Tax Guide
nteu.org.au/tax
2017
Contents
Deductions..............................................................................6
Budget 2017...............................................................................1 ATO Focus 2017.......................................................................1 Work-related expenses Rental Properties
1 1
Changes for 2017 .................................................................. 2 Individuals 2 Business 2
Changes for 2018 and Beyond........................................3 HELP repayments Medicare Levy Rental Properties Superannuation
Bank Fees 6 Car Expenses 6 Clothing 6 Donations & Gifts (incl School Building Funds) 6 Excursions, School Trips and Camps 6 Home Office 7 Insurance 7 Rental Property Expenses 7 Self-Education Expenses 7 Tax Returns 7 Teaching aids 7 Travel Expenses 8 Union and Professional Association Fees 8
3 3 3 3
Where to find your NTEU Tax Statement...............8
The Tax System.....................................................................4
Rebates and Offsets............................................................8
Who needs to lodge a return? 4 Record Keeping 4 Self-Assessment 4 Self-Lodgement 4 Using a Tax Agent 4
Income.......................................................................................5 Salary & Wage Income Government Income Investment Income Other Income
NTEU National Office PO Box 1323, South Melbourne VIC 3205 Ph: (03) 9254 1910 Fax: (03) 9254 1915 national@nteu.org.au www.nteu.org.au Branch & Divisions: www.nteu.org.au/branches
5 5 5 5
Invalid Carer Tax Offset Low Income Tax Offset Private Health Insurance Rebate Senior Australians and Pensioners Tax Offset Zone Tax Offset
8 8 8 8 8
Do your 2017 tax NOW!.....................................................9 Questionnaire........................................................................9
NSW & National PO Box 314, Bowral NSW 2576 Ph: (02) 8006 5020 Fax: (02) 4210 8682 (central fax system) info@teachertax.com.au www.teachertax.com.au Victoria Ph: (03) 9014 9590 WA Ph: (08) 6102 0560
NTEU Tax Guide 2017. 17th edition. Published by NTEU. Written by Teacher Tax. All rights reserved Š2017. ISBN 978-0-9946377-1-0. Online version at www.nteu.org.au/tax 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 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 application. The advice given is to be considered general. Information in italics has been directly sourced from Australian Government websites.
Budget 2017
ATO Focus 2017
The Federal Budget focuses on four choices to secure better days ahead. These are:
Third-party data is constantly providing the ATO with more and more information. With this added information, the ATO is now consistently comparing your claims with the average deductions made by taxpayers in similar occupations with similar incomes. If your claim is too far above the average this may raise a red flag. The ATO will be on the lookout for taxpayer’s making work-related claims when they have already been reimbursed for the expenses from their employer.
Stronger growth to deliver more and better paying jobs
Backing small business and investing in key infrastructure projects will boost job creation and help deliver much needed pay rises for Australians. Replacing the subclass 457 visa with a new temporary skilled visa restricted to critical skill shortages will protect Australian jobs. Guaranteeing the essential services that Australians rely on
In times of low wage growth, Australians are more focused on the delivery of essential services. Australians can be assured that important services in health care, housing, disability support, education and employment will continue to be delivered and strengthened. Some measures include establishing the Medicare Guarantee Fund and ensuring the National Disability Insurance Scheme is fully funded by increasing the Medicare levy by half a percentage point. Tackling cost of living pressures
We choose to tackle cost of living pressures for Australians and their families, taking action to ease the strain in areas such as housing affordability, power prices and child care. Not all Australians have enjoyed the benefits of our nation’s growth, and the budget seeks to ease the burden on household budgets and make housing more affordable for prospective buyers and renters and to support people who are homeless. Delivery of further investment in infrastructure across our cities and in our regions will ensure the benefits of Australia’s economic growth are shared broadly across the country. Ensuring the Government lives within its means
We are taking practical action to arrest the deficit and the growth in our debt, and doing all we can to preserve our AAA credit rating. That is what Australians want, and that is what we are committed to, ensuring our future generations are not burdened with debt. These measures will increase the economy’s performance that is vital to ensuring that we live within our means and are able to return the Budget to balance in 2020-21.
