PPP Funding Medicare Levy Surcharge 18 weeks’ Paid Maternity Leave Private Health Insurance Rebate Income Tax Rates

Home office Insurance Travel expenses Motor vehicle expenses Self education expenses Gifts and donations Clothing Managing your tax affairs Other deductions Rental property expenses

3 3 3 3 3 3 3

The Tax System................................................ 4 Targets for 2009 Changes for 2009 Self Assessment Who needs to lodge a return?

Record Keeping The lodgment process – Self Lodgment The lodgment process – Using a Tax Agent

4 4 4 5 5 5 5

Income............................................................ 6 Salaries and wages Allowances Sickness and insurance payments Lump sums Rent Dividends Interest Pensions Other government allowances Payments, supplements and benefits Capital Gains Tax Business income Exempt income

6 6 6 6 6 6 6 6 6 6 7 7 7

7 7 7 8 8 8 8 9 9 9

Rebates/Offsets............................................... 9 Education tax rebate Low Income tax offset Housekeeper tax offset Invalid relative tax offset Parent or spouse’s parent tax offset Private health insurance rebate Senior Australians tax offset Mature age worker tax offset Net medical expenses tax offset Franking tax offset Termination payments

9 9 9 9 9 9 10 10 10 10 10

Do your 2009 tax NOW!................................. 11 Online

By Phone

By Post

11 11 11

NTEU contact details Teacher Tax contact details

16 16

This guide has been prepared for NTEU members for their information only. Australian Tax Legislation is a complex body of law and members should seek qualified tax advice for their personal situation. While every effort has been made to ensure that the information in this guide is accurate, NTEU or Teacher Tax carries no responsibility for its application. The advice given is to be considered general.

We encourage members to contact Teacher Tax on (02) 8006 5020 to discuss their personal situation. NTEU members will be offered a discount rate.

NTEU Tax Guide 2009, Published by National Tertiary Education Union ©2009. Written by Teacher Tax. Online version at www.nteu.org.au/tax.

Budget 2009 The Federal Budget was brought down on 12 May 2009. It has been well documented that economic conditions globally have significantly deteriorated in the last 12 months.

The budget at a glance included: • A deficit of $57.6 billion.

• An increase in the aged pension.

• Lifting the retirement age to 67.

• Extending the first home owners grant.

• Offering a further 10,000 places under PPP funding.

• 18 weeks’ paid maternity leave.

• Increasing the Medicare surcharge for some uninsured tax payers.

• Reducing the private health insurance rebate for some tax payers.

The major aspects of the budget that may be of interest to NTEU members include the following.

Lifting the retirement age to 67

For families: 0 – $150,000

0%

$150,000 – $180,000

1%

$180,000 – $240,000

1.25%

$240,000+

1.5%

18 weeks’ Paid Maternity Leave This measure was announced in this year’s Budget, but will not be introduced until 2013.

Private Health Insurance Rebate As well as increasing the Medicare levy surcharge for some taxpayers, the Budget also introduced measures that reduce the amount of tax rebate on private health insurance available to some taxpayers. These measures will be introduced from 1 July 2010. The following table outlines the changes:

Australians will now have to work until age 67 to receive the age pension. These measures will be introduced gradually over the next 15 years.

Income levels

Below 65 yr

65 yr +

70 yr +

$75,000 single or $150,000 family

20%

25%

30%

Extending the First Home Buyers Grant

$90,000 single or $180,000 family

10%

15%

20%

$120,000 single or $240,000 family

0%

0%

0%

The First Home Buyers Grant ‘boost’ of an extra $7,000 will be extended until 30 Sept 2009. It will then be halved for the last quarter of the year and be phased out on 1 January 2010.

Offering a further 10,000 places under PPP Funding

Income Tax Rates

The Productivity Places Program (PPP) is aimed at ‘skilling’ recently retrenched and other vulnerable community sectors.

The training is provided in specific subjects by Registered Training Organisations.

From 1 July 2009

Medicare Levy Surcharge The Medicare levy surcharge is an extra payment made by taxpayers earning a certain amount who do not have private heath insurance. The Medicare levy surcharge rates will change from 1 July 2010. The following thresholds will apply.

