NTEU Tax Guide 2018

Tax Guide

nteu.org.au/tax

Contents Budget 2018...............................................................................1 ATO Focus 2018.......................................................................1 Work-related expenses Clothing and Laundry

Changes for 2018 .................................................................. 2 Individuals Business Rental Properties Superannuation

The Tax System.....................................................................3 Who needs to lodge a return?

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

Income.......................................................................................4 Salary & Wage Income Government Income Investment Income Other Income

Deductions..............................................................................5 Bank Fees Car Expenses Clothing Donations & Gifts (incl School Building Funds) Excursions, School Trips and Camps Home Office Insurance Rental Property Expenses Self-Education Expenses Tax Returns Teaching aids Travel Expenses Union and Professional Association Fees

Where to find your NTEU Tax Statement...............8 Rebates and Offsets............................................................8 Invalid Carer Tax Offset Low Income Tax Offset Private Health Insurance Rebate Senior Australians and Pensioners Tax Offset Zone Tax Offset

Do your 2018 tax NOW!.....................................................9 Questionnaire........................................................................9

NTEU National Office PO Box 1323, South Melbourne VIC 3205 Ph: (03) 9254 1910 Fax: (03) 9254 1915 national@nteu.org.au www.nteu.org.au Branch & Divisions: www.nteu.org.au/branches

NSW & National PO Box 314, Bowral NSW 2576 Ph: (02) 8006 5020 Fax: (02) 4210 8682 (central fax system) info@teachertax.com.au www.teachertax.com.au Victoria Ph: (03) 9014 9590 WA Ph: (08) 6102 0560

NTEU Tax Guide 2018. 18th edition. Published by NTEU. Written by Teacher Tax. All rights reserved Š2018. ISBN 978-0-9946377-1-0. 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.

Budget 2018

ATO Focus 2018

The Budget focuses on five key areas:

With sophisticated analytics to identify unusual claims, the ATO can now scrutinise every return even comparing taxpayers to others in similar occupations earning similar income. If a red flag is raised, the ATO can investigate. Focus moves from large multi-nationals to individual taxpayers and small business. Target areas include: • Undeclared income – There is no compelling reason for a business to operate using cash only.

• Unexplained wealth or lifestyle – A taxpayer’s income needs to match their lifestyle. Information can be sourced through the Department of Immigration and even Facebook.

• Private expenses wrongly claimed – mixing of private and work expenses.

Tax relief to encourage and reward working Australians

• Seven-year personal income tax plan for lower, fairer and simpler taxes.

• Immediate relief for low and middle income earners.

• Tackling bracket creep.

• Helping families with cost of living pressures.

• Simplifying the personal tax system by abolishing the 37 per cent tax bracket.

• No increase in the Medicare Levy.

Keep backing business to invest and create more jobs

• Legislating lower taxes for Australian businesses.

• Extending the $20,000 instant asset write-off.

• $75 billion for transport infrastructure.

• Building a stronger and smarter economy.

• A 21st century Medical Industry Growth Plan.

• Supporting Australia’s international competitiveness and exports in agriculture and the defence industry.

Guaranteeing the essential services that Australians rely on

• Supporting more choices for a longer life.

• Continuing to guarantee the Medicare Benefits Schedule.

• Backing the Gonski Review.

• Record funding for a new hospital agreement.

• Fully funding the National Disability Insurance Scheme.

• Lower energy bills and more investment to keep the lights on.

Keeping Australians Safe

• Strengthening airport security.

• Managing biosecurity risks to protect our environment, exports and agricultural and tourism sectors.

• Improving the national security architecture.

• Continuing Operation Sovereign Borders to combat the threat of people smugglers.

Ensuring that the Government lives within its means

• Disciplined fiscal management and tax and welfare integrity.

• Maintaining the trajectory to projected surplus in 2020-21.

• No longer borrowing for recurrent expenditure.

• Limiting payments growth to 1.6%.

• Ensuring multinationals pay their fair share of tax.

• Tackling the black economy.

Work-related expenses A taxpayer needs to make sure they spent the money themselves and were not reimbursed, the expense was directly related to earning their income and they have a record to prove it. If the expense is for work and private use, they can only claim a deduction for the work-related portion.

