Maximising Tax Return: Year 2015-2016

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Australian Taxation Office

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  oscargamer on 28/03/2016 - 08:39

  1) you can claim this years expense against next years return
  2) maybe
  3) yes

  there will be heaps more, your accountant will help you

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  [Deactivated] on 28/03/2016 - 09:06

  The biggest earner for me was combining vehicle expenses with salary sacrificing - I saved over 6000 dollars in actual tax by lowering my total taxable income, paying as many things as allowable pre-tax - a bit convoluted so definitely speak to an accountant to make sure you're compliant, set-up properly, and maximising the benefit

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  Mad Max on 28/03/2016 - 12:09

  You can claim up to $300 in work related expenses without receipts. Just a plausible and allowable expense explanation if audited. Over $300 (that includes the sum of all your work related expenses) you need receipts for all.

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  dasher86 on 28/03/2016 - 14:09

  You can claim up to 5000 business kilometers with just a log book.

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  aoujay51 on 28/03/2016 - 16:17

  @oscargamer, thanks mate. Was more interested in knowing how others are saving on their taxes. Even if not so related, but would be good to know:)

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  aoujay51 on 28/03/2016 - 16:18

  @eglathangion, mate that would be just for a novated lease, isn't it?

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    [Deactivated] on 28/03/2016 - 17:46

    I had a novated lease myself yes - but depending on your sector and the rules for your employer, you may be able to sacrifice other things. the idea is you pay whatever you can in pre tax dollars to lower your final income - superannuation is a good bet too as the amount you can sacrifice has been greatly increased. I can now contribute pre tax about $100 per week extra into my super before it even costs me any money while still lowering my taxable income

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      aoujay51 on 29/03/2016 - 00:58

      Thanks @eglathangian, I would definitely try to get more expenses to be prepaid, although the company account department may start considering me as 'nosey'😁

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  aoujay51 on 28/03/2016 - 16:20

  @dasher86, thanks mate. I am sure that I am not eligible as I receive car allowance. But good to know.

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    Findmebargain on 28/03/2016 - 18:44

    +1

    I understand that car allowance is an assessable income. Although the allowance is part of your remuneration package, it is usually shown as a separate item on your Payment Summary.

    Your employer pays you car allowance for the use of your personal car for work purposes. For that extra income paid to you, which is assessable, you should claim deduction against it on your tax return using your the method you have chosen out of the available 4 methods.

    If you have travelled less than 5000kms, you can use the 'cents per km' method which does not require you to maintain a current log book if you have not been maintaining one. However if you expect to do over 5000 kms by 30 June, it may be worthwhile to start keeping one now for a minimum 12 consecutive weeks.

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      CheapskateQueen on 28/03/2016 - 19:17

      McZ is correct. You can definitely claim a deduction for car expenses if you're getting a car allowance.

      If you are, however, being "reimbursed" for your car expenses by your employer, than no, you can't claim the deduction. So it depends on whether you're getting an allowance, or being reimbursed.

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      Chrotzo on 06/04/2016 - 18:06

      +1

      Note that from 1/7/2015 there is only 2 methods available. Cents per Km and Logbook.

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  Findmebargain on 28/03/2016 - 21:53

  I see where you're coming from, CheapskateQueen. I agree that "reimbursement" usually means where you have already incurred/paid an expenses on behalf of your work and your Employer subsequently pays you back upon your submitting a claim with receipts/tax invoice.

  However in this case, where an Employee is claiming car expenses from their Employer (noting the car is owned by the Employee and the discussion does not apply to novated lease arrangement), the terminology "reimbursement" itself may not necessarily be definitive for its tax deductibility or otherwise. Unless the Employer "pre-pays" a set amount as "allowance", the usual practice for such a claim is to submit the number of kms travelled for work in arrears and the Employee is paid on a set rate per km basis. From the Employer's perspective, the deduction for such additional costs is on the basis of such payment being paid to an employee (thus regarded as employment costs and included in Payment Summary and may be referred as "allowance"). The Employer is not entitled claim such costs as the Company's motor vehicle expense as they don't own the vehicles (the employees do).

  Therefore from an Employee's perspective, in order to determine tax deductibility for car expenses incurred (for which your Employer has either pre-pay or reimburse you) a more definitive way is to refer to your Payment Summary. Where such additional payments from the Employer have increased your assessable income over and above the base contracted salary amount, the onus is on you or the Employee to claim and substantiate the relevant deductions against the extra income to ensure you're paying the right amount of tax.

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    aoujay51 on 29/03/2016 - 00:54

    Hi @Mcz & @CheapskateQueen, thanks so much for your replies. Wow, see that's what I am talking about. Getting car allowance from my employer, I always thought that I am not eligible for any car expenses. Now I know:)…..thanks again