 |
 |
 |
 |
 |
 |
 |
 |
 |
DISABILITY AND AGED CARERS
TAX RETURNS
For the year ended 30 June 2024
TR 2021/1
$30,000 Salary Packaging Exempt Fringe Benefits
Your employer must be a Not for Profit - Public Benevolent Institution e.g. Endeavour or Centrecare
The maximum Grossed Up Exempt Fringe Benefits per employee is $30,000.
The maximum Un-grossed Up Exempt Fringe Benefits per employee is $30,000 x .535 = $16,050.50
This is the equivalent of a tax deduction as it paid in pre-tax dollars.
For most clients this means at tax refund of $16,050.50 x 34.5c (tax rate > $37,000) = $5,537.42
Or $5,537.42 / 26 fortnight pays = $212.98 per fortnight tax refund.
How are these payments made?
Many clients have these amounts paid into their home loans, car loans, credit cards, rent or other private payments.
Who makes these payments?
Usually your payroll.
You will need to contact payroll to see if you satisfy their conditions.
OVERNIGHT TRAVEL EXPENSES
TR 2021/1.
"In this draft Ruling, 'sleep away from home' does not describe the activities of employees who are on duty while sleeping at a workplace near their home - for example, a hostel worker, care worker or overnight supervisor at a boarding school,' or choose to sleep near their workplace, rather than returning home between their work shifts."
Please read TR 2021/1 Example 5 below for the definition of near, that refers to 50 kms.
There may be exceptions to this general rule but I would recommend that you leave out any claims then object within 60 days so as to avoid penalties.
If successful you must keep actual records for your meals and incidentals.
These will usually be Coles and Woolworth's receipts.
You must keep all your receipts and apportion for overnights.
MOTOR VEHICLE EXPENSES
Travel to and from work is usually not a tax deduction.
Some exceptions are:
1. Carrying bulky equipment with no secure lockup at work.
(Bulkiness of equipment is determined by size & weight. For tradesmen it could mean a minimum of a 35 kg tool box plus other items e.g. nail guns, drills, drop saws, materials, etc. Bulkiness is also determined by size e.g. Ladders, bench horses, large oil drums, spare tyres, etc.) If in doubt ask for a private ruling.
2. Travel between two places of work.
3. Travel to attend meetings and then to home or work.
4. Travel from home or work to see clients and then back to home or
work.
5. Some travel to a place of education.
6. When you travel overnight for
work.
This only applies to motor vehicles whose carrying capacities are
1 ton or less or fewer than 9 passengers.
One vs Multiple Work Locations
Most of my clients seem to have one of two types of travel situations.
1. Where they only visit one house then take clients on excursions.
In these situations travel to and from the client's house would not be business travel but travel with the client on excursions would be allowable.
or
2. Where they travel to multiple houses to assist various clients then take them on excursions.
In these situations business travel starts from when you leave home and ends when you arrive home including all excursion travel.
Most of my clients use the ‘log book
method’ or the ‘set rate per kilometre method’.
Method 1
LOG BOOK METHOD
You must keep a log book for 12 weeks for each car once very 5 years.
You must start a new log book when you change cars or the business % changes by more than 10%.
You must have written evidence for registration, insurance, services, repairs, depreciation, interest, lease payments, RACQ, car washes etc.
PLEASE SUMMARIZE THE FOLLOWING:
Motor vehicle - 30 June 2023 and 30 June 2024 odometer readings
Motor vehicle - Log book % and business kilometers traveled
Motor vehicle - Fuel
Motor vehicle - Registration
Motor vehicle - Insurance
Motor vehicle - Interest or leasing expenses (Please provide hire purchase or loan agreement)
Motor vehicle - Repairs
Motor vehicle - Depreciation (Please provide date of purchase) 25% diminishing value method
If purchased after 1 July 2023 limit $68,108 - 25%
Motor vehicle - Breakdown service e.g. RACQ
Motor vehicle - Car washes
Motor vehicle - An extended warranty is deductible spread over the period that the warranty applies. e.g. If you
have a factory warranty for 3 years then you buy an extended warranty for 3 years. You may claim an apportioned
tax deduction over years 4, 5 and 6.
You may claim $200 worth of items costing < $10 without receipts.
You do not need receipts for fuel based on a reasonable estimate of the cost per business kilometers travelled.
e.g. 500 kms per tank with an average fill up of 50 litres = 10 kms per litre.
Therefore 15,000 kms / 10 kms = 1,500 litres x $1.95 (average petrol cost per litre in QLD) = $2,925
Method 2
SET RATE PER KILOMETRE METHOD
Motor vehicle tax receipt exception: ‘set rate per kilometre method’ 85c per kilometre x up to 5,000 kms.
You must be able to work out your estimate by using a diary or regular pattern of travel.
This means that the maximum claim using this method will be 85c x 5,000 kms = $4,250.
Jenny chooses Method 1 because she will receive the largest tax refund.
Google ATO work related car expenses
KEEP ALL RECEIPTS AND BANK STATEMENTS - We recommend Receipt bank.