Some common incorrect claims: • Car travel between home and work.

• Car travel while carrying bulky tools or equipment.

• Car expenses for a car that has been salary sacrificed.

• Meal expenses for travel.

• Private portion of work travel.

• Everyday clothing that you wear to work (e.g a suit or black pants).

• Self-education course fees that have been put through the HELP scheme.

• Self-education costs not linked to your current job.

• Private portion of phone or internet expenses.

• Equipment costing more than $300.

Clothing and Laundry The ATO says last year a quarter of all clothing and laundry claims were exactly $150, which is the threshold that requires taxpayers to keep detailed records.

Some taxpayer’s think they are entitled to claim $150 as a ‘standard deduction’, however, the $150 limit is there to reduce the recordkeeping burden not as an automatic entitlement.

You still must have spent the money, it must have been for uniform, protective or occupation-specific clothing that you were required to wear and you must be able to show us how you calculated your claim.

You can’t claim a deduction for normal clothing, even if your employer requires you to wear it, or if you only wear it to work. E.g. a suit, a certain colour of clothing or the latest fashion line. Calculate your claim for washing, drying and ironing at $1 per load of work-related clothing only and 50c per load of mixed items.

You may be asked to demonstrate how often you wore your eligible clothing.

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Changes for 2018

Contractor payment reporting system

Individuals Proposed Personal Income Tax Rates

From 1 July 2018, the top threshold for the 32.5% tax bracket will increase from $87,000 to $90,000 as per below: Income Tax Rates (Residents) 2018/19 Taxable income Tax Rate $0 - $18,200 0 $18,201 - $37,000 19c for each $1 over $18,200 $37,001 - $90,000 $3,572 plus 32.5c for each $1 over $37,000 $90,001 $20,797 plus 37c for each $1 over $87,000 $180,000 $180,001+ $54,097 plus 45c for each $1 over $180,000 From 1 July 2022, the 19% bracket will be increased from $37,000 to $41,000 and the 32.5% bracket will be increased from $90,000 to $120,000. From 1 July 2024, the 32.5% bracket will apply to taxable incomes of $41,000 to $200,000, effectively removing the 37% tax bracket entirely. Incomes over $200,000 will be in the 45% top bracket.

Low Income Tax Offset (LITO)

From 1 July 2022, this offset will be increased from $445 to $645.

Low and Middle Income Tax Offset (LAMITO)

The offset of up to $530 will apply to the 2019-2022 tax returns. This offset will be in addition to the Low Income Tax Offset.

Current LITO $0 – $37,000 $37,001 – $66,666 $66,667 +

Proposed LAMITO Up to $445 $0 – $37,000 Up to $200 $445 less 1.5% 37,001 – $200 plus 3% x excess over $48,000 x excess over $37k $37k 0 $48,001 – $530 $90,000 $90,001 – $530 less 1.5% $125,333 x excess over $90k $125,334 + 0

HELP repayments

From 1 July 2018, new HELP debt repayment income and repayment thresholds will be introduced. The minimum income threshold will be $42,000 with a 1% repayment rate and the maximum income threshold will be $131,989 with a 10% repayment rate.

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Business

NTEU TAX GUIDE 2018

From 1 July 2018, the contractor payment reporting system will further expand to include security providers and investigation services, road freight transport and computer system design services.

Under the contractor payment reporting system, businesses are required to report payments to contractors to the ATO. A new online form will make the reporting process easier.

Introduction of a cash payment limit

From 1 July 2019, a limit of $10,000 for cash payments made to businesses for goods and services will be introduced. This measure will require transactions over a threshold to be made through an electronic payment system or by cheque.

Removing tax deductibility of payments

From 1 July 2019, businesses will no longer be able to claim a deduction for payments to their employees where they have not withheld any amount of PAYG from these payments when necessary.

Payments made by businesses to contractors where the contractor does not provide an ABN and the business does not withhold any amount of PAYG, will also be disallowed.

