Income

Tax law describes income that is assessed as all amounts that are ordinary income except that which is specifically exempted. Everything that is not exempt income generally forms income and can be referenced at the ATO’s web site
https://www.ato.gov.au/individuals/income-and-deductions/income-you-must-declare/amounts-not-included-as-income/

Deductions

Tax laws are complicated but I like to suggest a simplified general rule for
deductions.
          Step 1 Did you purchase something that relates to your income?
          If YES
          Step 2 Was it private, capital or domestic?
          If No then you have a chance at making a claim.
          (Bring the evidence to us and we check that you can make the claim)

Common Work Deductions

Tax law is complicated and to help you with this we have provided the guidance below that you should use with the recommendation that you also seek help from us with these claims at the time that we are preparing you tax return.

Work related car expenses

Claimed if you use your own car for your job examples include:-
        >    Carrying bulky tools and there is no storage at your work
        >    Travel to a conference
        >    Deliveries or collect materials
        >    Travel between two jobs (Not from home)
        >    Perform itinerant work.

Tip’s
        >     If claimed correctly this is one of the best deductions.
        >     There are two methods for cars “log book” & “cents per km”
        >    
The tip here is to keep a logbook.
               This can be completed by and app like mile catcher
               https://milecatcher.com/

        >     You must take down the odometer reading at the start of your logbook
        >     You must also take the odometer reading at the start of the financial year.
        >     You generally can’t claim travel between work and home.
        >     You can’t claim if your vehicle has been salary sacrificed.

Travel Expenses

       >      You can generally claim meals, accommodation and incidentals if you travel and stay overnight.
       >      Claim the cost of a borrowed vehicle or other vehicle (truck, motor bike etc).
       >      Air, bus, train, tram & ride share.
       >      Tolls, car park and car hire.

Clothing and Laundry

       Protective clothing
       This is clothing that protects you from above average risk while you are at work.
       Examples of this are:-
         Steel capped boots, non-slip nurses shoes, overalls and white coats for doctors, heavy duty trousers and shirts,
         clothes that have a high density weave which gives a UV rating to protect users from the sun while they are working outdoors.

      Compulsory Uniform
      Clothing that distinctly identifies the employers organization.
      Three conditions to be satisfied are the employer has an express policy, all employees in that class must wear the uniform and the policy must be enforced.

       Non-Compulsory Uniform
       Uniform that the employee wears that is registered with AusIndustry i.e. has a logo.

       Occupation specific
       Clothing that relates to you to your trade i.e. chefs checked pants

       Conventional clothing
       Simply not deductible

       Laundry & Dry Cleaning
       You my claim if it relates to the laundry of your deductible uniform as listed above.
       You may claim up to $150 without written evidence only if all other work related expenses are less then $300. The reasonable amount to claim is $1 per load.
       Tip A safe way to make this claim is to keep your laundry receipts.

 Self Education

       These are related to a course of education provided from a school, college or university. It is used to gain a formal qualification.
       You can only claim this if you are currently employed and what you are studying relates to your employment to maintain and improve that skill.
       We usually have to assess this on a case by case and examples are:-
       Business coaching and business development courses,
       tuition fees under fee-help, os-help, vet fee-help, cost of text books, student union fees, transport between home and the institution.
       Tip You can not make a claim for course fees or associated expenses if they are subsidized with HECS-help, HELP, SFSS, SSL or TSL.

Other work related deductions

       Below are a few ideas for some deductions.  
         >     Home Office
         >     Tools
         >     Brief case, carry bags, suitcases & handbags
         >     Calculators, computers
         >     Conferences, seminars
         >     First aid course, Protective equipment, Reference material, Stationery
         >     Telephone and internet

       The link to the ATO web site is excellent for identifying deductions for your specific industry and occupation.
       https://www.ato.gov.au/Individuals/Income-and-deductions/Occupation-and-industry-specific-guides/

Substantiation

Substantiation means that you need to have proof that you paid for the item that you are claiming as a deduction.

Threshold
       If the total of all the work related expenses is $300 or less then you may not have to substantiate your claim (Although you must have spent the money on deductions).
       If your deductions are over $300 you must look to substantiate your claim.

       Tip  You can only claim deductions for expenses that relate to taxable income. They must be paid in the financial year that they are paid.

Personal Tax Rates

These tax rates apply to individuals who are Australian residents for tax purposes. Please look at this updated tax table.

Taxable Income Tax on this income
0 – $18,000 NIL
$18,201 – $37,000 19c for each $1 over
$18,200
$37,001 – $90,000 $3,572 plus 32.5c for each
$1 over $37,000
$90,001 – $180,000 $20,797 plus 37c for each
$1 over $90,000
$180,000 and over $54,097 plus 45c for each
$1 over $180,000
The above does not include
the Medicare levy of 2%
The above rates include
changes announced in the 2018-19 Federal Budget.

Individual Tax Return Checklist
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