myDeductions

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Check myDeductions – FAQs for individuals and sole traders or myDeductions – FAQs for tax professionals for answers to frequently asked questions, or ask your question here.

We endeavour to respond to questions as soon as possible during office hours, but some questions may require further investigation. In these instances, we will advise you if there is going to be a delay in responding.

Due to privacy and secrecy laws, we cannot answer questions or disclose information specific to your personal tax affairs on social media. You will need to contact us by telephone to discuss your individual circumstances.

All information provided on our social media pages is general in nature and subject to change over time. Although the information we post is current and accurate at the time, we recommend you always check its currency and relevance to you.
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  • I am a Vet and my pet dog is also a blood donor used at my workplace whenever required. Are his expenses tax deductible?

    Jasmine24 asked 3 days ago
    Based on the information you have provided, you cannot claim a tax deduction for the expenses incurred in relation to your pet dog.

    The tax law considers the choice by an employee to use their pets in a work environment to be a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the deduction requirements. That is, that the expenses were incurred in gaining or producing your assessable income and were not of a private or domestic nature.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • My wife buys a tax deductible item against her taxable income, but pays for it with my money, does she claim the tax deduction on her tax return or do I claim it on mine?

    TrentG asked 7 days ago
    In order to claim a work-related expense as a deduction the following conditions need to be met:

    • you must have spent the money yourself and weren't reimbursed
    • it must be directly related to earning your income
    • you must have a record to prove it.

    If any of these conditions are not met then you will not be entitled to the deduction.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the deduction requirements. In this instance we do not consider the source of the funds used to complete the transaction as relevant in determining if the deduction requirements have been met.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I am entering my income including GST, and my expenses likewise. Is it possible to see a breakdown of these figures with the GST separate, as I would not count GST as part of my income! So for example on the records screen, it would be much better if it had columns for income and incoming GST, and expenses and outgoing GST, This would greatly increase the utility of the app for me. As it is, I can only see the GST component by tapping through to the individual transactions - so my income is actually displaying as 10% more than it should be - and I cannot use the app to help me with my GST reporting as it does not include those monthly incoming and outgoing GST amounts. As a result I need to keep continue tracking my GST in a separate spreadsheet where this app could easily provide that information to me.

    Myth asked 7 days ago
    Thank you for your feedback. Your suggestion will be considered in future updates to the myDeductions tool. At this stage you can see the breakdown in a CSV file by using either the backup or share via email functions.
  • Hello. I'm a social media Influencer in the area of fashion & styling. This requires the purchase of accessories and clothing to review and style, particularly new collections that are launched. They are genuinely used for no other purpose than taking pictures to post on social media. Being a new area, I can't find any information on how these items are to be treated in terms of business assets & tax deductibility. Please advise?

    needbetteralias asked 11 days ago
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or domestic in nature.

    In general, clothing expenses are not deductible unless they are for protective clothing, uniforms, or occupational-specific clothing.

    If you feel that there is sufficient connection between the clothing and accessory expenses you buy and earning your assessable income you can apply to the ATO for a private ruling. This ruling will provide advice which is binding on the Commissioner of Taxation in relation to your specific facts and circumstances.

    Further information about applying for a private ruling can be found on our website at Applying for a private ruling.
  • Hi, where do I add a donation details? Do I add as an expense? If so, what type? Thanks in advance

    Fian asked 9 days ago
    You are able to claim a tax deduction for a gift or donation that meets four conditions, detailed on the webpage Gift and donations.

    Once you have determined that your gift or donation meets all four conditions, you can follow the process below to claim your tax deductible gift or donation on our online service, myTax accessed through your myGov account.

    In your online tax return lodgment, step 3 labelled as Personalise return, you will need to select the items - You had deductions you want to claim and then Gifts, donations, interest, dividends, and the cost of managing your tax affairs.

    In the next step of your online tax return lodgment, step 4 labelled as Prepare return, you will have to select Add/Edit of the label Deductions.

    For the label Gifts or donations, select Add.

    Type in the Amount and Your description of the gift or donation, and select Save.

    Ensure to select Save and continue on the Deductions page to continue filling in your online tax return.

    However, if you are filling in a paper Tax return for individuals form, your tax deductible amount of gifts and donations must be placed in label D9, under Deductions.

    For more information, please see Gift and donations and D9 Gifts or donations 2017.
  • I'm employed as a Peer Support Facilitator where you have to have lived experience of mental health issues to qualify for the position (I have Complex PTSD). I'm currently seeing a counsellor for my Complex PTSD can I claim that cost as a tax deduction? Thanks.

    Kate B asked 9 days ago
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or domestic in nature.

    In general, medical related expenses, such as counselling, are of a private nature and not deductible.
  • Hi, I now work in a job where my dogs are required to attend my work for assistance with training demonstration and to aid other dogs behaviour concerns. Can I claim their expenses on tax?

    Sarah Ogden asked 12 days ago
    The answer will depend on your circumstances and whether the dogs have been trained as working dogs to carry out specific tasks.

    The choice by an employee to use their pets in a work environment is a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.

    Where an animal is acquired and trained as a working dog (i.e. cattle dog, police dog etc.) and used solely for that specific income producing purpose, a deduction for expenses incurred relating to that animal may be available.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the deduction requirements. That is, that the expenses were incurred in gaining or producing your assessable income.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I'm a doctor that works at a large teaching hospital. I also have a mortgage in a house where I live close to where I work. As part of my work I was seconded to work at a hospital 6hrs away for a period of 6mths. As such I rented a place near the secondment hospital for 6mths and returned periodically to maintain upkeep on my mortgage property. No one lived in the mortgage property whilst I was away. I then returned to my normal place of work after the 6mths. Can I claim the rent at the seconded area as a tax deduction?

    Sk1985 asked 14 days ago
    Based on the information you have provided, you were living away from home for the period of your secondment. In these circumstances your rent would be a private living expense and would not be deductible.

