Image credit, stevepb Pixabay
<h4>Talking tax might feel about as thrilling as grading a hundred essays, but the joy of knowing you’ve squeezed every cent out of your return? That’s pure last-day-of-term bliss.</h4>
<p>While the rules can shift a little each year, the golden rule remains: know what you can (and can’t) claim. It’s worth doing your homework—this time, for <em>your</em> benefit.</p>
<p>​<a href="https://www.school-news.com.au/latest-print-issue/" target="_blank" rel="noopener"><strong>Read the latest print edition of <em>School News</em> HERE</strong></a></p>
<h4><strong>Changes to individual tax rates</strong></h4>
<p>First, the good news:</p>
<p>Everyone should pay less this year, thanks to some adjustments in the tax rates which became effective from 1 July 2024.</p>
<p>The 16 percent tax rate has been reduced from 19 percent for incomes between $18,201 and $45,000.</p>
<p>The 30 percent tax rate has been reduced from 32.5 percent for incomes between $45,001 and $135,000.</p>
<p>The 37 percent tax rate threshold has increased from $120,001 to $135,001.</p>
<p>The 45 percent tax rate threshold has increased from $180,001 to $190,001.</p>
<h4><strong>What can teachers claim?</strong></h4>
<p>The rules for what you can claim are very simple:</p>
<ul>
<li>You need to have paid your own money for something.</li>
<li>It can’t have been reimbursed by your school or employer.</li>
<li>The expenditure must be directly related to your current position for which you are earning an income.</li>
<li>And you must have records to prove it.</li>
</ul>
<h4><strong>Personal items</strong></h4>
<p>You can claim personal items that have been purchased specifically for work. If you also use them for private use, you can only claim a percentage.</p>
<p>Examples:</p>
<p>Bags or cases to carry work-related items to and from work.</p>
<p>Hats and sunglasses if you predominantly work outside, or helmets and safety glasses if used for work-related purposes.</p>
<p>Sunscreen and PPE including gloves, face masks, hand sanitiser and anti-bacterial sprays or wipes.</p>
<p>Uniforms or anything with a school logo or specialist items required by your employer (such as safety glasses or a lab coat) can be claimed as a deduction. However, if you get a uniform allowance from your employers, you cannot claim.</p>
<p>Laundering or dry-cleaning your occupation-specific uniform or clothing can be claimed, but you should keep all receipts for dry-cleaning.</p>
<h4><strong>Books, fees and self-education</strong></h4>
<p>Seminars, conferences, and training courses that are related to your work as a teacher, that you pay for yourself, can be claimed. Note that courses and education need to be relevant to your <em>current position</em>, but you can claim on fees, registration, textbooks, stationery and travel expenses. You cannot claim on training or education that is solely for the purpose of getting a new job.</p>
<p>Books, journals, magazines or subscriptions where directly relevant to your work, and less than $300 each, can be claimed.</p>
<p>You can claim your annual Teachers’ Registration renewal fees and any other industry-specific fees and memberships, including union fees.</p>
<p>The cost of doing a First Aid course if you are the designated First Aid Officer (and your employer has not reimbursed you).</p>
<p>Working with Children Check and similar.</p>
<h4><strong>Electronics, phone and internet use</strong></h4>
<p>If you use your personal phone or electronic devices for work, you can claim a deduction for the work-related portion of your phone, data, and internet costs. This would include calling or emailing parents after hours, using your home computer to grade papers or make worksheets.</p>
<p>If your work use is minor and incidental and the claim is under $50, you don’t need to keep records. But if you&#8217;re claiming more than $50, you&#8217;ll need to keep some proof. That might be something like an itemised phone bill where you’ve marked your work-related calls and data use.</p>
<p>Learn more about using your computer for personal and work here: <a href="https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/guides-for-occupations-and-industries/r-z/teachers-and-education-professionals-income-and-work-related-deductions/deductions-for-work-expenses/teacher-and-education-professional-expenses-ps" target="_blank" rel="noopener">Teacher and education professional expenses P–S | Australian Taxation Office</a></p>
<h4><strong>Travel</strong></h4>
<p>You cannot claim on trips between home and school, however, if you work in two teaching jobs, you can claim the trip between the first job and the second if on the same day.</p>
<p>If you travel from school to another place for an excursion, day trip or camp – and you do it in your own private vehicle – or you are transporting students to a school/sport related event, you can also claim, so it’s important to keep a record of the date, time and mileage.</p>
