moneypenny20

We've got two angels in High School and so have some reclaiming of funds to do including the purchase of a laptop this year. Hubby works full time and I work part time so earn a fair amount less (although he earns sod all but that's by the by) but obviously pay far less tax. Would it pay for me to claim or him or would it make no difference?

I assume it doesn't matter but it just occurred to me when I was thinking about our returns last year and he got the $900 but I didn't because my A+G-O equalled sod all (some sort of equation like that anyway ). My thought processes probably don't make sense to the tax bods but it's kind of clear in my head

Dorothy

We get a tax agent to do ours, but I would think it would make sense that the lower earner would claim as much as possible in order to maximise how much you'll get back.

Probably about as clear as mud, but I know what I mean.

ABCDiamond

Actually it is totally understandable, but I wonder if my answer will be understandable....

As the Education Tax claim is is a lump sum claim rather than a deduction set against income, it really makes no difference who claims it, as the $ figure will be the same.

I do wonder if the claim should be made by the person that claims the FTB though, as it is dependent upon being FTB eligible.

If one person is paying a higher tax rate, any normal deduction claims against income would be done on that person, to get the higher % offset.

moneypenny20

Unfortunately neither of us are paying a higher rate tax but I hadn't thought about the FTB bit. That's in His name so I guess I'll put it all against his return.

So are you saying Dorothy was wrong with her comment or would that still stand if neither of us pay a higher rate of tax?

ABCDiamond

A person earning under $34,000 only pays tax at 15%
but any income above $34,000 is at 30%

If you claim an expense of $100, the lower income earner would get back $15, but a person on over $34,000 would get back $30 (or more, if they go above $80,000 income)

Then of course, if you were to earn under $14,000 you would pay no tax anyway, so if you claimed that $100, you would get no 'extra' back, as you would be getting it all back anyway.

However, with rebates such as the Education one, you can get that even without paying any tax to claim against.

Clear as Mud ?

moneypenny20

Think so I'll keep a note of this for when I actually sit down and do the returns. Hopefully it will be a bit more translucent by then

Thank you.

carlap

On a similar theme, does interest from joint bank accounts have to be split, or can one person have it all loaded. We are a one income family, so child allowance (FTB?) is tested against the 'non' earner who can earn up to about $9k before benefit is reduced. With UK and Oz interest all or most of this could go on the non earner up to these limits, thus reducing the liability on the earner.

Getting a bit risky I guess. We will probably get a tax agent, but I want to run through etax first for a rough idea.

ABCDiamond

You can 'play' with e-tax, using different scenarios, before choosing which final options to go with.

NickyC

Interest on joint accounts is supposed to be split 50/50.

Your case is a excellent reason why your joint savings should all be in your name.

ozhappy981

The person who gets FTB is the only one who can claim the Education Tax Refund. It's not optional. Sorry, guys.

ozhappy981

Yep, interest from joint accounts has to be split 50:50.

And don't think that like in the UK you can just hide this from the Oz Taxman! The banks here report to the ATO (it's mandatory). So the ATO know what bank accounts you have, whether the account is joint, and how much interest you earned...

moneypenny20

No worries. Haven't done either of them yet so it's all good. Thanks

Dorothy

That's why we have a tax agent do ours. It's so different than what we're used to. With Revenue Canada the lower income person usually claims all the expenses they can which lowers their tax payable and results in a larger refund, so I assumed (stupidly) that it would be similar here.

nevsy

Hi folks

Being here on a 457 visa I'm the main bread winner my partner works part time when we go to do our tax returns should we get her to claim the school fees etc as she earns a lot less.

Also what all can I claim for?

Thanks in advance.


Nev

ozhappy981

Nobody can claim school fees . The Education Tax Refund is for a number of other things .... BUT, as you are here on a 457 visa, you cannot claim the Education Tax Refund (because being on a 457 visa, you can't get FTB which is a pre-requisite for claiming the ETR).