'Cause I'm Looking for The Taxman, Yeah The Taxman

L1aceraussie on 18/10/2016 - 20:28

Hi All,

Long time ozbargain user it has saved me a lot and helped me look wealthy while still being poor but having lots of headphones.
Anyways, I'm investing a lot into myself and my career, and was wanting to try and learn what I can and can't claim for.
Firstly, I want to do educational courses (I'm an engineer) that will further me. How much can I claim on tax, if say, it is a $3000 course? Assume related to my career.
I should have gone to a tax man for this FY as there would have been more stuff that I could have claimed for.

I also want a taxman. South East Suburbs Melbourne. Like the one from Schindler's list, a man who knows how to use the book well.
Does anyone have suggestions for me?

Kind Regards,

Dan

Financial

Comments

  • ozhunter on 18/10/2016 - 21:14

    How much can I claim on tax, if say, it is a $3000 course? Assume related to my career.

    I think it just reduces your taxable income by $3000. So if you're earning over 80k, you'd get $1,110 back, assuming your still in that tax bracket after all other deductions you may have.

  • mskeggs on 18/10/2016 - 22:00
    +2

    Note you can also claim other items related to the course as if it was a job, like travel to and from, a portion of any computer or internet you use, and any other reasonable expenses.
    When I studied years ago I included the cost of a filing cabinet. If it was today I would likely buy an external hard drive or similar to store all my study stuff, so would claim that.
    Also, printing, stationery, postage, accommodation and some meals if it is a conference/course you travel to.
    If it was a sizeable course (e.g. You were doing a phd or something) you might dedicate a room to your study for the multi-year duration - that could make that portion of your rent claimable, and other household expenses. If you had 10% of your home dedicated to your home study, you could probably justify 10% of household costs like power, rates etc. be cautious if you try and claim mortgage interest as that could expose you CGT on your residence when you sell.
    Similarly, if you went to a three day conference in QLD, but then stayed 3 days extra for a holiday, claiming 50% of your flights and accommodation is probably fair.
    The key is you must be able to show the expense was reasonably incurred.

    If you go down the route of maximising deductions, keep good records and ensure the justification is reasonable.

    I'm pretty knowledgeable about tax affairs, though only an amateur, and I get an accountant to do my tax every year - I have found two heads looking at my affairs give a good result, as the professionals stay right up to date with code changes, and also know what other clients have successfully claimed. I can contribute a bunch of dumb questions and what if? scenarios.

    • mskeggs on 18/10/2016 - 22:03

      Hah, exclude my comment about home office occupancy expenses, as that is apparently now excluded.
      I would like to see their reasoning for that exclusion in the example I used (multi-year phd) where the alternative to a dedicated home office would be a rented office on another site which would be fully claimable!

      • Mad Max on 18/10/2016 - 22:57

        Hi mskeggs.
        I would have thought the home office would be calculated as if you were working from home. A percentage of rates, water, and maintenance costs equal to the percentage of area of the home office compared to the whole house plus an amount for heating/cooling/electricity calculated on an hourly rate. You have to keep a representative diary of usage for one month with the number of hours the home office is used and multiply the yearly hours by a $ value. There is a good home office calculator on the ATO website.

        • mskeggs on 18/10/2016 - 22:59

          Me too, and I believe that is how it used to be, but the ATO link above specifically says home office occupancy is not a eligible claim.

        • 1aceraussie on 20/10/2016 - 16:09

          @mskeggs: Thanks mskeggs you've been very helpful! Yes, I think it is only travel and the relevant courses that can be claimed. They have tightened it up a lot. Another thing I was wondering, is since now it is up to $2000, can I claim this much per course I choose to do? Or is this $2000 as a total per year?

        • CheapskateQueen on 20/10/2016 - 23:13

          @1aceraussie:

          There is no cap of any amount.

          The issue is always nexus. Once that is satisfied, you can claim the course cost, whatever it is.

          A lot of incorrect information gets given re tax, even by those with the best intentions. When in doubt call the ATO help line

  • Mad Max on 18/10/2016 - 23:16

    The link your post above says:
    "Home study expenses - If you have a room set aside for self-education purposes, you may be able to claim decline in value of (and repairs to) your home office furniture and fittings, as well as a portion of the heating, cooling, lighting and cleaning representing the period you use the room for self-education activities. Alternatively, you can use a fixed rate of 45 cents per hour of usage instead of keeping individual costs for heating, cooling, lighting, cleaning and decline in value of furniture for that room."
    That is my understanding of how it works.
    Am I missing something?

  • bemybubble on 19/10/2016 - 11:09
    +1

    Like the one out of Schindlers List Ha! +ve for that

    • 1aceraussie on 20/10/2016 - 16:12

      Glad you picked up on it ;)

  • 1aceraussie on 20/10/2016 - 16:12

    Example:
    I work in Project Management for an Engineering and I want to improve my understanding of due diligance, so I decide to do a 2 day course to expand my knowledge:

    http://eeaust.com.au/courses/technical-engineering/engineeri…

    This course costs $1800. How much would be returned to me via tax? If I then went ahead and did another course at the same price, would this still be applicable? I do not understand if $2000 is a threshold per course or a total.
    Cheers loved ones.

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