For singles: 0 – $75,000

0%

$75,000 – $90,000

1%

$90,000 – $120,000

1.25%

$120,000+

1.5%

From 1 July 2010

Income

Tax rate %

Income

Tax rate %

$0 - $6,000

0

$0 - $6,000

0

$6,001 - $35,000 15

$6,001 - $37,000 15

$35,001 $80,000

30

$37,001 $80,000

30

$80,001 $180,000

38

$80,001 $180,000

37

180,001+

45

180,001+

45

NTEU TAX GUIDE 2009

3

The Tax System Targets for 2009 Each year, the ATO announce specific areas they intend targeting.

Investors The focus will be on capital gains issues in relation to the sale of property and shares and, secondly, the declaration of rental income and appropriate deductions.

With the global financial turnaround, many taxpayers have incurred a capital loss this year. If this is the case, exercise extreme caution and be sure to contact a professional as this is a complex area.

The ATO uses ‘pre filling’ where certain institutions (e.g. banks) report information directly to the ATO for cross checking. This often includes interest, dividend income and unit trust distribution.

They have also stated that they will be on the lookout for aggressive new financial products or schemes to ensure they comply with the law.

Executives and directors Again this year, senior executives and directors of public companies as well as private companies and resident executives and directors of foreign-owned companies will be targeted to ensure that all benefits are properly recorded.

Work-related expenses The ATO reports a rise each year in the amount of ‘work related expenses’ that are claimed on annual tax returns. They have stated that they will focus on ‘out of pattern’ claims for self education, cars and travel.

Tax Agents If you are charged to have your tax return completed, it must be by a 4

NTEU TAX GUIDE 2009

registered Tax Agent. The ATO will be continuing investigations into non qualified people who charge a fee to complete returns.

Changes for 2009 Education Tax Refund The major change for this tax season will be the introduction of the Education Tax Refund.

The ATO has stated that: Eligible education expenses are items that support a child’s or independent student’s primary or secondary school education. They include the purchase, lease, hire or hire-purchase costs, repairs and running costs of: • laptops, home computers and associated costs • computer-related equipment such as printers, USB flash drives, as well as disability aids to assist in the use of computer equipment for students with special needs • home internet connections, including the costs of establishing and maintaining them • computer software for educational use • word processing, spreadsheet, database and presentation software, internet filters and antivirus software • school textbooks and other paperbased school learning material, including prescribed textbooks, associated learning materials, study guides and stationery, and • prescribed trade tools - for example, tools required to complete a school-based apprenticeship.

The Education Tax Refund thresholds are up to $750 per Primary School students and up to $1500 per Secondary School student.

For more information, check out www.educationtaxrefund.gov.au Low Income Offset Low income earners can have their tax offset by a maximum of $1200, which is an increase from $750.

Small Business and General Business Tax Break Although this only applies to business, it is an important change for this year.

Eligible Small Businesses, in addition to normal depreciation, can also claim a ‘one off’ tax break of 50% for an eligible asset purchased between 31 December 2008 and 31 December 2009.

Self Assessment Australia has a self assessment taxation system. This means that your return is accepted initially by the Australian Taxation Office as truthful.

This does not mean, however, that the ATO will not, from time to time, check the validity of your claims. This can occur, for example, by data matching and auditing.

In line with this, the ATO outlines the following responsibilities of taxpayers: 1. Be truthful in your dealings with us.

2. Keep records in accordance with the law.

3. Take reasonable care in preparing your tax returns and other documents and in keeping records.

4. Lodge tax returns and other required documents or information by the due date.

5. Pay your taxes and other amounts by the due date.

6. Be cooperative in your dealings with us.

In return, the ATO promise to work within the following service charter: 1. Treat you fairly and reasonably.

2. Treat you as being honest in your tax affairs unless you act otherwise.

3. Offer you professional service and assistance to help you understand and meet your tax obligations.

4. Accept you can be represented by a person of your choice and get advice about your tax affairs.

5. Respect your privacy.

6. Keep the information we hold about you confidential in accordance with the law.

7. Give you access to information we hold about you in accordance with the law.

8. Give you advice and information you can rely on.

9. Explain to you the decisions we make about your tax affairs.

10. Respect your right to a review.

11. Respect your right to make a complaint.

12. Administer the tax system in a way that minimises your costs of complying.

13. Be accountable for what we do.

Who needs to lodge a return?

