Sydney Taxation Services (NSW) Pty Ltd

Construction tradespeople – what expenses can I claim?

Sydney Taxation Services — Sat, 19 Mar 2011 01:21:13 +0000

This summary outlines some of the deductions you can and cannot claim as an employee tradesperson in the construction industry.

Car expenses – for vehicles under one tonne

You cannot claim deductions for your car expenses from home to work even if:

you travel outside normal business hours
you are on call
you did minor tasks on the way to work or home
you live a long distance from work, or there is no public transport available.

You can claim deductions for your car expenses for travel directly from one work site to the next.

You can claim deductions for your car expenses from home to work if you carry bulky tools and equipment that you are required to use at work, as long as there is no secure area provided to leave them on site.

There are four methods of calculating deductions for car expenses:

cents per kilometre
12% of original value
one-third of actual expenses,
logbook.

You can use the method that gives you the greatest deduction.

Travel expenses – for vehicles over one tonne and other travel expenses

If you are eligible to claim deductions for car expenses and your vehicle is over one tonne, you cannot use any of the four methods outlined above to calculate your deductions for car expenses.

You can only claim your actual expenses.

If you are making a claim for travel expenses where you are away from home for six or more nights in a row, you may need to keep a travel record that shows the dates, places, times, duration and nature of the work activities that you have undertaken.

Clothing

You cannot claim a deduction for the cost of conventional clothing such as jeans and work shirts.

You can claim the cost of compulsory uniforms and protective clothing such as overalls and steel-capped boots.

However, you cannot claim a deduction if these items have been provided free of charge by your employer.

You can claim deductions for expenses for the laundering of compulsory uniforms and protective clothing.

Self-education expenses

You can claim deductions for your education expenses at university or TAFE if they relate to your current work and are not reimbursed.

Example

David is studying carpentry while working as a timber salesperson. He is offered a new position supervising the assembly of timber frames on an understanding that he will continue his studies. David cannot claim deductions for his study expenses while employed as a salesperson. He can claim deductions for his study expenses while employed as a framing supervisor.

You cannot claim a deduction for a pre-vocational course such as a pre-apprenticeship in building construction.

You cannot claim a deduction for the initial cost of obtaining your state regulatory body work permits or certificates. These include ‘cards’ required to work on building sites, occupational health and safety certificates or other regulatory permits.

You can claim a deduction for any renewal fees for regulatory permits, certificates, or ‘cards’ as discussed above. You claim these at item D5.

Tools and equipment

You can claim an immediate deduction for tools or equipment that you use for your work and the cost does not exceed $300. If they cost more than $300, you can claim a deduction for only the decline in value (depreciation).

Union fees

You can claim a deduction for union fees. However, you cannot claim a deduction for worker entitlement fund contributions and other similar charges outlined in your union fee statement.

Phone expenses

You can claim a deduction for the cost of work-related phone calls.

You can claim a deduction for your phone rental if you can show you were on call or were regularly required to phone your employer while you were away from your workplace. You will need to apportion the rental cost between your work and private usage.

Borrowing expenses for Investment Properties

Sydney Taxation Services — Mon, 20 Sep 2010 00:53:50 +0000

Borrowing expenses for Investment Properties
These are expenses directly incurred in taking out a loan for the property. They include loan establishment fees, title search fees and costs for preparing and filing mortgage documents – including mortgage broker fees and stamp duty charged on the mortgage.
Borrowing expenses also include other costs that the lender requires you to incur as a condition of them lending you the money for the property – such as the costs of obtaining a valuation or lender’s mortgage insurance if you borrow more than a certain percentage of the purchase price of the property.
The following are not borrowing expenses:
• insurance policy premiums on a policy that provides for your loan on the property to be paid out in the event that you die or become disabled or unemployed
• interest expenses.
If your total borrowing expenses are more than $100, the deduction is spread over five years or the term of the loan, whichever is less. If the total deductible borrowing expenses are $100 or less, they are fully deductible in the income year they are incurred.
If you repay the loan early and in less than five years, you can claim a deduction for the balance of the borrowing expenses in the year of repayment.
If you obtained the loan part way through the income year, the deduction for the first year will be apportioned according to the number of days in the year that you had the loan.

Education Tax Refund – what’s eligible and what’s not.

Sydney Taxation Services — Thu, 06 Aug 2009 04:41:34 +0000

Education Tax Refund – what you need to know

Items which qualify as eligible education expenses

Eligible education expenses are items that support a child’s or independent student’s primary or secondary school education. They include the purchase, lease, hire or hire-purchase costs, repairs and running costs of:

* laptops, home computers and associated costs
* computer-related equipment such as printers, USB flash drives, as well as disability aids to assist in the use of computer equipment for students with special needs
* home internet connections, including the costs of establishing and maintaining them
* computer software for educational use
* word processing, spreadsheet, database and presentation software, internet filters and antivirus software
* school textbooks and other paper-based school learning material, including prescribed textbooks, associated learning materials, study guides and stationery, and
* prescribed trade tools – for example, tools required to complete a school-based apprenticeship.

Remember, eligible expenses should be listed separately and receipts kept for the purposes of calculating your claim. Receipts may be necessary to prove the information you provided on your claim.
Expenses that are not eligible

Education expenses that are not eligible include:

* school fees
* school uniform expenses
* student attendance at school-based extra curricular activities such as excursions and camps
* tutoring costs
* sporting equipment
* musical instruments
* school subject levies – for example, payment for consumables for particular subjects such as woodwork, art or home science
* building levies
* library book fees
* school photos
* donations
* tuck shop expenses
* waiting list fees
* transport
* membership fees, and
* computer games and consoles.

Superannuation Tips – Superannuation Spouse Contribution Tax Offset

Sydney Taxation Services — Wed, 24 Jun 2009 02:05:57 +0000

A tax offset may apply if contributions are made on behalf of your spouse to a:
•   complying super fund, or
•   retirement savings account (RSA).
This tax offset applies to contributions made on behalf of non-working or low income-earning spouses, whether married or de facto.
You maybe able to claim an 18% tax offset on super contributions of up to $3,000 you make on behalf of your non-working or low income-earning spouse.
Eligibility
You may be entitled to a tax offset of up to $540 (maximum) each financial year if:
•   you did not claim a tax deduction for the contributions
•   both you and your spouse were Australian residents when the contributions were made
•   at the time of making the contributions you and your spouse were not living separately and apart on a permanent basis, and
•   the sum of your spouse’s assessable income and total reportable fringe benefits amounts for the financial year was less than $13,800, and
•   the contribution is made to a super fund, the fund must be a complying fund for the income year in which you make the contribution.
Note: A spouse includes a person who, although not legally married to you, lives with you on a genuine domestic basis as your husband or wife. It does not include a person to whom you are married but who lives separately and apart from you on a permanent basis.

We specialize in Superannuation advice. If you require further information and assistance in setting up superannuation for your spouse, please contact us.

Sydney Taxation Services – Accountants & Auditors

Sydney Taxation Services — Mon, 15 Jun 2009 02:27:03 +0000

Services We Provide:

Accounting
Bookkeeping
Budgeting
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Business performance reviews
Business planning
Cash flow forecasting
Compliance – with ASIC and ATO Laws
GST and BAS preparation and lodgement
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Starting your new business – setting up
Tax Planning
Tax return preparation and lodgement

Our Address: 19 Karloon Rd, West Pennant Hills, NSW, 2125, Australia

Telephone: +612 9873-4139

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