    You have not stated whether you received an allowance from your employer to compensate you for the additional cost of accommodation while you were on secondment. However, if you did, that allowance would be a living away from home allowance. Living away from home allowances are fringe benefits and are not included in the income of the recipient. This means recipients do not show these allowances in their tax returns (and they also cannot claim a deduction for the costs of them living away from home).

    Further information about the deductibility of accommodation expenses is available on our website and in draft Taxation Ruling TR 2017/D6 – Income tax and fringe benefits tax: when are deductions allowed for employees’ travel expenses?

    If you require further information you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Can I claim competition entry fees for awards to do with my profession?

    Garth asked 13 days ago
    We would need more information to answer your question, but generally fees paid to nominate for an award in a profession are of a private nature and not deductible.

    However, in circumstances where a prize or award is included in assessable income, the costs incurred in gaining the prize or award may be an allowable deduction.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Is there anyway to add more deductions after uploading i have realised i have a number I have missed but already uploaded them last night. When i used the ato app my deductions it told me I can not edit. I have approximately another $500 to add

    Stuart Geddes asked 15 days ago
    The myDeductions tool only allows one upload per financial year. You will need to enter your additional deductions into myTax manually.
  • I had to complete a medical and fitness test when I was offered my current job in the medical field before I could work my first shift. It was through a private company who sent me a receipt, is this claimable?

    Tahlia asked 22 days ago
    In order to claim a deduction, the money you spent must be directly related to earning your income and the expense must not be private or domestic in nature.

    Expenses incurred to gain work are not allowable deductions, as the money has been spent before you started earning income from the job to which they relate.

    Based on the above, the money spent on your medical expenses and the fitness test are considered to be private. Consequently they are not allowable deductions.

    For more information, please see Deductions you can claim.
  • I have a specific question for and Individual and work related deductions. My spouse had a medical issue with her hips that prevented her from working. In order to return to work, she required surgery on both hips. She had to go on sick leave before the ops and then after. Can this be claimed as a deduction as she was unable to continue her work without it being done?

    Pope asked about 1 month ago
    We would need more information to answer your question, but generally medical expenses, are of a private nature and not deductible. There would also need be a direct connection between the expenses of surgery with your spouse’s occupation for it to be an allowable work-related deduction.

    Although the medical issue with your spouse’s hips prevented her from working, the surgery and associated medical expenses would generally be considered a private expense.

    However, in certain circumstances, you may be able to claim the net medical expenses tax offset. This is a percentage of your net medical expenses relating to disability aids, attendant care or aged care. The tax offset is income tested and the percentage of net expenses is determined by your adjusted taxable income and family status.

    For more information, see Medical expenses and the Net medical expenses tax offset calculator.
  • Good Afternoon, As a full-time ADF member, I've had different advice from 2 tax agents regarding claiming the following: 1) work related travel to work related medical appointments, and 2) work related debt incurred due to no fault of my own - negligence of defence to cancel allowance, and recovery of fees associated with retaining licences. To set the scene, I have been working from home over past 12 months due to serious work related illness. My home location is 6 hours from work - return. Normally work would send a driver to drive 3 hours, pick me up and take me to the appointment, return me home and then drive back to the work location 3 hours away. During this period, I attended some related medical appointments at my own expense due to inability for Defence to provide a driver or I drove myself. Question 1. is work related medical travel expenses claimable in the context of above or not? Question 2. due to my illness and subsequent absence, am I accountable for a allowance debt which was incurred due to no fault of my own, which defence should have cancelled after discharge from hospital and long-term medical absence? Furthermore, my partner had a casual job for about 6 weeks earlier this year and spent a couple hundred dollars on safety equipment (safety boots and hi-vis clothing) for this job, is she entitled a tax refund for these purchases as well as super co-contribution? Thanks in advance. Rob Emerson

    RobEmerson asked 29 days ago
    Question 1.
    is work related medical travel expenses claimable in the context of above or not?
    We would need more information to answer your question, but generally costs of travel to medical appointments are expenses of a private nature and not deductible. If the medical treatment was covered by your employer or its insurer it is not clear why you would have to incur costs to travel to medical appointments, i.e. any travel expenses you incurred would normally be reimbursed to you by your employer or by the insurer.

    Question 2.
    Due to my illness and subsequent absence, am I accountable for an allowance debt which was incurred due to no fault of my own, which defence should have cancelled after discharge from hospital and long-term medical absence?
    Your question 2 is not entirely clear, but we understand you to be saying that you were overpaid an allowance during a period when you were off work on sick leave, and the allowance related to certain licences you held. Your employer subsequently sought reimbursement of the overpaid allowance from you. The sick leave was occasioned by an illness or injury you sustained at work. You are asking whether repayments of the overpaid allowance are deductible to you.

    Overpaid salary or allowances are not assessable income to an employee, and repayments are not deductible.

    Other questions (safety equipment deductions and super contributions)
    Expenditure on safety boots and hi-vis clothing is deductible (i.e. it reduces your taxable income) if these items are reasonably necessary due to the nature of the work being performed.

    The ATO website has information about eligibility for the super co-contribution, at the link below.

    Eligibility for the super co-contribution
  • I am working on a sheep property and use my dogs solely for work. Am I able to calm the purchase of my working dogs on my tax?

    Theveers asked 29 days ago
    The answer will depend on your circumstances and whether the dogs have been trained as working dogs to carry out specific tasks.

    The tax law considers the choice by an employee to use their pets in a work environment to be a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.

    Where an animal is acquired and trained as a working dog (i.e. cattle dog) and used solely for that specific income producing purpose, a deduction for expenses incurred relating to that animal, including the cost of buying the animal, may be available. A working dog is considered to be a depreciating asset for taxation purposes. As the ATO does not have a published rate for decline in value of a working dog you will need to determine the effective life of the working dogs if a deduction for depreciating their costs is available to you.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to show how you calculated your deduction and to demonstrate that you meet the deduction requirements.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I worked as a Uber driver for about 6 months of the year, I purchased a vehicle to use with uber, I claimed it on my bas for that 1/4 for 80% business use, now doing my income tax for the year I haven't done uber for months.. what percentage can I put on my tax return, still same as bas or lower since I haven't done uber for months?

