NTEU Tax Guide 2014

www.nteu.org.au/tax

Tax Guide2014

Budget 2014

The Federal Budget was brought down on 15 May 2014. The key initiatives were as follows.

Budget repair

In order to build a strong and prosperous economy the budget is part of the Government’s Economic Action Strategy. Projected surpluses to be over one per cent of GDP by 2024-25, taking into ac-count future tax relief.

Contribution from all Australians

• Temporary Budget Repair Levy of 2% on incomes over $180,000 for three years from 1 July 2014 to 30 June 2017. (FBT rate will be increased from 47% to 49% from 1 April 2015 until 31 March 2017 as well).

• Work for the Dole changes which will require young people to be earning, learning or partici-pating in the scheme.

• Tightening eligibility for the Family Tax Benefit, Part B.

• From September 2017 the Pension will be indexed to the CPI instead of wages.

• Increasing the pension age to 67 by 1 July 2023, and then to 70 by 1 July 2035.

• Temporarily holding Indexation of many payments including thresholds for Family Tax Benefit, Newstart, Medicare Levy Surcharge, Private Health Insurance Rebate and most Medicare Benefits Schedule fees.

Building Australia’s Future

• Creating Infrastructure Growth Package which will boost investment by Commonwealth, State and local governments and the private sector, to over $125 billion by 2019-20.

• Higher education reforms, including expanded access to higher education and removing fee caps on Commonwealth-supported places for new students from 1 January 2016.

• Establishing the $20 billion Medical Research Future Fund.

• The Restart program will offer incentives to businesses which employ Australians over the age of 50. Eligible employers could receive up to $10,000 over a two year period if they hire a full-time mature age job seeker who was previ-ously unemployed for a minimum of 6 months.

• The repair of Defence funding and re-invest-ment in Defence capability.

• Consolidating operational border protection services into the Australian Border Force.

Contents

Budget 2014 ...................................2Budget repair 2Contribution from all Australians 2Building Australia’s Future 2

ATO Focus 2014 ........................... 1Work-related Deductions (Computer, Internet, Phone) 1Work-related Deductions (Travel Expenses) 1Compliance Activities 1

Changes for 2014 ....................... 1Change of Name 1Personal Contact Details 1Electronic Refunds 1Tax receipt 1Self-education Expenses 1Schoolkids Bonus 1Net Medical Expenses Tax Offset 1Private Health Insurance Rebate Adjustment 1Lifetime Health Cover Loading 1Private Health Insurance Rebate and Medicare Levy Surcharge 1Income Test Thresholds for 2013-2014 1Income Tax Rates (Residents) 2013–14 1

Changes for 2015 ........................2Medicare Levy 2Dependant Spouse Tax Offset 2Mature Age Worker Tax Offset 2Family Payments System 2

The Tax System ..........................2Self-Assessment 2Who needs to lodge a return? 2

Record Keeping 2Self-Lodgement 2Using a Tax Agent 2

Income ............................................3Salary and Wage Income 3Investment Income 3Government Income 3Other Income 3Bank Fees 3Clothing 3Donations and Gifts (including School Building Funds) 3Excursions, School Trips and Camps 4Home Office 4Insurance 4Motor Vehicle Expenses 4Self- Education Expenses 4Tax Returns 5Teaching aids 5Travel Expenses 5Union and Professional Association Fees 5Rental Property Expenses 5

Rebates and Offsets .................5Invalid Relative Tax Offset 5Low Income Tax Offset 5Parent or Spouse’s Parent Tax Offset 5Private Health Insurance Rebate 5Senior Australians and Pensioners Tax Offset 5Zone Tax Offset 5

Where to find your NTEU Tax Statement .............................5

Do your 2014 tax NOW! ..........6

Questionnaire .............................7

NTEU Tax Guide 2014, Published by NTEU ©2014. Written by Teacher Tax. 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.

NSW & NationalPO Box 314, Bowral NSW 2576Ph: (02) 8006 5020 Fax: (02) 4210 8682 (central fax system)[email protected] www.teachertax.com.auVictoria Ph: (03) 9014 9590WA Ph: (08) 6102 0560

NTEU National OfficePO Box 1323, South Melbourne VIC 3205Ph: (03) 9254 1910 Fax: (03) 9254 [email protected] www.nteu.org.auBranch & Divisions: www.nteu.org.au/branches

NTEU TAX GUIDE 2014 1

ATO Focus 2014

Work-related Deductions (Computer, Internet, Phone)

Usually the ATO focuses on individual occupations but this year individuals who claim a tax deduc-tion for using their computer, mobile phone or other electronic device will be in focus.This will impact nearly every occupation and taxpayer in Australia. Most jobs including teach-ing require the use of a phone, computer or other electronic device out of hours. Deductions for electronic devices are taking a fast-growing share of total work-related expenses. It is very impor-tant the taxpayer understands the distinction between work-related and personal use expenses and have evidence to substantiate their claim. The ATO can look at every single tax return to isolate unusual or excessive claims.