In general, if you have earned income over $6,000 in the financial year, you must lodge a return or you have paid any tax at all. Even if you haven’t been employed, you may have been credited bank interest and paid withholding tax.

Special rules apply to Senior Australians (a male aged 65 years or more or a male

veteran or war widower aged 60 years or more who met the veteran pension age test. A female aged 63 years or more or a female veteran or war widow aged 58 years or more who met the veteran pension age test.)

must be lodged by 31 October. The ATO has the power to fine the taxpayer up to $110 for every 28 days the return is late to a maximum of $550. Interest on any tax payable may also be charged.

Check with your Tax Agent.

Our advice is to get it in on time and save the stress and hassle.

Even if you are not required to lodge a return, in some cases, you need to advise the ATO by filling out the prescribed Non Lodgment Advice.

The return is assessed by the ATO and you are issued with a Notice of Assessment. This process can take up to 6 weeks.

Record Keeping

The Notice of Assessment will summarise your taxable income for the year. It may include a tax refund or an amount payable.

Because the tax system is self assessment, it is essential that taxpayers be able to substantiate their income and expenses. In general, records should be kept for a period of five years from the date you receive your notice of assessment.

Records should be kept in such categories as: • Payments you have received.

• Expenses related to payments.

• Acquisition or disposal of an asset – such as shares or a rental property.

• Tax deductible gifts or donations.

• Medical expenses.

If you’re not sure whether or not to keep a record, the best advice is to err on the side of caution. It is better to have too many records than not enough.

The lodgment process – Self Lodgment Tax returns are submitted either by individuals or their Tax Agent to the Australian Tax Office on an annual basis.

If you are doing the return yourself, it

If you have any objections to your Notice of Assessment, you need to call the ATO as soon as possible.

The lodgment process – Using a Tax Agent If you lodge through a Tax Agent, you may be able to avail yourself of the general extension of time granted to Tax Agents (usually 31 March 2010).

To avoid penalty however, you must be registered as a client with that Tax Agent by 31 October 2009.

There are other advantages of using a Tax Agents. These can include: • A quicker turnaround for refunds.

• A thorough and professional check to ensure all information is correct.

• Advocacy in the case of audit / dispute.

• Tax planning to reduce tax.

NTEU TAX GUIDE 2009

5

Income In general, income tax is calculated by subtracting allowable deductions from assessable income.

Assessable income can be obtained in a variety of ways. The income we are likely most familiar with is that which is paid in return for our labour (employment income).

It should be noted that payments received through the Governments various Economic Security Payments this financial year are generally not counted as assessable income.

when you terminate your employment.

That is why the amounts are separately recorded on your payment summary and separately recorded on your tax return.

We suggest that you obtain professional advice if you have any lump sum payments labeled A B C D or E on your payment summary.

Investment Income could include:

Rent

Assessable income could include:

This is the amount of money you earn when you rent out your property.

Salaries and wages

Dividends

Salary and wages are the main forms of payments made to an employee.

Generally they are considered to be payments made: • To an individual • As remuneration for services, and • Provided under a contract of service (employment contract).

May include: • Dividends paid directly to you.

• Dividends applied under a dividend reinvestment plan.

• Dividends that were otherwise dealt with on your behalf.

• Bonus shares that qualify as dividends.

Allowances

Interest

Allowances and earnings from your payer may include: • Car, travel or transport allowances.

• Allowances for tools, clothing or laundry.

• Dirt, height, site, risk, meal or entertainment allowances.

• Allowances for qualifications – for example, a first aid certificate.

• Interest earned from financial institution accounts and term deposits unless you were a non-resident and have paid, or should have paid, non-resident withholding tax on that interest.

• Interest the Tax Office gave you or credited you with.

• If you opened or operated an account for a child 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 interest from the account.

Sickness and insurance payments Any payment you received under such a policy for loss of your income is usually considered assessable.

Lump sums Certain payments in respect of unused annual leave and long service leave are entitled to concessional tax treatment 6

NTEU TAX GUIDE 2009

Government Income could include:

Pensions • • • • •

A ge pension Widow B pension Age service pension Partner service pension Disability support pension and you have reached age-pension age • Wife pension and either you or your partner was of age-pension age • Invalidity service pension and you have reached age-pension age.