Work-related expenses Some common incorrect claims: • Car travel between home and work. • Car travel while carrying bulky tools or equipment. • Car expenses for a car that has been salary sacrificed. • Meal expenses for travel. • Private portion of work travel. • Everyday clothing that you wear to work (e.g a suit or black pants). • Self-education course fees that have been put through the HELP scheme. • Self-education costs not linked to your current job. • Private portion of phone or internet expenses. • Equipment costing more than $300. Rental Properties Some common incorrect claims; • Claiming all expenses for a holiday home sometimes reserved for private use by family and friends. Rent must reflect market rate and realistic efforts to let out the property must be made. • Claiming all the mortgage interest when part of the loan is for private expenses such as a car or holiday • Claiming large repairs and maintenance that should instead be added onto the capital costs of the property. Initial repairs and improvements to a property are also not deductible as repairs and maintenance. • Splitting the income and related expenses between owners differently to the ownership arrangement on the title deed.
NTEU TAX GUIDE 2017
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Changes for 2017 Individuals Income tax relief
From 1 July 2016 the income tax threshold will increase from $80,000 to $87,000 for the 32.5% rate. This effectively means the marginal rate of tax on incomes between $80,000 and $87,000 will be reduced from 37% to 32.5%. Medicare levy low income thresholds
The income thresholds have increased from $21,335 to $21,655 for singles and from $36,001 to $36,541 for families. For taxpayers eligible for the seniors and pensioners tax offset, the threshold has increased from $33,738 to $34,244. The family threshold for seniors and pensioners has increased to $47,670. The family income threshold will be increased by $3,356 for each dependent child or student. Business Simplified depreciation for small business
The immediate deduction of assets costing up to $20,000 was due to end on 30 June 2017. This has now been extended to 30 June 2018 for businesses with an annual turnover less than $10 million. This also applies to balances in the small business pool. From 1 July 2018, the thresholds for the immediate depreciation of assets will revert back to the previous arrangements (less than $1,000). Small Business Income Tax Offset
From 1 July 2016 the offset will increase from 5% to 8%. The discount will stay at 8% for eight years and will then increase to 10% in 2024/25, 13% in 2025/26 and 16% from 2026/27. The maximum offset available will continue to be $1,000 per year.
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NTEU TAX GUIDE 2017
Income Tax Rates (Residents) 2016/17
Taxable income $0 - $18,200 $18,201 - $37,000 $37,001 - $87,000 $87,001 $180,000 $180,001+
Tax Rate 0 19c for each $1 over $18,200 $3,572 plus 32.5c for each $1 over $37,000 $19,822 plus 37c for each $1 over $87,000 $54,232 plus 47c for each $1 over $180,000
Income Test Thresholds for 2016/17
Base Tier Tier 1 Singles $90,000 or $90,001less $105,000 Families $180,000 $180,001or less $210,000 Private Health Insurance Rebate (premiums paid to 31 March 2017) Under 26.791% 17.861% 65yrs 65-69yrs 31.256% 22.326% 70yrs or 35.722% 26.791% over Private Health Insurance Rebate (premiums paid after 1 April 2017) Under 25.934% 17.289% 65yrs 65-69yrs 30.256% 21.612% 70yrs or 34.579% 25.934% over Medicare levy surcharge Rates 0.0% 1.0%
Tier 2 $105,001$140,000 $210,001$280,000
Tier 3 $140,001 or more $280,001 or more
8.930%
0%
13.395% 17.861%
0% 0%
8.644%
0%
12.966% 17.289%
0% 0%
1.25%
1.5%
Changes for 2018 and Beyond HELP repayments From 1 July 2018 new HELP debt repayment income and repayment thresholds will be introduced. The minimum income threshold will be $42,000 with a 1% repayment rate and the maximum income threshold will be $119,882 with a 10% repayment rate.
income above $40,000. This offset provides up to $540 per year for the contributing spouse, allowing individuals to make contributions on behalf of their spouse who is under age 75, without the need for the spouse to satisfy the work test. Low Income Superannuation Tax Offset
From 1 July 2019 the Medicare Levy will be increased from 2% to 2.5%.
