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Tax for Teachers 2011
Why does the ATO focus on school teachers?
According to the ABS there
(The 2011-12 list includes real es-
are 280,000 teachers in
tate employees, carpenters and flight
attendants, but not teachers).
Australia.
3. Insufficient documentation
to support motor vehicle and
travel expenses (see pg 3)
This makes teaching one of
the most common of all
occupations.
So when the ATO says it is
“targeting” school teachers,
So how do you claim what
you are entitled to without
doing anything illegal?
Here are some areas the ATO
pays close attention to:
or private expenses (see pg 4)
5. Large and unusual claims
The ATO looks at “claims outside normal occupation, indi-
they can get the attention of
1. Claims that cannot be
a large audience.
supported by written
This is probably why it feels
4. Claims for non-deductible
vidual or industry ranges”
Read on to find out a bit more
evidence
on these topics, or visit the
like teachers are on the Tax
2. Incorrectly claiming home
Office radar every couple of
office, mobile phone and in-
years.
ternet expenses (see pg 3)
ATO link mentioned in the
article below.
Jarrod Rogers CPA
Don’t wait until the next school holidays to get your tax refund.
We have teacher-friendly hours, including evenings and Saturdays.
Online consultations available. Log in from your home or workplace.
Inside this guide:
Free ATO Publication
The ATO has
every year and it runs
To view a copy go to
produced a free
through examples of
the ATO website at:
publication to assist
what you can and
teachers prepare their can’t claim.
tax returns.
Much of the flyer
It is called Teachers
you’re reading now is
20102010-11.
drawn from the ATO
A new version of the
document is released
Declaring your income
2
Claim car expenses without
3
a log book
www.ato.gov.au and
search for teachers
in the search box on
the top-right of the
Guide to correctly claiming
3
home office expenses
Quick list of tax claims
4
Top deductions for teachers
4
Other tax issues
4
screen.
publication.
Tax for Teachers 2011
Page 2
Calculating your income
Your PAYG Payment
The PAYG Payment
Summary (known as a
Summary will be issued
group certificate until
by the Dept of
1999) contains all you
Education (state
need to know about
system) or by your
your teaching income
school (private system).
for the year.
You need to make sure
This includes any:
•
Allowances
(e.g. motor vehicle allowances)
•
Reportable fringe benefits
(e.g. if you salary package a car)
•
Reportable super contributions
(if you make extra super contributions)
By law you must
you include every box
receive your PAYG
with a number in it in
Tip: some partpart-time teachers receive a PAYG
Payment summary by
your tax return.
summary from the education dept and their
14 July 2011.
2011
school. Both need to go in the tax return.
2
1
3
4
5
Completing your tax return
Amount
What is this amount?
Tax Return Item
1 Gross Payments
Your pre-tax salary.
Item 1
2 Tax Withheld
Tax deducted from your pay
Item 1
3 Fringe Benefits
Salary packaged items, like a motor vehicle on novated lease
Item IT1
4 Reportable Super
Super contributions above employer amount (nil for most ppl)
Item IT2
5 Allowances
Extra pay to cover expenses, e.g. Car travel
Item 2
Tax for Teachers 2011
Page 3
Car Expenses
If you are claiming car
Do not include:
expenses using the cents per
• Trips to social functions
km method you don’t require
• Travel to and from your own
written evidence (e.g. receipts).
school, even if it is after hours
You just need to show how you
or on Saturday.
calculated business kilometers
Don’t stress about keep-
travelled (e.g. from your diary).
ing car receipts. You can
claim car expenses without any receipts.
Almost every teacher I meet
uses their car for work but not all of them are
Home to work travel is claimable
travelled by the ATO rates.
rates
in limited circumstances such as
Engines <1.6 L
63 cents
Engines 1.6—2.6L
74 cents
Engines > 2.6L
75 cents
Include:
their tax return.
• Excursions & camps
claiming because they
wrongly believe they must
have a log book.
leased via salary sacrifice.
You then multiply the km
claiming car expenses on
Many people miss out on
• Any car expenses if your car is
if you are carrying heavy or bulky
items to school (e.g. a large
musical instrument or woodwork
tools).
Other travel expenses
• PD days & conferences
You can claim for public
• Travelling to another school
transport fares, taxi costs and
• Travelling between two school
even airfares.
airfares but you need to
campuses
keep receipts/tickets.
Home office expenses
Most teachers will work from
hours you worked in your home
home to finish corrections,
office.
lesson plans or reports that
could not be done at school.
Teachers claim the costs of
electricity, gas and furniture
by claiming actual costs, or by
using a fixed rate of 34 cents
per hour.
hour
You have to prove the hours
week period showing the
Purchases over $300 are subject
You can use this diary to work
to depreciation. And you can
out the home office hours for
only claim the portion that
the full 40 week school year.
relates to work.
Most teachers cannot claim
For example, if 25% of your
occupancy costs include rent,
household internet use is
mortgage interest, rates and
related to your work then claim
insurance.
25% of the cost.
Computers and internet
Telephone
worked at home by keeping a
diary for a representative four
these for work.
In addition you can claim the
cost of a home computer or
internet connection if you use
Telephone includes
home and mobile calls (again,
private use / work use
apportionment is required).
Beyond Accountancy Services
Tax for teachers 2010-11
Can I claim a deduction for...
YES! You CAN claim…
Answering machines and
No! You CAN NOT claim…
part of your home phone
rental
e.g. casual relief teachers
If you are a designated first
aid person at school
Union Fees (AEU, VIEU etc)
3.
Travel & car costs (pg 3)
individual needs
4.
Home office expenses (pg 3)
Newspapers
5.
Stationery
Computers paid through
6.
Classroom supplies &
plied to students for their
tion for outdoor work
pre-tax deductions e.g.
teaching aids (e.g. art sup-
via the Education Dept .
plies, stickers & prizes)
Fitness expenses, even if
7.
Grooming expenses
An ordinary watch
Text books (for use as a
resource, or for student use)
you teach phys ed.
Excursion expenses
Stopwatch
(e.g. VIT in Victoria)
2.
Sunglasses, sun proteclike yard duty, phys ed.
Student expenses / gifts
Teacher’s Registration
Includes gifts & items sup-
be contacted
First aid courses
1.
association fees
who are on call and need to
Social functions and staff
The top deductions
teachers should be claiming
8.
Self-education costs (degree
or diploma courses related
to your teaching role)
Other tax issues
in being a property investor. If
This publication only
This includes expenses for your
covers tax issues specific to
partner and dependent children. you are a landlord make sure
teachers. But there are many
Eligible items include doctor,
other issues and hints to bear
dentist, orthodontist, medicines
in mind.
and optical.
Bank interest
Education tax refund
Don’t forget to declare any bank
Claim 50% back on certain edu-
interest in your tax return. The
cation costs.
ATO checks tax returns against
Find out more at http://
data from the banks.
www.beyondaccountancy.com.a
you download our flyer: http://
www.beyondaccountancy.com.a
u/?p=345
Super CoCo-contribution
If you are earning under
$61,980 the ATO could match
some of your personal super
contributions.
u/?p=473
Search “42616” at ato.gov.au
Rental properties
Need help? Call us on
There are many tax advantages
1300 823 011
Medical expenses
A 20% rebate is payable on medical expenses over $2,000.