    26berto1979 asked about 1 month ago
    You will be required to substantiate your car expenses for income tax purposes by using one of two methods - the cents per km method or the log book method.
    1. Under the cents per km method you cannot claim an additional deduction for car expenses such as depreciation as the cents per km incorporates a notional depreciation amount.
    2. Under the logbook method you can claim car expenses such as depreciation for the business use of the vehicle. You are required to keep records including a log book to determine the business use percentage

    We are assuming you have used the log book method to determine your business use percentage and you have kept log book records for a continuous period of at least 12 weeks in the first year that you used this method. See Logbook-method for requirements for a valid logbook.

    The 12 week period must be representative of your business use over the whole year. Importantly, if there has been any variation of the pattern of use during the year this must also be reflected in your business use percentage. Note that the odometer reading of the car must be kept at the start and end of each income year when using the log book method. Generally, it would be expected that ride sharing data available to Uber drivers would provide sufficient records necessary to comply with the logbook method requirements.

    As you have stopped driving for Uber for several months the 80% business use will not be representative of your business use of the car for the full year. Accordingly, you will need to vary your business use percentage to reflect the full year. A reasonable business use percentage can be calculated by the total business km’s travelled while driving for Uber divided by the total km’s your car travelled for the full year. As an example, you may have driven for Uber for 5,000 km’s but drove a total of 20,000 km’s in the year. Therefore, in this example, 5,000 km is divided by 20,000 km to result in a 25% business use percentage.

    When completing your tax return please refer to the ATO website: D1 Work-related car expenses 2017, as this provides further information on the log book method.
  • I am a army reserve SNCO (sergeant) who is required to pay monthly compulsory mess subscriptions as a member of a mess. Are these fess tax deductible and if so under which section of the Act does it fall please? Thanks you.

    SW asked 29 days ago
    Compulsory mess subscriptions are deductible under section 8-1 of the Income Tax Assessment Act 1997 to the extent that they are not for food, drink or entertainment as they are considered private expenses. Refer to Taxation Ruling TR 95/17 which covered worked related deductions for employees of the Australian Defence Force.
  • can you claim tax for a drug and alcohol test that the company has asked of you but your paying for it out of your pocket.

    milly asked 29 days ago
    In order to claim a deduction, you need to determine whether the expense you have incurred is private or domestic in nature.

    If you incurred the cost of a drug and alcohol test prior to employment, the cost of the test would be considered a private cost and would not be allowed as a deduction.

    Generally, such tests that are conducted on the job would be reimbursed by the employer. If they are not reimbursed, you would usually be able to claim the cost of the test.
    For more information, see Deductions you can claim.
  • If you add features to your car for work purposes for example; a tray and a toolbox can you claim it as a deduction

    Gb5555 asked about 1 month ago
    Features added to your car for work purposes, such as a tray and toolbox, are considered depreciable assets, and can be written off over a period of time as tax deductions.

    For more information on how to calculate deductions for the cost of depreciating assets, see Guide to depreciating assets 2017.
  • I work as a Large Animal Veterinarian in country NSW. I have two working dogs that are used to round up cattle and are also used blood donors for the patients in the Veterinary Hospital. These working Dogs also guard my Work Truck and Home during the Day/Night as I work irregular hours. Can I claim their medical costs/food/parasite control as a deduction?

    Ed212 asked about 1 month ago
    The answer will depend on your circumstances and whether the dogs have been trained as working dogs to carry out specific tasks.

    The tax law considers the choice by an employee to use their pets in a work environment to be a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.

    Where an animal is acquired and trained as a working dog (i.e. cattle dog, police dog etc.) and used solely for that specific income producing purpose, a deduction for expenses incurred relating to that animal may be available.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the deduction requirements. That is, that the expenses were incurred in gaining or producing your assessable income.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Hi, I have recieved my tax refund but have not recieve my deductions. Is there something that i need to do in order for me to get that? or deductions claims comes later?

    Jeph asked about 1 month ago
    Deductions are claimed as part of your tax return and form part of your total refund. Deductions are usually claimed at the same time as when you lodge your tax return.

    If you've made a mistake or missed claiming some deductions that you are entitled to, on an income tax return you've already lodged, you can request an amendment to your income tax assessment. If you think we've made a mistake processing your return, you should phone us to see if we can sort it out without the need for an amendment. For more information, see: Correct (amend) an income tax return.
  • I work as a restaurant manager for two upmarket restaurants in the city. As manager i am in charge of ordering the amount of food needed every night and the quality of food and the service of staff. Can i claim eating at competitors restaurants as a deduction as i am the manager and my boss expects me to keep up with the current trends regarding food and service standards. I am required to do this as it is a very competitive industry and if i do not i might miss the latest trend.

    James Allgood asked about 1 month ago
    In general, the cost of food or meals is a private expense, and therefore cannot be claimed as a tax deduction.

    However, a deduction may be allowable where there is sufficient connection between the food or meal expenses incurred and the manner in which a taxpayer earns their assessable income. For example, a partial deduction for meal expenses was allowed to a restaurateur who travelled to famous restaurants and studied their method of operation and food and drink presentation.

    If you would like binding advice in relation to your specific facts and circumstances, you can apply for a private binding ruling. The ruling application form is available from the ATO website.
  • I have to take majority off my tools to work and back in my own car/ute, my ute is my own personal car. Can I claim the price of the my car on tax and the kilometers I travel to and from work on tax?

    Billy111 asked about 1 month ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are also of a private nature. In limited circumstances an employee can claim the costs of travelling between their home and a work location if the travel is in performing their duties.

    In some limited circumstances an employee, due to the special demands of the work, may be able to claim such travel. One special circumstance is where all of the following apply:
    • your employer requires you to transport bulky tools and equipment between your home and the work site,
    • you use the bulky tools and equipment to do your job at the work site, and
    • there is no secure storage area for the equipment at the work site.