Other government allowances These may include such income as: • Newstart allowance • Youth allowance • Mature age allowance • Partner allowance • Sickness allowance • Widow allowance • Bereavement allowance • Training for Employment Program allowance • New Enterprise Incentive Scheme allowance.

Payments, supplements and benefits • • • • • •

Austudy payment Carer payment Education entry payment Parenting payment (single) Parenting payment (partnered) Exceptional circumstances relief payment or farm help income support • Education payment of any of the following and you were aged 16 years or older • ABSTUDY living allowance • Payment under the Veterans’ Children Education Scheme • Income support supplement

Capital Gains income could include any capital gain or capital loss.

Capital Gains Tax Some of the more common CGT events or situations that may produce a capital gain or capital loss are: • An asset you own is lost or destroyed (the destruction may be voluntary or involuntary).

• You give an asset away.

• You enter into an agreement not to work in a particular industry for a set period of time.

• Shares you own are cancelled, surrendered or redeemed.

• A liquidator or administrator declares that shares or financial instruments you own are worthless.

• You grant an option to someone to buy an asset that you own.

• You receive a non-assessable payment from a unit trust or managed fund.

• You dispose of a depreciating asset that you used for private purposes.

• You stop being an Australian resident.

earnings from you operation through a Sole Trader, Partnership, Trust or Company structure. The ATO makes a distinction between what is considered a business and what is a hobby.

Exempt income There is a wide range of income that is not assessed for tax purposes. In general, some types of Government pension’s allowances and other payments may not be deemed as assessable.

Business income Business income must also be included on your tax return. This may include

Deductions Deductions are expenses that have been incurred in earning any assessable income.

Incurring an expense can include actually paying money or receiving a bill (invoice) for the expense.

You must have written evidence to prove your claims if your total claims exceed $300.

Deductions can fall into the following broad categories.

Home office Some employees carry out work activities in the home office. There are many expenses that can be claimed for this as well.

These may include: • The decline in value of and repairs to your home office furniture and fittings.

• Heating, cooling, lighting and cleaning.

Alternatively, the ATO have set a fixed rate of 26 cents per hour for home office expenses for heating, cooling, lighting and the decline in value of furniture instead of keeping details of actual costs.

Added to the expenses above, the following may be claimed on a pro rata basis (apportioned for private and work use): • Calculators and electronic organizers • Computers and computer software • Answering machines • Telephones and mobile phones • Facsimile machines • Pagers • Hiring equipment • Technical or professional publications • Teaching aids • Work-related telephone calls.

Insurance Insurance against the loss of income is usually a legitimate expense.

It should be noted that this does not include Private Health insurances and the like.

Travel expenses If you have to travel away for work, then certain expenses may be deductible: These may include: • Air, bus, train, tram and taxi fares.

• Bridge and road tolls

• • • •

Parking Car hire fees Meals Accommodation.

For a guide on the amounts that can be claimed, access www.ato.gov.au.

A recent decision in LENTEN v FC of T shed some new light on circumstances in which educators may, in limited circumstances, be able to claim a portion of overseas travel as a legitimate expense. Some of the judge’s comments: ...the dominant purpose of the applicant’s overseas travel was to improve his knowledge and skill levels as a teacher for the purpose of enhancing his promotional opportunities…..the applicant in this instance undertook the travel with a view to supporting his colleagues in developing and improving a curriculum mandated by the State government and in attaining a level of extra-curricular professional activity consistent with standards also mandated by the State Government.

There are strict guidelines and we suggest seeking professional advice before attempting to claim any overseas travel expenses.

NTEU TAX GUIDE 2009

7

Motor vehicle expenses These are claimed when you have used your vehicle for work purposes. It does not include travel between work and home. However, the following trips may be included: • Travel directly between two separate workplaces..

• Travel for work-related purposes from your normal workplace to an alternative workplace and back to your normal workplace or directly home.

• Travel between two workplaces or between a workplace and a place of business.

Expenses can be claimed using one of four methods: Method 1 – Cents per km.