<figure id="attachment_23100" aria-describedby="caption-attachment-23100" style="width: 543px" class="wp-caption aligncenter"><img class="wp-image-23100 " src="https://www.school-news.com.au/wp-content/uploads/2023/02/Photo-by-Element5-Digital-on-Unsplash-1024x724.jpg" alt="" width="543" height="384" /><figcaption id="caption-attachment-23100" class="wp-caption-text">Stationery you use for teaching that&#8217;s not supplied by your school, can be claimed. Photo by Element5 Digital on Unsplash</figcaption></figure>
<h4><strong>School Supplies</strong></h4>
<p>The stationery you use for work (not provided by your school) that you use at work or home can be claimed, including diaries, notepads, card, printer paper, ink and pens.</p>
<p>Teaching aids such as stickers, posters, maps, calculators, whistles and stopwatches can also be claimed where relevant to your specific job.</p>
<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.</p>
<h4><strong>Home office</strong></h4>
<p>You may be able to claim a deduction for expenses you incur when working from home (marking, preparing for lessons etc), such as running electricity, phone and internet expenses, and the decline in value of equipment or furniture.</p>
<p>There are different methods you can use to calculate the deductions. Visit <a href="https://www.ato.gov.au/calculators-and-tools/home-office-expenses-calculator" target="_blank" rel="noopener">Home office expenses calculator | Australian Taxation Office</a> to learn more.</p>
<h4><strong>Common misconceptions</strong></h4>
<p>The ATO wants to address several misconceptions that can lead to incorrect claims:</p>
<ul>
<li><strong>$300 deduction myth</strong>: While you can claim up to $300 in work-related expenses without receipts, you must still be able to demonstrate how the expenses were incurred. Think of it as needing to provide a bibliography rather than references… for less than $300 at least.</li>
<li><strong>Travel expenses</strong>: Travel between home and work is generally not deductible (even if it feels like the longest part of your day.)</li>
<li><strong>Bank statements as proof</strong>: Bank statements are insufficient evidence for deductions; you must have detailed records and receipts in case you are audited. If you are claiming more than $300 in deductions, you need to keep records for <em>all</em> deductions for at least five years.</li>
</ul>
<p>On the ATO website, ATO Assistant Commissioner Rob Thomson reminded taxpayers that “exaggerated deduction attempts would not be tolerated.”</p>
<p>“Work-related expenses must have a close connection to your income-earning activities, and you should be prepared to back it up, with records like a receipt or invoice. If your deductions don’t pass the ‘pub test’, it’s highly unlikely your claim would meet the ATO’s strict criteria,” he stated.</p>
<p>According to the ATO, the focus this tax year will be areas where people commonly make errors, such as work-related expenses, working from home deductions and where people have multiple income sources.</p>
<h4><strong>Record keeping</strong></h4>
<p>The ATO says a correct receipt will show all of the following:</p>
<ul>
<li>the name or business name of the supplier</li>
<li>the amount of the expense or cost of the asset</li>
<li>the nature of the goods or services that you purchase</li>
<li>the date you purchase the goods or services</li>
<li>the date the document was produced.</li>
</ul>
<blockquote>
<p><strong>The $300 limit can sometimes prevent teachers from claiming all the items they are entitled to, simply because they have not kept records throughout the year. The simple solution is to ensure that every time you make a work-related purchase (even if you’re not sure it is claimable) you keep the receipt. </strong></p>
</blockquote>
<p>Even better, take a photo of the receipt or use an app like MyDeductions (an app created by the ATO) to keep track on the go.</p>
<h4><strong>Get organised</strong></h4>
<p>The best way to maximise your tax return is to be methodical and organised. Become familiar with what you can (and can’t) claim, and keep records every time you make a purchase.</p>
<p>For more information about the specifics of what teachers can claim, visit: <a href="https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/guides-for-occupations-and-industries/r-z/teachers-and-education-professionals-income-and-work-related-deductions" target="_blank" rel="noopener">Teachers and education professionals – income and work-related deductions | Australian Taxation Office</a></p>
<p>IMPORTANT DISCLAIMER: <em>This article is published as a guide only and does not constitute formal advice. Always seek professional advice before acting in any of these areas.</em></p>

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