    Whether the equipment is bulky is a question of fact and degree. It is not possible to determine from the information provided whether your equipment and tools are bulky.
  • Hi, I have participated and paid for 2 professional development courses run by Landmark Forum. I am unsure if I can claim this on my tax as it was not specific towards my current role as a Project Coordinator/Specialist - but the purpose of the education was for leadership skills and general proffessional development. Are you able to clarify what can and cant be claimed for development and education?

    Jessica Maya asked about 1 month ago
    Thank you for your question regarding claiming a deduction for self-education expenses. You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment, even though it might be generally related to it, or enables you to get new employment.

    Further information about self-education expenses is available from our website.
  • I use Uber to get to work sometimes. Can i claim this on tax? And if yes how?

    Arya asked about 1 month ago
    You can claim vehicle and other travel expenses directly connected with your work, but generally you can't claim for normal trips between home and work – this is considered private travel.

    Please follow the link below for more information about travel between home and work. Vehicle and travel expenses.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Can I claim my Uber's to and from work?

    about 1 month ago
    Trips between home and work are generally considered private travel. However, you can claim deductions in some circumstances, as well as for some travel between two workplaces.
    Please follow the link below for more information about travel between home and work.
    Travel between home and work and between workplaces

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • If a work quiet far from home and I travel with uber and public transport I able to claim them all on tax Thanks

    rachaellee asked about 2 months ago
    You can claim vehicle and other travel expenses directly connected with your work, but generally you can't claim for normal trips between home and work – this is considered private travel.

    Please follow the link below for more information about travel between home and work. Vehicle and travel expenses.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Hi there. I am currently going through the process of registering for UBER. I am registering my ABN. As part of the process I am purchasing a vehicle for around $15000. My question is can I claim the cost of the vehicle this financial prior to starting with UBER and if so how much am I likely to see returned??

    Andyo asked about 2 months ago
    Based on the facts you have provided, you will not be able to offset the cost of the vehicle you purchased against ‘non-Uber income’ you earned in the 2016/17 year. Taxpayers using a car to produce income can generally claim deductions for depreciation over the effective life of the car, based on their proportion of income producing use. In some circumstances taxpayers can claim the full cost of purchases as an instant asset write-off deduction, but generally for small business taxpayers any such deductions are ‘quarantined’ by the non-commercial loss rules and are only able to be offset against income from that business activity (e.g. your Uber income).
  • I went to a private drug and alcohol rehabilitation centre which is a registered Australian business based in Chiang mai in Thailand. Am I able to claim the cost of treatment back on tax?

    Bazzacom asked about 2 months ago
    You will not generally be able to claim an income tax deduction for expenses associated with attending a drug and alcohol rehabilitation centre as this would be considered a private expense. Medical expenses and other expenses to assist someone engaged in rehabilitation are nearly always a private expense and not deductible. The following link provides information about deductions: Deductions you can claim

    You can claim an offset for some medical expenses relating to disability aids, attendant care for a person who has a disability and aged care but your attendance at a drug and alcohol rehabilitation centre does not fall within one of these categories. The following link provides information about the Net Medical Expenses Tax Offset: Medical expenses.
  • I work in a FIFO travel arrangement at a remote South Australian site. My employment contract states my Point of Hire is Sydney. My employer originally paid for my flight from Sydney to Adelaide and then Adelaide to site. This year they no longer pay for the flight from Sydney to Adelaide, due to my contract Point of Hire, can I claim this as a tax deduction?

    Luke asked about 2 months ago
    You can claim the flight from Sydney to Adelaide as a deduction if:
    • you are travelling in the performance of your duties, under the direction and control of your employer, from when you check in at Sydney airport; and
    • you actually incur the cost, i.e. you pay for the flight and your employer does not reimburse your costs.
    Circumstances that indicate you are travelling in the performance of your duties from Sydney include:
    • you travel during work time, i.e. you ‘clock on’ when you check in at Sydney;
    • your remuneration covers the time spent travelling; and
    • you are under the direction of your employer from when you check in at Sydney, for example, you have to comply with code of conduct, etc.

    Note that the travel from your home to Sydney airport remains a private expense and is not deductible.

    Remember to keep records of your travel expenses. If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    The ATO website has more information about travel expenses and income and deductions. If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I am a Therapeutic Youth Worker studying psychology at honours level. This study builds on my skills required to do my job. Am I able to claim self-education expenses related to my study (travel to intensive schools, internet access for online study)

    Sam1 asked about 2 months ago
    Thank you for your question.

    Whether you can claim your self-education expenses will depend on your particular circumstances. You can claim your study expenses if all of the following are satisfied:
    • you are employed on a full-time or part-time basis, rather than working casually to support yourself while studying
    • you can show that you will gain a formal qualification that will be used in the course of your current employment
    • there is a direct connection between the study and your current work activities; that is, the study must:
      • maintain or improve the specific skills or knowledge you require in your current employment
      • result in, or is likely to result in, an increase in your income from your current employment.

    You cannot claim your study expenses if your study has limited use in your current occupation, even though it may give you new skills that can be used in obtaining new employment.

    More information on self-education expenses is available on our website www.ato.gov.au. In particular, you can find general information on self-education expenses here and more detailed information here.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    If you require further information you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I work in a science lab where on any given day I am exposed to hazardous chemicals, liquid nitrogen, sharps, heavy equipment etc. As such, closed in footwear is a requirement of my job. Can I claim for footwear, especially if I choose footwear that is resistant to the hazards of my job (i.e.rubber soled leather boots)?

    Beaker asked about 2 months ago
    Thank you for posting your question about claiming expenses associated with buying footwear. For income tax purposes, expenses of this kind would be considered under the general tax deduction rules.

    The following link provides information about deductions you can claim:
    Deductions you can claim

    Importantly, you cannot claim an income tax deduction for an expense which is private or domestic in nature.

    You can claim for clothing and footwear that you wear to protect yourself from the risk of illness or injury posed by your income-earning activities or the environment in which you are required to carry them out. To be considered protective, the items must provide a sufficient degree of protection against that risk.

    Factors we may consider include:
    • is the quality of the item different to items of a comparative nature used for domestic or private purposes
    • does the use of the item in the work place make it unsuitable for private or personal use
    • is the use of the item a requirement of your employer, work related safety laws or an industrial agreement.