This is the most common method, allowing a claim of up to 5000 business km at set rate. The following table shows the applicable rate, depending on your cars engine capacity.

Engine capacity (nonrotary)

Engine capacity (rotary engine)

Rate (cents)

0–1,600cc

0–800cc

58

1,601– 2,600cc

801– 1,300cc

69

2,601cc+

1,301cc+

70

The other three methods available are: Method 2 – 12% of original value.

Method 3 – One-third of actual expenses Method 4 – Logbook It is suggested that you seek the advice of a Tax Agent prior to selecting a method.

Self education expenses The expenses that you incur in completing training provided by a school, 8

NTEU TAX GUIDE 2009

college, university or other place of education. You must have undertaken the course for use in carrying on a profession, business or trade or in the course of employment.

It MUST relate to your work as an employee at the time you were studying.

Such expenses may include: • Textbooks • Student union fees • Stationery • Course fees • Travel expenses • Decline in value of equipment There has been, however, some confusion of the deductibility of ‘Success Seminars’, often which involve elements of personal motivation and empowerment. Whilst they vary from course to course, in general, the costs associated with this type of training are not tax deductible.

The ATO’s view is that: the material covered in seminars of this type is too general to be classed as relating specifically to incomeproducing activities.

It would be wise, however, to seek personalised advice on this matter.

Gifts and donations Gifts and donations to can be claimed if they meet certain conditions. Firstly, they must be made to a Deductible Gift Recipient.

A list of such organisations can be found at www.abn.business.gov.au.

Gifts can include: • $2 or more: money.

• Property < 12 mths: property purchased during the 12 months before the gift was made.

• Shares ≤ $5,000: listed shares valued at $5,000 or less, and acquired at least 12 months before the gift was made.

• Trading stock: trading stock dis-

posed of outside the ordinary course of business.

• Cultural gifts: property under the Cultural Gift Program.

• Heritage gifts: places included in the National Heritage List, the Commonwealth Heritage List or the Register of the National Estate.

Examples of payments that are not gifts include: • Purchases of raffle or art union tickets.

• Purchases of chocolates, pens, etc.

• The cost of attending fundraising dinners, even if the cost exceeds the value of the dinner (you can claim the lesser of $150 or 20% of the market value and certain auction items).

• Membership fees.

• Payments to school building funds as an alternative to an increase in school fees.

• Payments where the person has an understanding with the recipient that the payments will be used to provide a benefit for the donor.

Clothing You can claim the cost of clothing if it falls into one of the following categories: • A compulsory uniform - a set of clothing that, worn together, identifies you as an employee of an organisation having a strictly enforced policy that makes it compulsory for you to wear the uniform while at work.

• A single item of distinctive clothing, such as a jumper or tie, if it is compulsory for you to wear it at work.

Generally, clothing is distinctive if it has the employer’s logo permanently attached and the clothing is not available to the general public.

• A non-compulsory BUT registered uniform.

• The cost of buying, hiring, replacing or maintaining protective clothing.

You can also claim a deduction for the cost of clothing that you use at work to protect your ordinary clothes from soiling or damage – for example, laboratory coats or art smocks. Also, you are allowed to claim for sunscreen, sunglasses and sunhats.

Managing your tax affairs The cost of managing your tax affairs is a tax deductible expense in the year that it is incurred (e.g. this year, you can claim last year’s costs). These expenses must relate to a qualified Tax Agent.

They can include the preparation and lodgment, advice, costs of travel to and from the advisor and obtaining reference works.

Other deductions Any expense incurred in earning income is usually deductible, so it is impossible to compile an exhaustive list. The following are examples of ‘other’ expenses that may be deductible for Educators: • Excursions, school trips and camps.

• First aid courses.

• Union and professional association fees.

• Dedicated stopwatches.

We suggest you contact you Tax Agent about any additional deductions.

Rental property expenses You can claim expenses relating to your rental property but only for the period your property was rented or available for rent – for example, advertised for rent.

Expenses could include: • Advertising for tenants.

• Bank charges.

• Body corporate fees.

• Borrowing expenses.

• Council rates.

• Decline in value of depreciating assets.

• Gardening and lawn mowing.

• Insurance.

• Land tax.

• Pest control.

• Property agent fees or commissions.