From 1 July 2017 a Low Income Superannuation Tax Offset will be introduced to reduce tax on superannuation contributions for low income earners. A non-refundable tax offset will be provided to superannuation funds, based on the tax paid on concessional contributions made on behalf of low income earners (adjusted taxable income under $37,000) up to $500.
Rental Properties
Personal contributions
Medicare Levy
Plant and Equipment Depreciation
From 1 July 2017 plant and equipment depreciation deductions will be limited to outlays actually incurred by investors. As of 9 May 2017 plant and equipment will continue to give rise to deductions for depreciation until either the investor no longer owns the asset, or the asset reaches the end of its effective life. Plant and equipment purchases after 9 May 2017 can be claimed as a deduction over the effective life of the asset. However, subsequent owners of the property are not able to claim deductions for plant and equipment purchased by a previous owner. Acquisitions of existing plant and equipment items will be reflected in the cost base for capital gains tax purposes for subsequent investors.
From 1 July 2017 individuals under age 75 can claim an income tax deduction for personal superannuation contributions. This is currently limited to self-employed individuals. Certain prescribed funds (such as all untaxed funds and Commonwealth defined benefit schemes) are excluded. Transfer balance cap
From 1 July 2017 a $1.6 million superannuation transfer balance cap will be introduced on the total amount of accumulated superannuation an individual can transfer into pension phase. First home superannuation saver scheme
From 1 July 2017 travel expenses related to inspecting or maintaining a rental property will be no longer allowed.
From 1 July 2017 voluntary contributions up to $15,000 per year and $30,000 in total can be contributed by first homebuyers. The contribution must be within existing concessional and nonconcessional caps. From 1 July 2018 these contributions can then be withdrawn for a first home deposit.
Superannuation
Proceeds of downsizing
Travel Deductions
Catch-up concessional contributions
From 1 July 2017 individuals with a superannuation balance of less than $500,000 can make additional concessional contributions where they have not reached their concessional contributions cap in previous years. Unused amounts accrued from 1 July 2017 can be carried forward for a period of five consecutive years. This will allow taxpayers an opportunity to ‘catch-up’ if they have the means to do so. Concessional contributions cap
From 1 July 2018 to reduce a barrier to downsizing, a taxpayer aged 65 or over can make a non-concessional contribution (NCC) up to $300,000 from the proceeds of selling their home. These NCCs will be in addition to those currently permitted under existing rules and caps and they will be exempt from the existing age test, work test and the $1.6 million balance test for making NCCs. This will apply to sales of a principal residence owned for the past ten or more years. If the house is owned by a couple, both taxpayers will be able to take advantage of this measure for the same home.