    You can't claim the cost of purchasing or cleaning ordinary clothes you wear for work that may also protect you. For example, you can't claim for normal, closed shoes, even though you wear them to protect your feet. Ordinary clothes (such as jeans, drill shirts, shorts, trousers, socks, closed shoes) are not regarded as protective clothing if they lack protective qualities designed for the risks of your work.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    For more information on how the law applies to work related protective clothing expenses see Taxation Ruling TR 2003/16 – Income tax: deductibility of protective items.

    If you require further information you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I am an Australian resident for tax purposes. I am planning on selling some shares in NZ that dad left me in his will. Will I have to pay tax on these in Australia? If so, what if I leave the money in NZ to pay a student loan?

    robbo asked 2 months ago
    As a resident of Australia for taxation purposes you are required to declare your world-wide income in your Australian income tax return. A taxpayer who sells shares will be subject to tax under the capital gains tax (CGT) provisions. If a taxpayer sells shares for more than the acquisition cost they will make a capital gain and this gain will be taxed at their marginal tax rate. (CGT is not a separate tax.)

    Generally, CGT is disregarded when shares from a deceased estate are transferred to the beneficiaries but a CGT liability will arise when the beneficiary (you) disposes of the shares by either selling them or transferring them to another person.

    You will need to seek advice from the New Zealand tax authorities to see if any tax liability will arise when you sell the shares. If this is the case, you may be entitled to a Foreign Income Tax Offset in Australia. This is a credit for tax paid on the same income in another country.

    Further information about Capital gains tax and the Foreign income tax offset rules are available on the ATO website.

    It does not matter if the proceeds of the shares are transferred to Australia or are used to pay off a student loan or are put to any other use in New Zealand. The tax treatment will still be the same.
  • I have a medical response assistance dog who accompanies me to my work place- without her, I am less able to work. She is not a pet or a therapy dog, she is medical equipment that enables me to work. She is trained through a gov recognised organisation, but owned by me and training/registration costs paid by me. Am I able to claim her registration and yearly assessment (Public Access Test) fees through my tax? Thank you kindly

    EvieEvie asked 2 months ago
    For income tax purposes, expenses of this kind are considered under the tax deduction rules or the Net Medical Expenses Tax Offset rules. The following link provides information about deductions:
    A person will not generally be able to claim an income tax deduction for expenses associated with a medical response assistance dog. Medical expenses and other expenses to assist someone with a disability are nearly always a private expense and not deductible.

    However, you may be entitled to a medical expenses tax offset, depending on your overall tax position.
    You can only claim this offset for expenses relating to disability aids, attendant care for a person who has a disability and aged care. We consider that the purchase and maintenance of a qualified assistance dog for assisting people with a disability (but not for social therapy) is an example of a disability aid.

    Net medical expenses is the amount you have paid less any refunds you receive from Medicare or a private health insurer for eligible medical expenses over the tax year. For the 2016-17 income tax return, if you have over $2,299 in eligible out-of-pocket expenses, the ATO allows a 20% tax offset (that is, you get back 20 cents in the dollar) on anything over this threshold. However, you can’t get a refund if this exceeds the tax payable. There is no upper limit on the amount you can claim. This offset is income-tested and if your adjusted taxable income is above $90,000 for singles and $180,000 for a couple or family, the tax offset reduces to 10% and the expenses threshold increases to $5,423.

    The family income threshold is increased by $1500 for each dependent child after the first.
    The tax offset will cease after the 2018-19 tax year.
    See details for eligibility in claiming the offset entitlement at T5 Total net medical expenses for disability aids, attendant care or aged care 2017.
  • I work as a junior doctor in Western Australia. My normal workplace is hospital A by whom I am employed. For 12 weeks I was required to work at Hospital B (8km further away than Hospital A). Am I able to claim km for the period I was required to work at Hospital B, as it was a temporary alternative workplace?

    Catherine18 asked 2 months ago
    You cannot claim a deduction for the costs of travelling between home and work as they are not incurred in the course of earning your income and are also of a private nature. This includes travel to the temporary alternative workplace. Travel directly between workplaces is deductible providing neither is your home. Therefore, if you work at one hospital and travel to the other hospital to continue working, the travel costs are deductible.
  • I am an architect specialising in environmentally sustainable builds and I am wanting to build a display home to show my work if I live in it can I claim anything through my business?

    Design asked 2 months ago
    The answer will depend on your circumstances. A deduction is only available if an expense is directly related to earning your assessable income. See ato.gov.au for more information regarding income and deductions for business, and tax implications for property used in running a business.

    There are a number of issues to consider including:
    • Would the display home also be your place of business?
    • What expenses, if any, are related to income? (You may have to apportion between business and private use).
    • What expenses, if any, are capital expenses?

    Capital Gains Tax and GST implications of buying and selling a home should also be considered.
  • I live in Adelaide a travel to Perth via flight and then to Barrow Island. The point of hire is Perth but I am required to carry my own ppe and tools to and from site. Am I able to claim my flight from Adelaide to Perth and Perth to Adelaide if I have a letter from my employer stating I am required to carry those items to and from site.

    Sam89 asked 3 months ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are also of a private nature. In limited circumstances an employee can claim the costs of travelling between their home and a work location if the travel is in performing their duties. From the information you have provided, your travel between Adelaide and Perth is not in performing your duties.

    In some other limited circumstances an employee, due to the special demands of the work, may be able to claim such travel. One special circumstance is where all of the following apply:
    • your employer requires you to transport bulky tools and equipment between your home and the work site,
    • you use the bulky tools and equipment to do your job at the work site, and
    • there is no secure storage area for the equipment at the work site.

    Whether the equipment is bulky is a question of fact and degree. It is not possible to determine from the information provided whether your equipment and tools are bulky. Further, to get a tax deduction, it is not enough for you to choose to carry tools and equipment. If tools and equipment are made available to you on Barrow Island and you choose to use your own instead, you cannot claim the cost of your travel.