• Repairs and maintenance.

• Stationery.

• Telephone.

• Water charges.

• Travel undertaken to inspect the property or to collect the rent.

If only part of your property is rented out, these expenses must be apportioned.

Rebates/Offsets Rebates are different to deductions.

Deductions reduce your assessable income, whereby rebates directly reduce the tax payable. They are also known as tax offsets. Usually, tax rebates can only reduce your tax payable to zero, with the exception of franking, baby bonus and private health insurance.

This is a complicated area of tax. Seek professional guidance. Below is a basic outline of the major rebates.

Education tax rebate The Education Tax Refund thresholds are up to $750 per Primary School students and up to $1500 per Secondary School student.

For more information, please see Changes for 2009 on page 4.

Low Income tax offset

Invalid relative tax offset

Low income earners can have their tax offset by a maximum of $1200.

That means that, if the taxpayer earns $14,000 or under, they effectively do not pay any tax. This change has been reflected in the ATO’s published PAYG(w) rates from 1 July 2008.

If you maintained an invalid relative you may be entitled to a tax offset. The maximum tax offset is $745 for each dependent invalid relative.

Housekeeper tax offset

If you maintained your parent, your spouse’s parent you may be entitled to a tax offset. The maximum tax offset is $1,540 for each dependent parent or spouse’s parent.

A housekeeper is a person who worked full time keeping house for you and cared for: • A child of yours aged under 21 years.

• Your invalid relative.

• Your spouse who received a disability support pension.

This is a complicated area of tax. Seek professional guidance for your particular circumstances.

Parent or spouse’s parent tax offset

Private health insurance rebate If you have private health insurance, you are entitles to a tax rebate. Most people claim this throughout the year in the form of a premium reduction. You are usually entitled to a rebate if there NTEU TAX GUIDE 2009

9

is an amount listed at Section G on your yearly statement.

apply to people who earn net income greater than $63,000 pa.

The maximum rebate is shown below.

Net medical expenses tax offset

Age

Amount of rebate

< 65 years

30% of the amount of premium paid

65 to 69 years (inclusive)

35% of the amount of premium paid

> 70 years

40% of the amount of premium paid

As outlined previously however, these rates will be changing for the 2010 tax year.

Senior Australians tax offset Males aged over 65 and females aged over 63 are usually entitled to a tax offset.

Mature age worker tax offset To encourage people to stay in the workforce, the ATO provide a maximum $500 tax offset for workers over 55 who meet certain conditions. This offset does not

10

NTEU TAX GUIDE 2009

If net medical expenses for your family were over $1500 in the financial year, you can claim a rebate for 20 cents in every dollar greater this.

Net medical expenses are calculated by adding your out of pocket expenses and deducting any refunds (e.g. by Medicare or Private Health Insurance)

Franking tax offset If you have been a shareholder, you usually receive dividends which have already had tax paid on them by the company. These are called franking credits. It is important to keep all share transactions record in a safe, orderly manner to allow for these calculations.

Termination payments An Eligible Termination Payment (ETP) is a form of lump sum payment paid by

an employer or a superannuation fund.

These payments are taxed at a lower rate. As each ETP is very different, a registered Tax Agent should help you if you have received an ETP. They may include: • A payment in lieu of notice.

• A payment for unused sick leave.

• A payment for unused rostered days off.

• A ‘golden handshake’ whether paid under contract.

• Industrial award obligation or the employer’s desire to recognise past service.

• Compensation for loss of job.

• Compensation for wrongful dismissal.

• Redundancy payment that exceeds the tax-free limit.

• A payment because of the employee’s permanent disability.

• Payment under an approved early retirement scheme that exceeds the tax-free limit.

Do your 2009 tax NOW! At Teacher Tax, we offer competitive rates on tax returns. Our system has been designed BY Teachers FOR Teachers.

There are 3 main ways of doing your tax with us:

Online Simply email your name and phone number to info@teachertax.com.au and we will arrange a quote within 24 hours.

By Phone Call us to discuss your details. We can then guide you through our easy step-by-step process.

