News

Changes to the tax system that will affect teachers this year

What do you need to know to maximise your return this year?

<h4>Talking tax might feel about as thrilling as grading a hundred essays&comma; but the joy of knowing you’ve squeezed every cent out of your return&quest; That’s pure last-day-of-term bliss&period;<&sol;h4>&NewLine;<p>While the rules can shift a little each year&comma; the golden rule remains&colon; know what you can &lpar;and can’t&rpar; claim&period; It’s worth doing your homework—this time&comma; for <em>your<&sol;em> benefit&period;<&sol;p>&NewLine;<p>&ZeroWidthSpace;<a href&equals;"https&colon;&sol;&sol;www&period;school-news&period;com&period;au&sol;latest-print-issue&sol;" target&equals;"&lowbar;blank" rel&equals;"noopener"><strong>Read the latest print edition of <em>School News<&sol;em> HERE<&sol;strong><&sol;a><&sol;p>&NewLine;<h4><strong>Changes to individual tax rates<&sol;strong><&sol;h4>&NewLine;<p>First&comma; the good news&colon;<&sol;p>&NewLine;<p>Everyone should pay less this year&comma; thanks to some adjustments in the tax rates which became effective from 1 July 2024&period;<&sol;p>&NewLine;<p>The 16 percent tax rate has been reduced from 19 percent for incomes between &dollar;18&comma;201 and &dollar;45&comma;000&period;<&sol;p>&NewLine;<p>The 30 percent tax rate has been reduced from 32&period;5 percent for incomes between &dollar;45&comma;001 and &dollar;135&comma;000&period;<&sol;p>&NewLine;<p>The 37 percent tax rate threshold has increased from &dollar;120&comma;001 to &dollar;135&comma;001&period;<&sol;p>&NewLine;<p>The 45 percent tax rate threshold has increased from &dollar;180&comma;001 to &dollar;190&comma;001&period;<&sol;p>&NewLine;<h4><strong>What can teachers claim&quest;<&sol;strong><&sol;h4>&NewLine;<p>The rules for what you can claim are very simple&colon;<&sol;p>&NewLine;<ul>&NewLine;<li>You need to have paid your own money for something&period;<&sol;li>&NewLine;<li>It can’t have been reimbursed by your school or employer&period;<&sol;li>&NewLine;<li>The expenditure must be directly related to your current position for which you are earning an income&period;<&sol;li>&NewLine;<li>And you must have records to prove it&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<h4><strong>Personal items<&sol;strong><&sol;h4>&NewLine;<p>You can claim personal items that have been purchased specifically for work&period; If you also use them for private use&comma; you can only claim a percentage&period;<&sol;p>&NewLine;<p>Examples&colon;<&sol;p>&NewLine;<p>Bags or cases to carry work-related items to and from work&period;<&sol;p>&NewLine;<p>Hats and sunglasses if you predominantly work outside&comma; or helmets and safety glasses if used for work-related purposes&period;<&sol;p>&NewLine;<p>Sunscreen and PPE including gloves&comma; face masks&comma; hand sanitiser and anti-bacterial sprays or wipes&period;<&sol;p>&NewLine;<p>Uniforms or anything with a school logo or specialist items required by your employer &lpar;such as safety glasses or a lab coat&rpar; can be claimed as a deduction&period; However&comma; if you get a uniform allowance from your employers&comma; you cannot claim&period;<&sol;p>&NewLine;<p>Laundering or dry-cleaning your occupation-specific uniform or clothing can be claimed&comma; but you should keep all receipts for dry-cleaning&period;<&sol;p>&NewLine;<h4><strong>Books&comma; fees and self-education<&sol;strong><&sol;h4>&NewLine;<p>Seminars&comma; conferences&comma; and training courses that are related to your work as a teacher&comma; that you pay for yourself&comma; can be claimed&period; Note that courses and education need to be relevant to your <em>current position<&sol;em>&comma; but you can claim on fees&comma; registration&comma; textbooks&comma; stationery and travel expenses&period; You cannot claim on training or education that is solely for the purpose of getting a new job&period;<&sol;p>&NewLine;<p>Books&comma; journals&comma; magazines or subscriptions where directly relevant to your work&comma; and less than &dollar;300 each&comma; can be claimed&period;<&sol;p>&NewLine;<p>You can claim your annual Teachers’ Registration renewal fees and any other industry-specific fees and memberships&comma; including union fees&period;<&sol;p>&NewLine;<p>The cost of doing a First Aid course if you are the designated First Aid Officer &lpar;and your employer has not reimbursed you&rpar;&period;<&sol;p>&NewLine;<p>Working with Children Check and similar&period;<&sol;p>&NewLine;<h4><strong>Electronics&comma; phone and internet use<&sol;strong><&sol;h4>&NewLine;<p>If you use your personal phone or