    Given the remoteness of Barrow Island, the large number of employees flying in and out, the logistics of them carrying their own bulky tools and equipment on aircraft, and the fact the island is a Class A nature reserve with strict quarantine guidelines in place to help protect its unique environment, it would be unusual and surprising for employers to require this.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the conditions above.
  • I own a house in Townsville and work full-time as a Builder in Townsville and in the weekends I travel from Townsville to Paluma (87km's) and hire a room for the weekend where I am employed by a cafe as a barrister on Saturday and Sunday. Can I claim a tax deduction for my accomodation expense in Paluma?

    Deductionhelp asked 3 months ago
    For an employee to be able to claim a deduction for accommodation expenses, the expenses must be incurred in travelling in the course of doing their work. In the circumstances described, your costs of accommodation at Paluma are not deductible. They are a cost that is preliminary to you working as a barista and are not deductible. Likewise, transport costs you incur in travelling between Townsville and Paluma would not be deductible as the travel is from your home to a second workplace and is preliminary to the work.
  • I bought the car in the last week of the january 2017 for $7500 in cash and then got it transfered under my name. I bought it for driving with uber. I started driving casually in feburary but i forgot to claim the gst deduction in my bas which i lodged in march 2017. What should i do now ?

    Syed Ali asked 3 months ago
    Provided you are carrying on an enterprise when you bought the car, you may be able to claim a GST credit for the GST you paid in the price of the car. This GST credit would need to be reduced by the percentage you will be using the car for private use. The percentage of business use of the car may be claimed as a GST credit. Ride sourcing, GST and carrying on an enterprise.

    For example, since you drive casually you may intend to use the car for about 15% business use. Whatever percentage you work out should be documented or recorded, such as by keeping a logbook for 12 weeks.

    For you to claim a GST credit, the seller of the car must have been registered for GST and you must have a tax invoice. If so, you would work out the GST credit that you may claim this way:

    $7,500 x 1/11 = $681.81. Reduced for private use to the business use percentage: $681.81 x (% of business use).
    As per the example $681.81 x 15/100 = $102.27.

    It would be reasonable to apply the same percentage that you work out to other vehicle expenses such as tyres, cleaning and servicing.

    As the GST credit was left out of your January BAS by mistake and you have overstated the GST you needed to pay for that BAS, under the ATO error correction guidelines, you can simply include the GST credit in the next BAS if you have a tax invoice and are not under audit by the ATO.

    For more information:
  • I am an Uber driver, who resides at Penrith. As most of businesses are around the inner suburbs and the city area, I aim to drive to the city. From the time I left Penrith, I turn on my Uber app and ready to pick up passenger. Unfortunately, some days, I don't have passenger until i reach Strathfield area. Question: 1. From Penrith to Strathfield, can I claim the kilometres as business-related? The purpose of the travel is solely to find passengers. 2. Whether the incurred kilometres as a result of driving around to find passengers can be claimed as business related or not?

    RSay asked 8 months ago
    Most ride-sourcing drivers use their car for both personal and business use. This means you will need to apportion any car expenses deductions between personal and business use.

    There are two different methods you can use to claim car expenses deductions. More information is available about the different methods on our website by following this link www.ato.gov.au/ridesourcing. Example 4 is particularly relevant to your situation.

    In your question you mention claiming kilometres so the following answer assumes you are using the cents per kilometre method.

    When calculating expenses for a journey you need to remember that you cannot claim expenses that are of a personal or domestic nature. Simply turning on the ride-sourcing technology platform or application while driving to places for a personal or domestic purpose does not automatically mean that you will be able to claim the kilometres travelled in those journeys.

    If the sole intent of your travel between Penrith and Strathfield is to produce ride-sourcing income you will be entitled to claim a deduction for the kilometres travelled. Similarly if the sole purpose of driving around the city is to produce ride-sourcing income you can also claim kilometres associated with that journey.

    If at any time during a journey you decide that business is slow and decide to meet friends, do some shopping of participate in other activities of a personal or domestic nature, then the purpose of the trip changes from an income-producing purpose and you would not be entitled to a deduction from that point. You would need to take an odometer reading at the point at which the purpose of the travel changed from an income producing purpose to a personal trip.
  • I am Economist and works 4 days at home and 1 day in the office (full time) as a Senior Financial Analyst. Am I allow to claim Occupancy Expenses such as a portion of my mortgage interest of my home? I have a private study at home. I have a letter from the employer where specify my conditions. The company is located in Two Wells, South Australia, and most of the time I worked with people overstate.

    MonicaM asked 10 months ago
    Thank you for your question.

    Based on the level of detail you have provided you cannot claim a deduction for occupancy expenses. You are entitled to claim a deduction for running expenses.

    Your occupancy expenses retain a private and domestic character and therefore are not deductible. Individuals can only claim occupancy expenses in two, very limited circumstances:

    • Where the space in the home is a place of business, for example a doctor or dentist surgery or a hairdresser studio in a home.
    • Where no other work location is provided to an employee by an employer and the employee is required to dedicate part of their home to their employer’s business as an office.

    In your case you maintain a private study and not a place of business for your employer. Further, you work out of your employer’s office one day per week which means you have an alternative work location.

    You are however entitled to claim a deduction for running costs. You are able to claim a deduction for the cost of expenses such as electricity for heating, cooling and lighting, cleaning costs, decline in value (depreciation) and the cost of repairs to furniture and furnishings in the area being used. However, you are only able to claim a deduction for the additional expenditure you incur on running expenses as a result of your income producing activities.

    It is important that you keep good records of the expenses and your use of the area when you make any claim for home office expenses. You can find the information you need on keeping records here.

    For more information on how the law applies to home office expenses see Taxation Ruling TR 93/30 Income Tax: Deductions for home office expenses, also available on the ATO website - here.
  • Is medical expenses paid by the employer for the employee's spinal cord rehabilitation in order to perform his job deductible?

    harrytd asked 4 months ago
    By providing rehabilitation for an injured employee, the employer hopes the rehabilitation will enable the employee to continue to and increase the range of duties that he can perform in his employment.