By Post Use the form below and send us your documents. We have included a price guide below to let you know your fee.* Simply fill in the personal details and as many other details as possible and post to: Teacher Tax PO BOX 524 Macksville NSW 2447 * We guarantee the price of $89.10 (incl GST) per individual tax return. This is for individuals with relatively simple tax affairs. This includes all the deductions listed overleaf and if you answer questions 1 â&#x20AC;&#x201C; 7 only. If you answer questions 8 onwards, please send us your documents, but weâ&#x20AC;&#x2122;ll confirm a quote before processing. No obligation.

Personal Details First Name Middle Name(s) Last Name D.O.B. T.F.N. Street Address Suburb Postcode State Email Address Home Phone Mobile Fax Proceed to questionnaire overpage...

Liability Limited by a scheme approved under professional standards legislation.

NTEU TAX GUIDE 2009

11

QUESTIONS

DETAILS

PROOF REQUIRED

Who is your employer? Include any business who has given you a PAYG Summary.

D1

Were you required to use your vehicle for work purposes?

PAYG Payment Summary YES / NO

If YES, place the approx km next to the appropriate box and complete D1A

# Travel directly between two separate workplaces because you have two different employers – for example, you have a second job

#

Travel for work-related purposes from your normal workplace to an alternative workplace and back to your normal workplace or directly home – for example, if you need to go to a regional meeting/ excursion

#

Travel between two workplaces or between a workplace and a place of business – for example, between two schools or between your school and the Exam Marking Centre

#

Any other reasons? Please outline.

#

D1A

Give the details of your car (incl number plate, make/model and engine capacity)

D2

Did you have any other travel expenses? (You cannot claim costs met by the school or costs that are reimbursed)

YES / NO

#

D3

Did you have any “work related clothing” expenses?

YES / NO

#

If YES, place the cost next to the appropriate box (write details below)

#

A compulsory uniform – a set of clothing that, worn together, identifies you as an employee of an organisation having a strictly enforced policy that makes it compulsory for you to wear the uniform while at work.

#

A single item of distinctive clothing, such as a jumper or tie, if it is compulsory for you to wear it at work. Generally, clothing is distinctive if it has the employer’s logo permanently attached and the clothing is not available to the general public.

#

A non compulsory BUT registered uniform

#

The cost of buying, hiring, replacing or maintaining protective clothing. You can also claim a deduction for the cost of clothing that you use at work to protect your ordinary clothes from soiling or damage – for example, laboratory coats or art smocks.

#

# Expense must be able to be proved if audited 12

NTEU TAX GUIDE 2009

QUESTIONS D4

Have you incurred a self education expense? (There MUST be a direct connection between your selfeducation expense and your work as a teacher)

DETAILS

PROOF REQUIRED

YES / Please give brief description of course.

NO

#

If YES, place the cost next to the appropriate box.

Textbooks

#

NOTE - You cannot claim costs met by the school or costs that are reimbursed

Student union fees

#

Stationery

#

Course fees

#

Travel expenses

#

Decline in value of equipment

#

D5

Have you made any donations to registered charities?

YES / NO

#

D6

If you used a tax agent last year, how much were you charged? (claimable expense).

YES / NO

Please provide the agents name and address.

If you have incurred the following expenses, provide brief details (as well as cost) D7

Calculators and electronic organisers

YES / NO

#

D8

Computers and computer software YES / This is usually a pro rata expense - apportioned for NO private and work use.

#

D9

Answering machines, telephones, facsimile machines, mobile phones, pagers and other telecommunications equipment

YES / NO

#

D10

Excursions, school trips and camps

YES / NO

#

D11

First aid courses

YES / NO

#

D12

Hiring equipment

YES / NO

#

D13

Technical or professional publications

YES / NO

#

D14

Seminars, conferences and training courses

YES / NO

#

D15

Teaching aids

YES / NO

#

# Expense must be able to be proved if audited NTEU TAX GUIDE 2009

13

QUESTIONS

DETAILS

PROOF REQUIRED

D16

Work-related telephone calls.

YES / NO

#

D17

Union and professional association fees (usually listed on your group certificate â&#x20AC;&#x201C; in which case, disregard)

YES / NO

#

D18

Dedicated stopwatches

YES / NO

#

Please answer the following questions about your tax affairs Q1

Have you earned interest from any source?