Protective clothing
Protective clothing are generally tax deductible if it is designed to protect:
Steel capped boots, high visibility shirts, fluro trousers, fire proof clothing, non-slip safety shoes, aprons, etc.
Many carers claim non slip safety shoes for slippery and wet bathroom situations.
WORK EXPENSES
iPhone, mobiles & home phone
Computers - iPad, Macs, laptops & desktops
Computer supplies
Stationery - Cartridges, diaries, pens & office sundry
Internet
Self education, conferences and courses.
PRIVATE USE APPORTIONMENT
If there is private use (other than incidental use) a 28 day diary is required each year.
RECORDS
You may claim $200 worth of items costing < $10 without receipts.
SUN PROTECTION AND SUN GLASSES
Includes sun glasses (not prescription), sun screens and hats.
You do not need receipts for up to $200 of items that cost less than $10. The $200 is a total for the whole tax return.
TOLLS & PARKING
You do not need receipts for up to $200 of items that cost less than $10. The $200 is a total for the whole tax return.
COURSES
Courses include fees (but not HECS), books, laptops, internet, stationery, home office expenses, some travel to a place of education.
You do not need receipts for up to $200 of items that cost less than $10. The $200 is a total for the whole tax return.
The course must relate to your current income producing activity, not income that will be made in the future. e.g. Medical School expenses are not a tax deduction for a doctors income in the future.
If your course is run by a university, TAFE or college you must reduce your expenses by the first $250.
Many of my clients do 1st Aid courses.
SECURITY/CRIMINAL CHECKS ATO TR 98/6 PARA 177
Security checks are usually not deductible as the expense happens at a point too soon before the income is earned.
Renewal of criminal checks may be deductible as you are currently earning income e. g school teacher's blue cards.
TR 2021/1 Example
Working at new locations every few weeks and
staying away from home
Special demands travel (deductible)
Work-related accommodation (deductible)
Mike is an employee
foreman specialising in road construction, particularly intersection
construction. He works for a road construction firm, which has an
office near Mike's home in Melbourne. Mike does not have a set desk
as he is rarely in the office, only attending meetings one or two
times per month.
Mike is mainly based and
required 'on-site', which can be anywhere throughout Victoria. He
generally works Monday to Friday, and is paid separate weekend rates
if required to work on weekends.
Work equipment required
for the projects is carried on trucks driven by other employees.
Projects can be between 50
to 200 kilometres away from Mike's home or the firm's office, and
can last for periods ranging from one to eight weeks. Where a
project is more than 100 kilometres from home, Mike is paid a daily
'travel allowance' by his employer for the number of days of the
project to help cover the cost of his accommodation and meals.
Apart from being paid for
weekend work and receiving the daily 'travel allowance', Mike's
salary package recognises all aspects of his position, including the
requirement for him to travel between Melbourne and various project
sites at the start and end of each project. His employer requires
Mike to respond to any work calls received while in transit between
Melbourne and the project sites.
It is up to Mike to decide
if he stays away from home overnight when at project locations. If
he does stay away, he arranges his own accommodation and meals.
Typically, where the project is more than 100 kilometres from home,
Mike usually chooses to stay in short term accommodation such as
motels, bed and breakfasts, or a cabin or caravan at a caravan park,
depending on what is available in the area in which his 'road
construction team' is working.
Mike always stays in one
accommodation location for each project and commutes between that
accommodation and the project site.
Mike does not travel from
one project to the next or from one work site to the next. Mike will
usually travel from home to a particular project site and then
return home upon completion of that project.
On occasions Mike chooses
to travel back to Melbourne from a project location during the week
or on weekends, rather than staying away from home overnight. On
these occasions, he returns to the project location in time to
recommence work at the required time. He undertakes this travel at
his own cost.
Mike's transport expenses
for trips between Melbourne and the project locations at the start
and end of each project and are deductible. Mike undertakes this
travel in the performance of his work activities, which reflect
special demands associated with ongoing travel between various work
locations.
Mike's accommodation,
meals and incidentals for the periods he spends away from Melbourne
on projects are deductible because the travel is required by his
work and he is not living away from home.
The cost of travel between
project locations and Melbourne during the week and on weekends is
not deductible. It is not undertaken in performing Mike's duties,
and occurs by choice for personal reasons.
Further, Mike cannot deduct accommodation and meal expenses for periods when he has returned home, including for periods when Mike receives a travel allowance to cover the costs of working away from home and he chooses to travel home. These are private expenses.
DISCLAIMER
The information provided in the above documents are not intended to be, nor should it be construed as tax advice. Any specific recommendation for a client can only be done after their individual circumstances have been determined by David Douglas Accountants.
We have clients from the following locations:
Brisbane, Gold Coast, Sydney, Newcastle, Sunshine Coast, Cairns, Canberra, Melbourne, Adelaide, Perth, Darwin.
Other:
Brisbane, Albion, New Farm, Teneriffe, Newstead, Windsor, Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra.
Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba, North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie Island, Elimbah, Kippa-Ring.
We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and sole traders.
Liability limited by a scheme approved under Professional Standards legislation