Work-related Deductions (Travel Expenses)

The ATO is also focusing on work-related claims around travel expenses, and people who transfer bulky tools and equipment between home and work.

Compliance Activities

Focus will be on the following areas:• Individuals who fail to declare income or make

incorrect claims for deductions and benefits will be under scrutiny. Focus will be on correct reporting by wealthy individuals; the use of complex business structures and tax planning schemes.

• Employers fringe benefits tax reporting and PAYG withholding reporting.

• Large and multinational businesses that shift profits offshore or avoid tax obligations. Medi-um-sized businesses (trusts, partnerships and entities within groups) will focus on securing outstanding lodgments, detecting all income, assets and any compliance irregularities. Small businesses focus will be early intervention to help them meet their obligations.

• Goods and Services Tax - Focus on the integrity of business systems to determine GST, the integrity of GST refunds, correct reporting of GST on property and attempts to evade GST.

• Superannuation - Focus on improving Super-Seeker, reuniting people with their super and ensuring the new data and payment standards for electronic rollovers and contributions are implemented successfully.

• Tax Professionals practice management and risk differentiation.

Changes for 2014

Change of Name

If you have changed your name from your last lodged tax return, you will need to update with the ATO before your next tax return is lodged. In previous years, notification on the current tax return was enough. Now, you or your agent will need to phone through the change of name, by quoting details from an ‘identity’ document that will then be verified.

Personal Contact Details

The 2014 tax return now includes additional fields for an email address and mobile phone number, allowing the ATO to contact you about your tax and superannuation affairs. If a tax practitioner is listed as your nominated representative, the ATO will continue to contact your agent first.

Electronic Refunds

Most tax returns with an estimated refund now require Australian financial institution account details to be entered when lodging electronically.

Tax receipt

From 1 July 2014, taxpayers will receive a tax receipt as part of the annual income tax return process. The tax receipt provides a breakdown of how the taxpayer’s tax has contributed towards government expenditure. The tax receipt will be distributed with your Notice of Assessment and will only be provided for 2013–14 onwards.

Self-education Expenses

The government announced on 6 November 2013 that it will not proceed with the previous ruling to introduce a $2,000 cap on the amount you can deduct for work-related self-education expenses.

Schoolkids Bonus

Payment of future instalments of the Schoolkids Bonus, including for July 2014, will depend on when the legislation is passed by Parliament that will end the bonus.

Net Medical Expenses Tax Offset

Eligibility for this offset in 2014 requires that you claimed it in your 2013 tax return. Similarly, to be eligible to claim it in 2015 you must have claimed it in 2014. 2015 is the final year this offset will be allowed unless your medical expenses relate to disability aids, attendant care and aged care. Those expenses can be claimed until 30 June 2019.

Private Health Insurance Rebate Adjustment

From 1 April 2014, rebate percentages are adjusted annually by a rebate adjustment factor (average of the increase in CPI and the premium price increase from insurers). This means a taxpay-ers rebate before April1 will be different to the rebate after April 1. The family income threshold is increased by $1,500 for each dependent after the first child.

Lifetime Health Cover Loading

From 1 July 2013, the rebate will also be calcu-lated on the premium minus any Lifetime Health Cover loading (a penalty to individuals who have not maintained PHI from the year they turned 31). Therefore, the rebate may be calculated on an amount less than the total cost of the policy, reducing the amount of rebate you receive. These changes will be automatically applied to your policy.

Private Health Insurance Rebate and Medicare Levy Surcharge

The private health insurance rebate and Medicare levy surcharge are income tested against the income thresholds in the table below. From 1 July 2015 these thresholds will be frozen for 3 years.