electronic devices for work&comma; you can claim a deduction for the work-related portion of your phone&comma; data&comma; and internet costs&period; This would include calling or emailing parents after hours&comma; using your home computer to grade papers or make worksheets&period;<&sol;p>&NewLine;<p>If your work use is minor and incidental and the claim is under &dollar;50&comma; you don’t need to keep records&period; But if you&&num;8217&semi;re claiming more than &dollar;50&comma; you&&num;8217&semi;ll need to keep some proof&period; That might be something like an itemised phone bill where you’ve marked your work-related calls and data use&period;<&sol;p>&NewLine;<p>Learn more about using your computer for personal and work here&colon; <a href&equals;"https&colon;&sol;&sol;www&period;ato&period;gov&period;au&sol;individuals-and-families&sol;income-deductions-offsets-and-records&sol;guides-for-occupations-and-industries&sol;r-z&sol;teachers-and-education-professionals-income-and-work-related-deductions&sol;deductions-for-work-expenses&sol;teacher-and-education-professional-expenses-ps" target&equals;"&lowbar;blank" rel&equals;"noopener">Teacher and education professional expenses P–S &vert; Australian Taxation Office<&sol;a><&sol;p>&NewLine;<h4><strong>Travel<&sol;strong><&sol;h4>&NewLine;<p>You cannot claim on trips between home and school&comma; however&comma; if you work in two teaching jobs&comma; you can claim the trip between the first job and the second if on the same day&period;<&sol;p>&NewLine;<p>If you travel from school to another place for an excursion&comma; day trip or camp – and you do it in your own private vehicle – or you are transporting students to a school&sol;sport related event&comma; you can also claim&comma; so it’s important to keep a record of the date&comma; time and mileage&period;<&sol;p>&NewLine;<figure id&equals;"attachment&lowbar;23100" aria-describedby&equals;"caption-attachment-23100" style&equals;"width&colon; 543px" class&equals;"wp-caption aligncenter"><img class&equals;"wp-image-23100 " src&equals;"https&colon;&sol;&sol;www&period;school-news&period;com&period;au&sol;wp-content&sol;uploads&sol;2023&sol;02&sol;Photo-by-Element5-Digital-on-Unsplash-1024x724&period;jpg" alt&equals;"" width&equals;"543" height&equals;"384" &sol;><figcaption id&equals;"caption-attachment-23100" class&equals;"wp-caption-text">Stationery you use for teaching that&&num;8217&semi;s not supplied by your school&comma; can be claimed&period; Photo by Element5 Digital on Unsplash<&sol;figcaption><&sol;figure>&NewLine;<h4><strong>School Supplies<&sol;strong><&sol;h4>&NewLine;<p>The stationery you use for work &lpar;not provided by your school&rpar; that you use at work or home can be claimed&comma; including diaries&comma; notepads&comma; card&comma; printer paper&comma; ink and pens&period;<&sol;p>&NewLine;<p>Teaching aids such as stickers&comma; posters&comma; maps&comma; calculators&comma; whistles and stopwatches can also be claimed where relevant to your specific job&period;<&sol;p>&NewLine;<p>You cannot claim for items you purchase for students such as stationery or if you buy them lunch or pay for them to attend an excursion&period;<&sol;p>&NewLine;<h4><strong>Home office<&sol;strong><&sol;h4>&NewLine;<p>You may be able to claim a deduction for expenses you incur when working from home &lpar;marking&comma; preparing for lessons etc&rpar;&comma; such as running electricity&comma; phone and internet expenses&comma; and the decline in value of equipment or furniture&period;<&sol;p>&NewLine;<p>There are different methods you can use to calculate the deductions&period; Visit <a href&equals;"https&colon;&sol;&sol;www&period;ato&period;gov&period;au&sol;calculators-and-tools&sol;home-office-expenses-calculator" target&equals;"&lowbar;blank" rel&equals;"noopener">Home office expenses calculator &vert; Australian Taxation Office<&sol;a> to learn more&period;<&sol;p>&NewLine;<h4><strong>Common misconceptions<&sol;strong><&sol;h4>&NewLine;<p>The ATO wants to address several misconceptions that can lead to incorrect claims&colon;<&sol;p>&NewLine;<ul>&NewLine;<li><strong>&dollar;300 deduction myth<&sol;strong>&colon; While you can claim up to &dollar;300 in work-related expenses without receipts&comma; you must still be able to demonstrate how the expenses were incurred&period; Think of it as needing to provide a bibliography rather than references… for less than &dollar;300 at least&period;<&sol;li>&NewLine;<li><strong>Travel expenses<&sol;strong>&colon; Travel between home and work is generally not deductible &lpar;even if it feels like the longest part of your