blackcab

Tax Offsets

Hi i am working two jobs, one 24 hours permanent using my tax allowance, the other 16 hours not using my tax allowance. The tax paid on my permanent job is too much, the ato owe me $1000, but the tax paid on my second job is not enough, i owe the ato $1400. So i owe the ato $400 all in all. I get the public transport to work, i wear a uniform, shoes etc, i do my own tax calcs, i eat dinner at work. What i am asking is there anything i can use to offset any tax owed. I am guessing, this is just a made up scenario, but if i bought a pair of shoes for work, they cost me $1000, then i could deduct that $1000 dollars from the money i earnt gross annually, so i would not pay tax on that $1000. So in effect if i had been taxed at 20% across the board, on all gross earnings annually, i would have saved myself $200 tax owed for buying the shoes as i use them for work? Has anyone got any suggestions what i could use at legitimate tax offsets in this way? Thanks

Alan Collett

Yes, a tax deduction doesn't reduce your tax bill by the amount of the expense.

It reduces your tax bill by the amount of the expense x your marginal rate of income tax.

Best regards.

ABCD......

Cost of uniform, unless it is free.
Cost of "specific" type of shoes if needed.
Laundry costs for washing your uniform, and you do wash it separately from all other clothes, don't you...
Claiming meal allowance, IF applicable due to overtime working, and having to pay for a meal.

Probably more, but it depends on your job and situation.

blackcab

Thankyou ABCD, i just want to reduce my tax bill by the $400 bucks difference. I wash three uniforms a week, bought two pairs of shoes in a year. I guess my uniforms wash would equate to at least $10 bucks a week. Shoes, $100 bucks for a year, no meal allowance, no overtime. I might be able to offset $600 bucks maybe. Is there any limit, when exceded on claiming where you need all reciepts. I ask because if you are doing your own washing/ironing?

Thanks

ABCD......

Substantiation
To substantiate the deduction your client will be asked to keep the following records:

• list of all items claimed for work-related clothing expenses and receipts or other documentary evidence for each item, including any dry cleaning expenses for those items
• for laundry expenses not exceeding $150, an explanation of the basis for working out the claim
• if your client's total claim for work-related expenses exceeds $300 (not including car, meal allowance, award transport payments allowance and travel expenses), written evidence such as diary entries and receipts for laundry expenses greater than $150.

http://www.ato.gov.au/Tax-profession...ses-(Item-D3)/

If you did washing, drying or ironing yourself, you can use a reasonable basis to calculate the amount, such as $1 per load for work-related clothing, or 50 cents per load if other laundry items were included
http://www.ato.gov.au/Individuals/Ta...ning-expenses/

Bermudashorts

Washing three uniforms a week cannot possibly cost $10!

For heavens sake just pay the $400!

ABCD......

That is very un-Australian

It is a national pass-time in July August to see what we can get back

Most people think it is compulsory to find any way to cut tax... Having been deprived of that ability in the UK for so long, it is great fun to do it here

The motoring deduction is a good one also; on the way to work, you have to do something for the employer, and you claim part of the trip mileage. Between 63c and 75c per km, depending on your car.
A claim of 11 km a week, for example, gets almost $400 back...

blackcab

Thanks again, $300 bucks it is for me then, i can easily substantiate the $300 over a year, doubt the ATO will either question or ask. If they do, well two pairs of shoes, and washing three uniforms a week, buy a pair of tights a week, that covers the $300 bucks. Not a cent more will i give the tax man, i work too hard for my money. Thanks ABCD.

spouse of scouse

Buy a pair of tights a week? Only if your job specifically states that tights must be worn as part of your uniform!

This question is about expenses you incurred as an employee for work-related:
protective clothing
uniforms
occupation-specific clothing, and
laundering and dry-cleaning of clothing listed above.

You can claim the cost of a work uniform that is distinctive (such as one that has your employer's logo permanently attached to it) and it must be either:
a non-compulsory uniform that your employer has registered with AusIndustry (check with your employer if you are not sure), or
a compulsory uniform that can be a set of clothing or a single item that identifies you as an employee of an organisation. There must be a strictly enforced policy making it compulsory to wear that clothing at work. Items may include shoes, stockings, socks and jumpers where they are an essential part of a distinctive compulsory uniform and the colour, style and type are specified in your employer's policy.

You can also claim the cost of:
occupation-specific clothing which allows people to easily recognise that occupation (such as the checked pants a chef wears when working) and which are not for everyday use
protective clothing and footwear to protect you from the risk of illness or injury, or to prevent damage to your ordinary clothes, caused by your work or work environment. Items may include fire-resistant clothing, sun protection clothing, safety-coloured vests, non-slip nurse's shoes, steel-capped boots, gloves, overalls, aprons, and heavy duty shirts and trousers (but not jeans). You can claim the cost of protective equipment such as hard hats and safety glasses at item D5.

You can also claim the cost of renting, repairing and cleaning any of the above work-related clothing.

You cannot claim the cost of purchasing or cleaning plain uniforms or clothes, such as black trousers, white shirts, suits or stockings, even if your employer requires you to wear them.

Pollyana

How on earth can you claim the cost of buying tights?

ABCD......

In the country where Tax-deductible consumables include
Is nothing off limits ??

Pollyana

Its all very subjective though and I have to say personally speaking a lot of it seems to be down to thinking "what can I get away with" - along the same lines as Aussie traditions like booking a sickie a week in advance.

I can't claim for stationery, for instance. The fact that our office has nothing but half a dozen broken biros and we have no notebooks but have to use scrap paper, due to a zero budgeting newman-induced-situation is beside the point. The government is supposed to provide stationery, therefore I can't claim any of the money I spend providing myself with the basics to do my job. That leaves me a lot out of pocket but I HAVE to buy the stuff to do my job. I need a mobile so work can call me if they want to change my shift - but its not a work mobile and there is no actual requirement as part of the job to carry one - therefore I am advised I cannot claim for any of that either.
And yes, I also have to wear shoes and socks (not girly enough for tights) and non-compulsory uniform. But the only thing I can claim for is 50 cents a week for laundry for my shirts. Thats the only thing on my entire tax return every year that I can legitimately claim.

The system stinks, its so open to abuse. Now I'll get off my soapbox and go pay this years tax bill - one income, only the laundry deduction, the ATO are now waiting for me to pay this years $600 bill - again.

ABCD......

Having done Tax in both UK and Australia, I can say that there is a big difference, although only in what CAN be claimed. I dealt with the self employed in the UK, and they were exactly the same as they are in Australia, claim the maximum + more... !

I always wondered what my mum would have thought of me, she worked for the Tax Office, I was on the other side

It does sound like you will be better off when (if) they change the system and give everyone a fixed deduction.

irishbloo

Surely he can claim,if he is a bank robber.

Pollyana