Income Tax Rates (Residents) 2013–14

Taxable income Tax Rate$0 - $18,200 0$18,201 - $37,000

19c for each $1 over $18,200

$37,001 - $80,000

$3,572 plus 32.5c for each $1 over $37,000

$80,001 - $180,000

$17,547 plus 37c for each $1 over $80,000

$180,001+ $54,547 plus 45c for each $1 over $180,000

Income Test Thresholds for 2013-2014

Base Tier Tier 1 Tier 2 Tier 3Singles $88,000

or less$88,001-$102,000

$102,001-$136,000

$136,001 or more

Families $176,000 or less

$176,001-$204,000

$204,001-$272,000

$272,001 or more

Private Health Insurance Rebate premiums paid to 31 March 2014

Under 65yr 30% 20% 10% 0%65-69yr 35% 25% 15% 0%70yr + 40% 30% 20% 0%Private Health Insurance Rebate premiums paid after 1 April 2014

Under 65yr 29.040% 19.360% 9.680% 0%65-69yr 33.880% 24.200% 14.520% 0%70yr + 38.720% 29.040% 19.360% 0%Medicare levy surcharge

Rates 0.0% 1.0% 1.25% 1.5%

2 NTEU TAX GUIDE 2014

Changes for 2015and Beyond

Medicare Levy

From 1 July 2014 the Medicare levy will rise from 1.5% to 2% which will impact your 2015 tax return.

Dependant Spouse Tax Offset

From 1 July 2014 this offset will be abolished. This offset is currently limited to those born before 1 July 1952.

Mature Age Worker Tax Offset

From 1 July 2014 this offset will be abolished. This offset is currently limited to those born before 1 July 1957. Savings will be redirected to the Restart program (an incentive to Employers to support mature age job seekers).

Family Payments System

Family Tax Benefit (FTB)

From 1 July 2014 the current FTB payment rates will be on hold for 2 years. Indexation of the maximum and base rates of the FTB Part A, and the rate of the FTB Part B will be paused until 1 July 2016.

FTB Part B

From 1 July 2015 the FTB Part B eligibility thresh-old will reduce from $150,000 to $100,000 per annum. Also, FTB Part B will be limited to families whose youngest child is younger than 6 years of age. Transitionally, families with a youngest child aged 6 and over on June 30, 2015 will remain eligible for a further two years.

Large Family Supplement

From 1 July 2015 the FTB Part A large family supplement will be limited to families with four or more children.

FTB allowance for single parents

From 1 July 2015 from the point they become ineligible for FTB Part B, the government will provide $750 for each child aged between 6 and 12 years old in an eligible family.

FTB Part A per child add-on

From 1 July 2015 the FTB Part A per child add-on to the higher income free threshold for each ad-ditional child will be removed.

FTB end-of-year supplements

From 1 July 2015 indexation will be removed and FTB end-of-year supplements will retain their original values.

The Tax System

Self-Assessment

Australia has a self-assessment taxation system. This means that your return is accepted initially by the Australian Taxation Office 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 re-ported 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 legisla-tion 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.• 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 accor-

dance 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.

Who needs to lodge a return?

If you have earned income over $18,200 in the 2014 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 haven’t been employed, you may have been credited bank interest and paid withholding tax. Even if you’re not required to lodge a return, in some cases, you need to advise the ATO by filling out the prescribed Non Lodge-ment Advice.

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-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 $110 for every 28 days the return is late to a maximum of $550. 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.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 2014 3

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 and Wage Income

Salary and wages are the main forms of pay-ments 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 superannua-tion fund. Some of these payments receive con-cession tax treatment up to certain limits called caps. Areas include resignation, age retirement, redundancy, dismissal, death of an employee.

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 divi-dend 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.

Government Income

Can include:• Age pension• Bereavement allowance• Carer payment• Disability support pension • Education entry payment• Parenting payment(single)• Widow B pension• Wife pension and either you or your partner was

of age-pension age• Age service pension• Income support supplement• Defence Force Income support allowance• Invalidity service pension if you have reached

age-pension age• Partner service pension• Newstart allowance• Youth allowance• Austudy payment• Parenting payment (partnered)• Partner allowance• Sickness allowance• Special benefit• Widow allowance• Exceptional circumstances relief payment • Interim income support payment• ABSTUDY living allowance• Payment under the Veterans’ Children Education

Scheme• Payment under the Military Rehabilitation and

Compensation Act• CDEP income support component.

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 satis-fied 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 recom-mend you consult a tax professional.

Deductions

Deductions are allowable expenses or outgoings that have been incurred in earning any assess-able 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 di-rectly into a bank account are a claimable expense.

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 main-

taining 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 conven-tional clothing and is not an allowable deduction.