From 1 July 2017 the annual cap on concessional superannuation contributions will be lowered to $25,000. Contribution rules
From 1 July 2017, the current restrictions (i.e. the work test) will be removed on people aged 65 to 74 from making voluntary or nonconcessional superannuation contributions. Low income spouse balances
From 1 July 2017 the low income spouse superannuation tax offset eligibility will be widened. The income threshold for the low income spouse will increase from $10,800 to $37,000. The offset is gradually reduced for income above this level and completely phases out at NTEU TAX GUIDE 2017
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The Tax System Who needs to lodge a return? 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 withheld from your salary you will also need to lodge a tax return. Even if you’re not required to lodge a return it is a good idea to notify the ATO that a return is not necessary. Record Keeping As 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. Self-Assessment Australia has a self-assessment taxation system. This means that your return is accepted initially by the Australian Taxation Office (ATO) as truthful. However, the ATO will check the validity of your claims by data matching and auditing. They use this data to: • Provide pre-filling information to taxpayers and their agents to help them correctly complete their income tax return first time. • Identify discrepancies between information reported by taxpayers in their tax returns against details reported by third parties. • Identify particular non-compliant behaviour within selected target groups, or to conduct risk assessments. • Assist in administration of the relevant legislation with other government departments through data exchange. • 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. 4
NTEU TAX GUIDE 2017
• Offer you professional assistance to help you understand and meet your tax obligations. • Accept you can be represented by a person of your choice and get advice about your tax affairs. • Respect your privacy. • Keep your information confidential in accordance with the law. • Give you access to information we hold about you in accordance with the law. • Give you advice and information you can rely on. • Explain to you the decisions we make about your tax affairs. • Respect your right to a review. • Respect your right to make a complaint. • Administering the tax system in a way that minimises your costs of complying. • Be accountable for what we do. Self-Lodgement 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 must be lodged by 31 October. The ATO has the power to fine the taxpayer up to $180 for every 28 days the return is late to a maximum of $900. Interest on any tax payable may also be charged. Our advice is to get it in on time and save the stress and hassle. The return is assessed by the ATO and you are issued with a Notice of Assessment. The Notice of Assessment will summarise your taxable income for the year. It may include a tax refund or an amount payable. 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 of the following year). To avoid penalty however, you must be registered as a client with a tax agent by 31 October. Other advantages of using a Tax Agent 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.
Income In general, income tax is calculated by subtracting allowable deductions from assessable income. Assessable income can be obtained in a variety of ways: Salary & Wage Income 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). Other payments include: • Allowances can be for car, travel or transport, tools, clothing or laundry, dirt, site, risk, meal or entertainment or for qualifications held e.g. a first aid certificate. • Any payment received under sickness or insurance policy for loss of income is usually considered assessable. • Certain lump sum payments in respect of unused annual leave and long service leave are entitled to concessional tax treatment 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 labelled A B C D or E on your payment summary. • Eligible Termination Payment (ETP) is a lump sum payment paid by an employer or a superannuation fund. Some of these payments receive concession tax treatment up to certain limits called caps. Areas include resignation, age retirement, redundancy, dismissal, death of an employee. Government Income Assessable government payments include; • Age pension • Newstart allowance • Youth Allowance • Austudy payment • Parenting payment (partnered) • Partner Allowance • Sickness Allowance • Special benefit • Widow Allowance • Farm household allowance • 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
Investment Income • Rental income when you rent out your property. The rental income must go on the tax return of the taxpayer whose name appears on the title deed of the property. This is most often a 50% spilt between two taxpayers. • Dividend income including dividends paid directly to you, dividends applied under a dividend reinvestment plan, dividends that were dealt with on your behalf and bonus shares that qualify as dividends. • Interest income can include interest the ATO credited tax account with. It also includes money received from financial institution accounts and term deposits. NB If you 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. Other Income Business income may include earnings from your 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. There are certain tests that must be satisfied in order to gain treatment as a business (e.g. the ’business’ must make a consistent profit). Capital Gains income could include any capital gain or capital loss on the disposal of certain assets. Reasons leading to a possible event can include: • An asset you own is lost or destroyed (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. This is a complex area of tax law and we recommend you consult a tax professional.