    Although the employee will receive a personal benefit from this expenditure, the business also stands to benefit by retaining the services of its employee. The payment of this expenditure is intended to improve the value of the employee to the business. As a result, the outgoing is employment related and necessarily incurred in the carrying on of the business and, therefore, would be considered deductible under section 8-1 of the Income Tax Assessment Act 1997.

    Further to consideration of deductibility for income tax purposes, fringe benefits tax (FBT) must also be considered. Broadly, FBT potentially arises when a benefit is provided to an employee (and/or associate of the employee) by an employer where it is provided in respect of that employee's employment relationship.

    In this situation, the employee is the one who is liable for payment and will have incurred the expense. The employer is proposing to pay the expenses incurred by the employee, namely the rehabilitation expenses. It is considered that a fringe benefit will arise as a result of the provision of such a benefit.

    In this case, the provision of the fringe benefit will be taxable in full as the 'otherwise deductible rule' pursuant to section 24 of the FBTAA would have no application. The 'otherwise deductible rule' considers if the employee had incurred the expense in their own right would an income tax deduction have been available to that employee. In this situation, the expenses would not have been an income tax deduction to the employee as it would be considered a private expense.

    Exemption from FBT is provided in a number of circumstances. Examples of exemptions that could potentially apply in your case are:
    If you require further information you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I bought a puppy to be trained as a therapy dog for my workplace ... in particular for the children with additional needs to assist us in our treatment delivery. The dog works every day except has most weekends off. Can I claim vet and training and any of his living expenses etc. I personally pay for a trainer to come to the workplace to teach staff how ot train him etc. thank you

    Therapy asked 7 months ago

    Thank you for your query about the purchase and maintenance of a puppy for the purpose of being trained and used as a therapy dog for your workplace, and whether you are eligible to claim a deduction for these expenses.

    Based on the information provided, the tax law does not allow the pet maintenance expenses to be claimed as work-related deductions, even if you use the dog at work in the manner described.

    The tax law considers the choice by an employee to use their pets in a work environment a personal choice, and a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income. Consequently, in your circumstances, you cannot claim a deduction for the purchase and maintenance costs of your puppy.

    Note that there are some employment situations where the a dog is owned by the employer or business, and employees may be required to incur expenses for training and maintaining dogs. An example is police officers with the responsibility for maintaining and training police dogs.

  • I am a Uber driver now and I use my personal car for Uber which I bought it over 5 years ago. The lease has already been paid off before started driving for Uber. My question is, can I put any proportion of depreciation in the next financial year as a tax deduction based on the market value?

    MR asked 11 months ago

    You can deduct a proportion of the decline in value (depreciation) of the car from when you used the car for a taxable purpose. You will need to calculate the decline in value of the car from when you first used the car for any purpose.

    In calculating your deduction for the decline in value of the car for the years you used it for a taxable purpose, you need to work out the car’s cost, effective life, days held during the income year and taxable use percentage. The Guide to Depreciating Assets 2016will help you work out if you can deduct an amount for the decline in value of the car and the amount of the deduction.

    To help with your calculation, you need to think about:

    ·  The car’s cost. The decline in value of the car is not based on the current market value if you start to use the car for a taxable purpose after using it privately. The cost of a leased car generally depends on the terms of the lease used to purchase the car.

    ·  If you used the car for a taxable purpose. That is, if you provide ride‑sourcing services through the Uber App and earn income, then it is likely that you used the car to produce your assessable income, which is a taxable purpose.

    ·  If you also use the car for private purposes. You need to apportion the decline in value of the car between your private and taxable use, and use this calculation to work out the taxable use percentage. You need to show how you calculated the taxable use percentage. Find more information at ato.gov.au/sharing economy­.

    EXAMPLE: Working out the decline in value of the car,  ignoring any GST impact

    Roy acquires a car on 1 July 2010 for $20,000 and used it wholly for private purposes. On 1 August 2016, Roy begins to provide ride‑sourcing services through the Uber App and the car is used jointly for taxable and private purposes. Roy’s car started to decline in value from 1 July 2010 as that was the day he first used it. He needs to work out the car’s decline in value from that date. However, Roy can only claim a deduction for the decline in value for the period commencing 1 August 2016 when he used the car for a taxable purpose.  

    You could also choose to use the ‘cents per kilometre’ method (for up to 5,000 business kilometre travelled) to calculate your car expenses and this method already takes into account the decline in value (depreciation) of the car. So, if you choose this method, you can’t then claim a separate deduction for the decline in value.

    Note if you are making a loss from providing ride-sourcing services and want to offset the loss against other income you earn, then you need to check if the non‑commercial loss provisions apply. Find more information at ato.gov.au/Business/Non-commercial-losses.

  • Can I claim mortgage interest.

    mickrajal asked about 1 year ago

    Thank you for your question. You have not provided any information about your circumstances, so the guidance below is of a general nature.

    Firstly, as you have used the myDeductions quiz to ask the question, we will assume that you are an employee enquiring about a deduction for mortgage interest on your home (that is, you are not an owner of rental / investment property).

    Employees typically are not entitled to claim a deduction for mortgage interest for their home – the expense is not directly connected to employment income earned and it is generally a private expense. This includes when some work is done at home, for example, in a private study, at a dining table or spare desk.  In these circumstances, only the additional cost of expenses such as electricity for heating, cooling and lighting; cleaning costs; and depreciation and the cost of repairs on items of furniture and furnishings in the area used can be claimed as a deduction.   

    There is an exception – when the employment duties require the employee to perform some or all of their work using a home office that is identifiable as a place of business e.g. a dentist’s office or when it is used as the employee’s sole base of operations e.g. a salesperson who is not provided with a place to work from. Usually this will be a designated room or area in the home that will contain office furniture and equipment and is set aside for the work activities.

    We may check these claims and also ask your employer to confirm that you need a home office.

    It is important that the home office is clearly identifiable as a place of business and is an area used for the work activities that is used exclusively (or almost exclusively) for work purposes (including meeting any clients or customers) and is not used for private purposes outside work hours.

