Tax Return:: Tax Deductions for Teachers

Hello, this is your tax and super specialist, P&C Tax Professionals.

Did you know that if you happen to be a teacher in Australia there is quite an extensive list of deductions you could potentially include in your annual tax return? Below are some of the expenses you could claim as a tax deduction for the income you generate as a teacher.

<Self-Education Expenses>

If the course you are taking or the conference you are attending directly relates to your current job as a teacher, such self-education expenses will be tax-deductible. For example, a course associated with working with children who have a certain disability or special needs.

On the other hand, if the course you have taken only relates to your current teaching role in a general way or is more so designed to assist you in getting a new job, self-education expenses for such courses will not be tax-deductible.

<Home Office Expenses>

You may also be allowed to claim the costs of running your home office if you are required to work from home.

Some of the home office expenses that are tax-deductible include:

> Depreciation of your office equipment (e.g., printers, computers, tablets, mobile phones, etc.)

- This is for any office equipment that you use for work and which costs over $300. In this case, the cost of the item will be spread across the useful life of the asset.

> Phone and Internet fees (work-related portion ONLY)

> Electricity costs for heating, cooling and lighting

<Car Expenses>

Any motor vehicle expenses you incur as you:

> Drive between two or more separate jobs on the same day (e.g., if you travel from your first job as a teacher to your second job as an admin assistant)

> Drive to and from a different workplace but for the same employer on the same day (e.g., if you travel from your usual school to a different school in order to moderate exam results)

As many of you are aware, you generally cannot include any car expenses that arise as a result of driving to and from your workplace. However, there are limited situations which will enable you to include the car expenses that are incurred while driving to and from your usual workplace. The exception is if you are required to transport bulky tools or equipment for work purposes. For example, if you need to carry specific sporting equipment which are to be used for the school’s sports carnival.

To clarify further, the cost of driving to and from your main workplace is tax-deductible only if the following conditions are met:

> Your employer has asked you to transport the required equipment for work

> The tool/equipment formed an essential part in earning your income as a teacher

> There exists no secure storage space to store the equipment at your workplace, and

> The equipment is indeed bulky (i.e., weighing at least 20kg), which means that it needs to be transported by a motor vehicle.

If you are intending to claim your car expenses as tax deductions:

For the Logbook Method: You must keep a 12-week consecutive logbook which will help you calculate the work-related % of your total car expenses.

For the Cents per Km Method: You must be able to show the ATO how you have used this particular method to arrive at the car expense you are claiming for. You may only claim up to a maximum of 5000km.

<Other Common Work-Related Expenses>

Expenses which are related to your employment and which are essential for you to earn your income as a teacher can be claimed as a tax deduction but only for the work-related portion of the expense.

Some of the other work-related expenses which are commonly claimed by teachers consists of:

> Excursions, school trips and camps

> First aid courses

> Work-related seminars and conferences

> Protective equipment including sunglasses, sun protective hats and sunscreen if you are out in the sun for the majority of the day

> Teaching supplies (e.g., stationery, teaching resources and/or materials which have not been reimbursed by your employer)

> Technical and professional publications

> Teaching registration fees and any other related costs

> Blue card application fees (allowing you to work with children)

> Union and professional association fees.

Expenses that are non-deductible include:

> Any gifts you purchased to give out to students

> Costs to meet students’ personal expenses (e.g., paying for lunch, school excursions or textbooks).

Let’s wrap it up here but if you have any further questions in regards to preparing for your tax return, please do not hesitate to contact us through our Facebook Page (P&C Tax Professionals – Australia) or simply send us an email at pnctax@naver.com.

Thank you and bye for now!