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Deductions Deductions are allowable expenses or outgoings that have been incurred in earning any assessable income. An expense must be incurred, that is either paid, or definitely committed to be paid, Such as holding the Invoice. You must have written evidence to prove your claims if your total claims exceed $300. Deductions can include: Bank Fees Fees incurred due to having your salary paid directly into a bank account are a claimable expense. Car Expenses Using your car for work purposes can be claimed as a deduction. It does not include travel between work and home. You can claim for travel between two separate workplaces, or between a workplace and a place of business. Method 1 – Cents per kilometre
You can claim up to 5,000 business kilometres per car. The rate of 66c per kilometre is applicable for all cars. You do not need written evidence as such but you need to be able to show how you calculated your claim. Method 2 – Logbook
You claim the business percentage of costs associated with running your car. You need to record odometer readings and you need evidence of all costs except fuel. 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 identifies you as an employee. • A single item of distinctive clothing, such as a jumper or tie, if it is compulsory for you to wear it at work. Generally having a 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 sun protection such as sunscreen, sunglasses and sunhats. n.b. Expenditure on sports clothes such as tracksuits, t-shirts, aerobics clothing, swimming costumes and running shoes is considered conventional clothing and is not an allowable deduction. Donations & Gifts (incl School Building Funds) Donations must meet certain conditions. 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 6
NTEU TAX GUIDE 2017
• Property purchased during the 12 months before making the gift • Listed shares valued at $5,000 or less • Trading stock disposed of outside the ordinary course of business • Cultural gifts Program • Heritage gifts 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 • 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 Contributions to school building funds can also be deductions. The ATO states that a school building fund has the following characteristics: • The fund is a public fund. • The public fund is established and maintained solely for providing money for the acquisition, construction or maintenance of a building. • The building is used, or is to be used, as a school or college, by a government or a public authority, or a non-profit society or association. n.b. A deduction is not allowable for purchasing gifts for other teachers or students: “Teachers may outlay their own money to supply items to students for their own individual needs (e.g. books and uniforms); purchase gifts for students (e.g. Christmas gifts); purchase food and drinks for special occasions (e.g. student birthdays) and replace money lost by students (e.g. money for bus fares and lunch). While employee teachers may feel a moral, personal or social obligation to outlay these expenses, there is no connection between the expenditure incurred by the employee teacher and producing assessable income.” Excursions, School Trips and Camps The trips MUST be related to the curriculum or extra-curricular activities. Factors determining relevance would include the purpose of the trip, the activities undertaken, and the duties of the teacher. For example, a teacher accompanies a class of school students on a day excursion to visit Parliament House as part of the social studies curriculum. The purpose of the trip as well as the activities have a direct relevance to the curriculum therefore, all expenses would be deductible. Supervising students alone is not sufficient to make the expenses 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 engaging in social, classroom and sporting activities. Half of the time is spent in tourist activities. The trip is open to all students and is not part of the curriculum of any particular course at the school. Even though the trip may provide social and cultural benefits to the
students, the expenses incurred by the teacher are not deductible. However, if the trip is not curriculum-related but forms an integral part of the extra-curricular activities and the teacher accompanies students as a representative of the school (e.g. school sporting events or school band competitions) the expenses would be allowable. The deductibility of expenses incurred to inspect a possible excursion venue prior to taking the students depends on the purpose and reasons for undertaking such an inspection; e.g. expenses associated with prior visit of a venue to ensure that it meets safety requirements are allowable. However, if a teacher visits a venue privately then decides that it would make a good excursion venue, the private visit expenses are not claimable.
• pest control • property agent fees or commissions • repairs and maintenance • stationery • telephone • water charges • travel costs to inspect the property. If only part of your property is rented out, these expenses must be apportioned.
Home Office
Expenses incurred in completing training provided by a school, 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. The first $250 of these expenses is not claimable. Such expenses may include: • Textbooks • Student union fees • Stationery • Course fees • Travel expenses • Decline in value of equipment. NB In general, the costs associated with personal motivation seminars are not tax deductible. Whilst they vary from course to course, the ATO’s view is that ‘the material covered is too general to be classed as relating specifically to income-producing activities.’