Rental Properties Vacant land deductions

From 1 July 2019, expenses associated with holding vacant residential or commercial land, including interest expenses will be no longer claimable. They can neither be carried forward, but instead added to the cost base of the land.

Deductions for expenses associated with holding the land will be available once a property has been constructed on the land, it has received approval and is available for rent.

Superannuation Capping passive fees and banning exit fees

From 1 July 2019, a 3% annual cap on passive fees charged by superannuation funds on accounts with balances below $6,000 will be introduced, as well as a ban on exit fees. The ATO will also require the transfer of all inactive superannuation accounts with balances below $6,000 to the ATO. The ATO will expand its data matching processes to proactively reunite these inactive superannuation accounts with the member’s active account.

Exemption from the work test for voluntary contributions

From 1 July 2019, an exemption from the work test for voluntary contributions to superannuation, for people aged 65-74 with superannuation balances below $300,000, in the first year that they do not meet the work test requirements will be introduced. The work test exemption will give recent retirees additional flexibility to get their financial affairs in order in the transition to retirement.

Personal contribution deductions

From 1 July 2018, the ATO will alert individuals to the Notice Of Intent (NOI) requirements with a tick box to confirm they have complied in the tax return.

Currently, some individuals receive deductions on their personal superannuation contributions but do not submit a NOI. This results in their superannuation funds not applying the 15% tax to their contribution. As the contribution has been deducted from the individual’s income, no tax is paid on it at all.

Preventing unintentional concessional cap breaches

From 1 July 2018, individuals whose income exceeds $263,157, and who have multiple employers can nominate which employers need to take the superannuation guarantee.

The measure will allow eligible individuals to avoid unintentionally breaching the $25,000 annual concessional contributions cap as a result of multiple compulsory SG contributions. Employees who use this measure could negotiate to receive additional income, which is taxed at marginal tax rates.

Proceeds of downsizing

From 1 July 2018 to reduce a barrier to downsizing, a taxpayer aged 65 or over can make a non-concessional contribution up to $300,000 from the proceeds of selling their home.

These NCCs will be in addition to those currently permitted under existing rules and caps and they will be exempt from the existing age test, work test and the $1.6 million balance test for making NCCs. This will apply to sales of a principal residence owned for the past ten or more years.

If the house is owned by a couple, both taxpayers will be able to take advantage of this measure for the same home.

Three-yearly audit cycle for some SMSFs

From 1 July 2019, the annual audit requirements will change from an annual to a three-yearly requirement for SMSFs with a history of good record-keeping and compliance. This measure will reduce red tape for SMSF trustees that have a history of three consecutive years of clear audit reports and that have lodged the fund’s annual returns in a timely manner.

The Tax System Who needs to lodge a return?

If you have earned income over $18,200 in this 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’re not required to lodge a return it is a good idea to notify the ATO that a return is not necessary.

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-Assessment Australia has a self-assessment taxation system. This means that your return is accepted initially by the Australian Taxation Office (ATO) 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 reported 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 legislation 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 NTEU TAX GUIDE 2018

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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 accordance 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.

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 $180 for every 28 days the return is late to a maximum of $900. 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.

Other advantages of using a Tax Agent 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.

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NTEU TAX GUIDE 2018

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 & Wage Income Salary and wages are the main forms of payments 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 superannuation fund. Some of these payments receive concession tax treatment up to certain limits called caps. Areas include resignation, age retirement, redundancy, dismissal, death of an employee.

Government Income Assessable government payments include; • Age pension • Newstart allowance • Youth Allowance • Austudy payment • Parenting payment (partnered) • Partner Allowance • Sickness Allowance • Special benefit • Widow Allowance • Farm household allowance • Interim income support payment • The following payments if you are 16 or older • Abstudy living allowance • Payments under the Veterans’ Children Education Scheme • Payments under the Military Rehabilitation And Compensation Act Education and Training Scheme 2004 (MRCA education allowance) • Other taxable Australian Government education or training payments • Community Development Employment Project (CDEP) payments • Disaster recovery allowance

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 dividend 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.

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 satisfied 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 recommend you consult a tax professional.

Deductions Deductions are allowable expenses or outgoings that have been incurred in earning any assessable 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 directly into a bank account are a claimable expense.