day&period;&rpar;<&sol;li>&NewLine;<li><strong>Bank statements as proof<&sol;strong>&colon; Bank statements are insufficient evidence for deductions&semi; you must have detailed records and receipts in case you are audited&period; If you are claiming more than &dollar;300 in deductions&comma; you need to keep records for <em>all<&sol;em> deductions for at least five years&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<p>On the ATO website&comma; ATO Assistant Commissioner Rob Thomson reminded taxpayers that &OpenCurlyDoubleQuote;exaggerated deduction attempts would not be tolerated&period;”<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Work-related expenses must have a close connection to your income-earning activities&comma; and you should be prepared to back it up&comma; with records like a receipt or invoice&period; If your deductions don’t pass the &OpenCurlyQuote;pub test’&comma; it’s highly unlikely your claim would meet the ATO’s strict criteria&comma;” he stated&period;<&sol;p>&NewLine;<p>According to the ATO&comma; the focus this tax year will be areas where people commonly make errors&comma; such as work-related expenses&comma; working from home deductions and where people have multiple income sources&period;<&sol;p>&NewLine;<h4><strong>Record keeping<&sol;strong><&sol;h4>&NewLine;<p>The ATO says a correct receipt will show all of the following&colon;<&sol;p>&NewLine;<ul>&NewLine;<li>the name or business name of the supplier<&sol;li>&NewLine;<li>the amount of the expense or cost of the asset<&sol;li>&NewLine;<li>the nature of the goods or services that you purchase<&sol;li>&NewLine;<li>the date you purchase the goods or services<&sol;li>&NewLine;<li>the date the document was produced&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<blockquote>&NewLine;<p><strong>The &dollar;300 limit can sometimes prevent teachers from claiming all the items they are entitled to&comma; simply because they have not kept records throughout the year&period; The simple solution is to ensure that every time you make a work-related purchase &lpar;even if you’re not sure it is claimable&rpar; you keep the receipt&period; <&sol;strong><&sol;p>&NewLine;<&sol;blockquote>&NewLine;<p>Even better&comma; take a photo of the receipt or use an app like MyDeductions &lpar;an app created by the ATO&rpar; to keep track on the go&period;<&sol;p>&NewLine;<h4><strong>Get organised<&sol;strong><&sol;h4>&NewLine;<p>The best way to maximise your tax return is to be methodical and organised&period; Become familiar with what you can &lpar;and can’t&rpar; claim&comma; and keep records every time you make a purchase&period;<&sol;p>&NewLine;<p>For more information about the specifics of what teachers can claim&comma; visit&colon; <a href&equals;"https&colon;&sol;&sol;www&period;ato&period;gov&period;au&sol;individuals-and-families&sol;income-deductions-offsets-and-records&sol;guides-for-occupations-and-industries&sol;r-z&sol;teachers-and-education-professionals-income-and-work-related-deductions" target&equals;"&lowbar;blank" rel&equals;"noopener">Teachers and education professionals – income and work-related deductions &vert; Australian Taxation Office<&sol;a><&sol;p>&NewLine;<p>IMPORTANT DISCLAIMER&colon; <em>This article is published as a guide only and does not constitute formal advice&period; Always seek professional advice before acting in any of these areas&period;<&sol;em><&sol;p>&NewLine;

Explore our latest issue...
Shannon Meyerkort

Shannon Meyerkort is a freelance writer and the author of "Brilliant Minds: 30 Dyslexic Heroes Who Changed our World", now available in all good bookstores.

Recent Posts

Are you teaching out of field? Your input is needed

A study investigating the realities of out-of-field teachers is seeking participants for groundbreaking research.

4 days ago

New resources to support media literacy teaching

The resources are designed to support teachers to make sure all students are engaged in…

4 days ago

Understanding tic disorders: What every school should know

Tic disorders are far more common than many people realise, and are often misrepresented in…

4 days ago

The modern library: More than a book storeroom

The school library has long been a place of discovery, reflection, and learning. But as…

4 days ago

Build a strong school community to prevent bullying

Is your school an inclusive community that empowers students to recognise bullying and to stand…

4 days ago

Government school enrolments at 10-year low

Performance indicators for the education and VET sectors have just been released with some encouraging…

1 week ago

This website uses cookies.