When you carry out work activities your home office, you can claim the heating, cooling, lighting and cleaning as well as the decline in value of and repairs to your home office furniture and fittings. The ATO has set a fixed rate of 45 cents per hour for these office expenses instead of keeping details of actual costs. Also, the following may be applicable (apportioned for private and work use): • Answering machines • Briefcase • Calculators and electronic organisers • Computers and computer software • Mobile phones , Telephones • Facsimile machines • Pagers • Hiring equipment • Technical or professional publications • Teaching aids 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. 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 – e.g. 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
Self-Education Expenses
Tax Returns 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 advisor. They can include the preparation and lodgement, advice, costs of travel to and from the advisor and obtaining reference works. Teaching aids Items purchased must have a direct and relevant use in carrying out your duties. Examples include: • Pens, pencils, markers/highlighters, stamps, stickers, paints, stationery, posters, maps, laminating. • Storybooks, jigsaws, games, toys used by early childhood, primary school or special education teachers. • Items used in cooking or sewing classes or science experiments. • Prizes purchased to reward achievement and encourage students. • Entrance fees for school excursions. • Whistles and stopwatches used by physical education employee teachers. • Calculators/calculator batteries • Maintaining classroom or school pets. NTEU TAX GUIDE 2017
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Travel Expenses If you have to travel away for work, then certain expenses may be deductible which may include: • air, bus, train, tram and taxi fares • bridge and road tolls • parking • car hire fees • meals • accommodation. If a travel allowance is received and the amount of the claim for expenses incurred is no more than a reasonable amount, substantiation is not required. If the deduction claimed is more than the reasonable amount (rates outlined by the ATO depending on travel location) the whole claim must be substantiated, not just the excess over the reasonable amount. If the dominant purpose in incurring the cost is the attendance at the conference or seminar then the existence of any private activity would be merely incidental and the cost would be fully deductible. If the attendance at the conference or seminar is only incidental to a private activity (e.g. a holiday) then only the costs directly attributable to the conference or seminar is allowable deduction. The cost of accommodation, meals and travel directly relating to the private activity is not allowable.
Rebates and 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 and private health insurance. This is a complicated area of tax. Seek professional guidance. Below is a basic outline of the major rebates. Invalid Carer Tax Offset If you maintained a dependent invalid relative you may be entitled to a tax offset depending on your adjusted taxable income. Low Income Tax Offset Low income earners can have their tax offset by a maximum of $445 if their taxable income does not exceed $37,000. Private Health Insurance Rebate If you have private health insurance, you are entitled to a tax rebate. Most people claim this throughout the year in the form of a premium reduction. Senior Australians and Pensioners Tax Offset The pensioner tax offset and the senior Australians tax offset have been combined to form the seniors and pensioners tax offset (SAPTO).
Union and Professional Association Fees
Zone Tax Offset
You can claim for the cost of being a member of a Union or Association. See below for where to find your NTEU Tax Statement.
If you live and work in a remote area you may be entitled to the zone offset.
Where to find your NTEU Tax Statement If you pay your fees via direct debit, credit card or invoice
Statement can be accessed from your online Member Tools page. Login in at www.nteu.org.au/members and click on Print Tax Statements in the Payments box. 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 regarding this. TAFE members and ex-members
Tax statements will be sent to your home address in early July.
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NTEU TAX GUIDE 2017
Do your 2017 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 $99 (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... NTEU TAX GUIDE 2017
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Deductions
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 link between the course and your current employment)
Course Name
D5
Other work expenses
$
Institution Course Fees
$
Textbooks
$
Travel
$
Bank Fees
$
Books and Journals
$
Computing (< $300)
$
Computing (> $300)
$
Purchase date Description
Internet (monthly cost)
$
% work use
Memberships
$
Phone (monthly Cost)
$
Seminars
$
Stationery
$
Subscriptions
$
Sun Protection (Hat, sunglasses, sunscreen)
$
Teaching aids, resources
$
Teacher registration
$
Union Fees
$
Working with Children check
$
Or estimate km
Home Office (Estimate of hours spent working from home each week)
D9
Donations
$
D10
Tax Affairs (Cost of getting your tax done last year)
$
D15
Other
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NTEU TAX GUIDE 2017
Income Protection Insurance
$
% work use