Car Expenses Using your car for work purposes can be claimed as a deduction. It does not include travel between work and home. You can claim for travel between two separate workplaces, or between a workplace and a place of business.

Method 1 – Cents per kilometre

You can claim up to 5,000 business kilometres per car. The rate of 66c per kilometre is applicable for all cars. You do not need written evidence as such but you need to be able to show how you calculated your claim.

Method 2 – Logbook

You claim the business percentage of costs associated with running your car. You need to record odometer readings and you need evidence of all costs except fuel.

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 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. 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 conventional clothing and is not an allowable deduction.

Donations & Gifts (incl 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 NTEU TAX GUIDE 2018

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• Property purchased during the 12 months before making the gift • Listed shares valued at $5,000 or less • Trading stock disposed of outside the ordinary course of business • Cultural gifts Program • Heritage gifts 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 • Membership fees • Payments to school building funds as an alternative to an increase in school fees • Payments where the person has an understanding 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 authority, or a non-profit society or association. n.b. 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.”

students, the expenses incurred by the teacher are not deductible.

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 (e.g. school sporting events or school band competitions) the expenses would be allowable.

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. expenses associated with 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.

Excursions, School Trips and Camps

Rental Property Expenses

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 Parliament 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. For example, 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

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

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NTEU TAX GUIDE 2018

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 45 cents per hour for these office expenses instead of keeping details of actual costs.

Also, the following may be applicable (apportioned 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.

• 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.

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. 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.’

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 below for where to find your NTEU Tax Statement.

Tax Returns The cost of managing your tax affairs is a tax deductible 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 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 science 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.

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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 exception 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 Carer 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.

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 Statement If 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.

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NTEU TAX GUIDE 2018

Do your 2018 tax NOW! Let us help you lodge your tax return. Our tax service was designed BY teachers FOR teachers.

We will access your income details with the ATO and then we just need to add in your work-related expenses. We can correspond by email or phone if you prefer. Your refund will be deposited into your bank account within *14 days (*ATO processes 94% in 14 days).

Our fee is only $110 (incl GST) for a standard return, which is deducted from your refund. NTEU members receive a 10% discount.

Email : info@teachertax.com.au Phone: (02) 8006 5020 Fax: (02) 4210 8682 We just need the following details to act as your agent and get started: Full Name Date of birth Tax File Number Address Phone Email

Signed Client _______________________________________________________

Date ___________________

Please complete the questionnaire below...

Questionnaire Do you have a spouse or de facto?

(If yes, please supply name, date of birth & approximate taxable income) Do you have dependents? (If yes, how many?)

Do you have Private Health Insurance?

Do you have a HELP debt?

Income

How many payment summaries are you expecting?

If you receive an allowance on your payment summary what is it for? (e.g. travel) Do you receive any Government pensions or allowances?

Do you have any savings which earns bank interest?

Do you have any shares that receive dividends?

Do you earn any business income?

Do you own a rental property?

Continue questionnaire overpage...

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9

Deductions

D1

Use of your own car for work Estimate of kilometres up to travel (not to and from work) 5,000km

D2

Travel not reimbursed by your Accommodation school Flights Car Hire Public Transport

D3

Work clothing

School Logo or Protective

D4

Self-education (must be a link between the course and your current employment)

Course Name

D5

Other work expenses

$

Institution Course Fees

$

Textbooks

$

Travel

$

Bank Fees

$

Books and Journals

$

Computing (< $300)

$

Computing (> $300)

$

Purchase date Description

Internet (monthly cost)

$

% work use

Memberships

$

Phone (monthly Cost)

$

Seminars

$

Stationery

$

Subscriptions

$

Sun Protection (Hat, sunglasses, sunscreen)

$

Teaching aids, resources

$

Teacher registration

$

Union Fees

$

Working with Children check

$

Or estimate km

Home Office (Estimate of hours spent working from home each week)

D9

Donations

$

D10

Tax Affairs (Cost of getting your tax done last year)

$

D15

Other

10

NTEU TAX GUIDE 2017

Income Protection Insurance

$

% work use