YES / NO

Bank interest - Call your bank to obtain the exact amount or use your July bank statement

Q2

If you have school children, did you have any eligible education expenses?

YES / NO

Receipts

Q3

Do you have a HECS or tax debt? If so, how much?

YES / NO

HECS Statement

Q5

Do you receive any Government pensions or allowances incl FTB?

YES / NO

Centrelink Statement of Benefits including Pensions, Job Start, etc

Q6

Do you have Private Health OR Income Protection Insurance (please specify)?

YES / NO

Private Health Insurance Statement

Q7

Has you family had net medical expenses of greater than $1500?

YES / NO

Details of expense and Medicare number.

Q8

Have you sold an investment property this year?

YES / NO

Purchase details and settlement details

Q9A

Do you own shares? Please also indicate whether you own T3 or Wesfarmers shares.

YES / NO

Dividend Statements

Q9B

Have you sold any shares this year? YES / NO

Sales Certificates

Q10

Do you have another source of income (e.g. second job/business)?

YES / NO

PAYG Payment Summary

Q11

Have you been charged any deductible interest? (e.g. investment loan, tax debt)

YES / NO

Bank Statements

# Expense must be able to be proved if audited 14

NTEU TAX GUIDE 2009

QUESTIONS

DETAILS

Q12

Have you made any personal superannuation contributions on behalf of yourself or a spouse?

YES / NO

Q13

Is there any other information that you feel will assist with the preparation of your return?

YES / NO

Q14

Do you have dependant children? (please provide dates of birth and names)

YES / 1 NO

PROOF REQUIRED Superannuation Statement

2 3

Q15

Do you have (or a share in) an investment property?

YES / If YES, please provide details on a separate sheet.

NO We will call you at a convenient time to discuss specific details.

AGREEMENT â&#x20AC;&#x201C; Please sign and send I, ___________________________________, of _________________________________________, Name Address hereby direct & instruct Teacher Tax to provide the following services and carry out the following work and to advise on my behalf, from time to time, as and when they fall due or as requested by me.

1. Accounting and management services.

2. Taxation planning.

3. Income tax returns.

I personally undertake and guarantee to pay all professional fees and disbursements as agreed on behalf of myself or any entity previously mentioned. This does not diminish my rights.

AUTHORITY TO DEDUCT At my request and in consideration of not being required to pay in advance, I hereby direct and authorise Teacher Tax to receive, to bank and to deduct from ANY tax refund cheques or any other monies received from me (including third party cheques) or on my behalf, all fees in regards to tax returns prepared, accounting work performed, advice provided, disbursements, and any other fees incurred on my instructions, or the instructions of any person or entity listed below, such as solicitors fees, barrister fees, valuers fees, and any fees

or premiums paid on behalf of; 1. Myself.

2. Any of my relatives, including my husband/wife (defacto or otherwise), son, daughter, brother, sister, mother, father, mother-in-law, father-in-law etc.

3. Any other person or entity who may be related to me or of which I may be connected or associated with. I understand that a service fee as set

by Teacher Tax at the appropriate time will be charged.

I warrant that I have authority to give the above undertakings and authorities with regard to payment of your fees.

I understand that Teacher Tax will remit the balance of all monies due to me after deduction of each of the fees paid, etc as described above as soon as is practicable after the relevant bank clearance has been obtained. This authority shall remain in force in respect of future years unless revoked in writing. This does not diminish my rights.

Signed Client _______________________________________________ Date ______________________ Liability Limited by a scheme approved under professional standards legislation.

NTEU TAX GUIDE 2009

15

Teacher Tax contact details NSW & National PO Box 524, Macksville NSW 2447 Phone: (02) 8006 5020 Fax: (02) 8580 5073 (central fax system) Email: info@teachertax.com.au Web: www.teachertax.com.au

NTEU contact details

Victoria

National Office

PO Box 550W, Ballarat West VIC 3350

Phone: (03) 9254 1910

Phone: (03) 9014 9590

Fax: (03) 9254 1915 Address: PO Box 1323, South Melbourne VIC 3205

Western Australia

Email: national@nteu.org.au

Phone: (08) 6102 0560

Web: www.nteu.org.au Head Office Branch & DIvision details available at www.nteu.org.au/bd

PO Box 831, Campbelltown NSW 2560