    If you use part of your home as a home office instead of as a private study, a deduction will be available for mortgage expenses on a proportionate basis. We accept apportioning the mortgage expense based on the floor area of the home used for the income earning activities.  Employees must also apportion on a time basis to take into account the amount of time during the year that the home office was used for work activities.

    Note that there are capital gains tax (CGT) consequences of deducting mortgage interest in respect of a home office. For most people their principal place of residence (home) can be sold CGT free. However, where there is a home office, CGT is likely to be payable on a portion of the gain following the sale of the property, as the property has not been used exclusively as a family home.

    Our Guide to capital gains tax 2016 can help you work out how CGT may apply in these circumstances. A copy of the guide is available on the ATO website, ato.gov.au – here.

    It is of course important that you keep good records of expenses and your use of the area when you are claiming for a home office. You can obtain ATO website information on substantiation requirements relating to interest deductions – here.

    For more information on how the law applies to home office expenses – see Taxation Ruling TR 93/30 Income Tax: Deductions for home office expenses, also available on the ATO website - here.

  • Hi, how can i lodge my tax return with my deductions without using mydeductions? I have tried to do this through the mygov website that takes me to the ATO "lodge claim" page but can only see the option to upload my deductible details through your app thanks, emily

    emilykw111 asked 11 months ago

    You do not have to use myDeductions app to include your deductions in myTax.

    To enter your deductions manually, on the ‘Personalise return’ page, select the checkbox ‘You had deductions you want to claim, or tax losses from earlier income years’ (and any other relevant items), and click ‘Next’. On the next page (Prepare return), you will see a section titled ‘Deductions, or tax losses from earlier income years’. Click ‘Add/Edit’ to view that section. This is where you can enter your work-related and any other deductions as appropriate.

    For a demonstration on how to add deductions in myTax, view our video.

  • Friends have 2 accounts which are in the name of the mother but are AFT for the 2 children. The money originated from a gift from the grandparents and the parents do not contribute or access the funds. Does the parent need to declare the interest?

    PeterN asked about 1 year ago

    Thanks for your question. We think you may find the following ATO web page helpful:

    https://www.ato.gov.au/Individuals/Investing/In-detail/Children-and-under-18s/Children-s-savings-accounts/

    In short, who declares the interest depends on who owns or uses the funds of that account (no matter what type of account it is or the name of the account holder).

    In the situation you have outlined, we have a gift of money to a child where the parents are being trusted to look after the gift, and do not contribute to or access the account. In this case the interest earned belongs to the child.

    Note that the child does not need to lodge a tax return if their only source of income is interest totalling less than $416.

    Of course, if the money is not held on trust, or the parent treats the money and income as their own to spend, even if it is spent on the kids, then the interest should be included in the parent’s income tax return.

  • Under protective clothing you can claim, safety coloured vests are listed. Does this also extend to high-vis rain jackets and jumpers?

    AndrewR asked about 1 year ago

    Thanks for your question.

    If your work environment is hazardous, you can claim a deduction for the cost of protective clothing and footwear you need to protect you from the risk of illness or injury. As you note, our web page lists safety coloured vests as protective clothing.

    We have had a look at hi-vis rain jackets and jumpers online, and, if used because your work requires you to wear the item to protect your ordinary clothes or prevent injury, the expense can be claimed as a deduction.

    Remember to keep a record.

    You of course cannot claim for protective clothes provided to you by your employer.

  • Hello, I work FIFO, can I claim TAXI / uber ride from home to airport (and airport-home) as a work related travel expense? Thanks, Marian

    Marian Plucinski asked about 1 year ago

    Thank you for posting your question about travel expenses for fly-in fly-out (FIFO) workers between their homes and the airport.

    You cannot claim a deduction for travel expenses, including taxi/uber rides, between your home and a departure point under a FIFO arrangement.

    These are costs of travelling to work, not ‘travelling on work’. As the costs are of a private nature, no deduction is available for the travel.

  • I have a qualified ASSISTANCE DOG covered by "Guide Hearing & Assistance Dog Act". May I claim his yearly testing fee? His Private Health Insurance? Vaccination, Council Registration etc Not a Pet or Companion. Assists me with balance, does pain therapy, alerts for my other medical conditions.

    GypsyVirginia asked about 1 year ago

    Thank you for posting your question about claiming for expenses associated with your qualified assistance dog.

    Without information about the income you earn and your general tax position, we can only provide general information.

    For income tax purposes, expenses of this kind are considered under the tax deduction rules or the Net Medical Expenses Tax Offset rules.

    Deductions

    The following link provides information about deductions: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/

    A person will not generally be able to claim an income tax deduction for expenses associated with a guide or assistance dog. Medical expenses and other expenses to assist someone with a disability are nearly always a private expense and not deductible.  

    Net Medical Expenses Tax Offset

    You may be entitled to a medical expenses tax offset, depending on your overall tax position.

    From 1 July 15 the eligibility conditions for the Net Medical Expenses Tax Offset changed, such that you can now only claim for expenses relating to disability aids, attendant care for a person who has a disability and aged care.

    We consider that the purchase and maintenance of a qualified guide or assistance dog, for guiding or assisting people with a disability, (but not for social therapy) is an example of a disability aid.

    Your description of how the assistance dog is used suggests that all of the described expenses would be in the category of a disability aid and constitute medical expenses.

    Net medical expenses is the amount you have paid less any refunds you receive from Medicare or a private health insurer for eligible medical expenses over the tax year. For the 2015-16 income tax return, if you have over $2,265 in eligible out-of-pocket expenses, the ATO allows a 20% tax offset (that is, you get back 20 cents in the dollar) on anything over this threshold. There is no upper limit on the amount you can claim. This offset is income-tested and if your adjusted taxable income is above $90,000 for singles and $180,000 for a couple or family, the tax offset reduces to 10% and the expenses threshold increases to $5,343.

    The family income threshold is increased by $1500 for each dependent child after the first.

    See details for eligibility in claiming the offset entitlement at net-medical-expenses-for-disability-aids,-attendant-care-or-aged-care-2016