Donations and Gifts (including 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 – money

4 NTEU TAX GUIDE 2014

• Property < 12 months – 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 disposed 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 alter-

native to an increase in school fees.• Payments where the person has an understand-

ing 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 author-ity, or a non-profit society or association.

NB 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 Parlia-ment 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. E.g. 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 deduct-ible. 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, the expenses would be allowable, e.g. school related sporting events or school band competitions. 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. the expenses associated with the 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.

Home Office

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 34 cents per hour for these office expenses instead of keeping details of actual costs. Also, the following may be applicable (appor-tioned 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.

Motor Vehicle Expenses

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

places.• 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.

Method 1 – Cents per km.

This is the most common method, allowing a claim of up to 5000 business km for each car. The table below shows the applicable rate, depending on your car’s engine capacity.The other three methods are:

Method 2

12% of original value

Method 3

One-third of actual expenses

Method 4

LogbookIt is suggested that you seek the advice of a Tax Agent prior to selecting a method.

Self- Education Expenses

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.

Engine capacity (ordinary car)

Engine capacity (rotary engine car)

Rate (cents per km)

1,600cc / 1.6 litre or less 800cc / 0.8 litre or less 631,601–2,600cc / 1.6–2.6 litre

801–1,300cc / 0.801–1.3 litre

74

2,601cc / 2.601 litre or more

1,301cc / 1.301 litre or more

75

NTEU TAX GUIDE 2014 5

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.’

Tax Returns

The cost of managing your tax affairs is a tax de-ductible 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

The 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 sci-ence 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.

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.

Union and Professional Association Fees

You can claim for the cost of being a member of a Union or Association. See the box below for where to find your NTEU Tax Statement.

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• 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.

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 excep-tion 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 Relative 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.

Parent or Spouse’s Parent Tax Offset

If you maintained your parent, your spouse’s par-ent you may be entitled to a tax offset depending on your adjusted taxable income.

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).

Zone Tax Offset

If you live and work in a remote area you may be entitled to the zone offset.

Where to find your NTEU Tax StatementIf 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.

6 NTEU TAX GUIDE 2014

Do your 2014 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:

Email

Simply send your details to [email protected]

By Phone

Call us on (02) 8006 5020 or contact our nearest office and discuss your details. We can then guide you through our easy step by step process.

By Post

Use this form and questionnaire and post to:Teacher Tax, PO BOX 314, Bowral NSW 2576

The fee is $99 for NTEU members for a standard individual tax return.

AUTHORITY TO ACT AS YOUR AGENT

Personal Details

Signed Client ____________________________________________________________________

Date __________________________________________

Proceed to questionnaire...

First Name

Middle Name(s)

Last Name

D.O.B.

T.F.N.

Street Address

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NTEU TAX GUIDE 2014 7

QUESTION DETAILS PROOF REQUIRED Who is your employer? Include any

business who has given you a PAYG Summary.

PAYG Payment Summary

D1 Were you required to use your vehicle for work purposes?

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.

#

D4 Have you incurred a self education expense? (There MUST be a direct connection between your self-education expense and your work as a teacher)

YES / NO Please give brief description of course. #

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 #

# Expense must be able to be proved if audited

Questionnaire

8 NTEU TAX GUIDE 2014

QUESTION DETAILS PROOF REQUIRED

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 / NO This is usually a pro rata expense - apportioned for 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 #D16 Work-related telephone calls. YES / NO #D17 Union and professional association fees

(usually listed on your group certificate – 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 Do you receive any Government pensions or allowances incl FTB?

YES / NO Centrelink Statement of Benefits - including Pensions, Job Start, etc

Q3 Do you have Private Health OR Income Protection Insurance (please specify)?

YES / NO Private Health Insurance Statement

Q4 Have you sold an investment property this year?

YES / NO Purchase details and settlement details

Q5A Do you own shares? YES / NO Dividend Statements Q5B Have you sold any shares this year? YES / NO Sales CertificatesQ6 Do you have another source of income (e.g.

second job/business)?YES / NO PAYG Payment Summary

Q7 Have you been charged any deductible interest? (e.g. investment loan, tax debt)

YES / NO Bank Statements

Q8 Have you made any personal superannuation contributions on behalf of yourself or a spouse?

YES / NO Superannuation Statement

Q10 Do you have dependant children? (please indicate how many)

YES / NO

Q11 Do you have (or a share in) an investment property?

YES / NO If YES, please provide details on a separate sheet. We will call you at a convenient time to discuss specific details.

# Expense must be able to be proved if audited Liability Limited by a scheme approved under professional standards legislation.