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anvilman
11th Oct 2006, 22:07
Many people do their CPL training whilst working full time in another field.

In Aus, if you are training towards CPL, the flying training is GST free, saving you about 10%.

Presumably, that is the only tax break you get. But I was wondering whether other apsects of training, such as training manuals, CPL exam fees, etc, were tax deductable against your main income, at tax return time? This would be on the grounds you are training for another career etc.

Anyone come across this?

Cheers

heliduck
12th Oct 2006, 05:55
In Australia the only expenses which are tax deductable are those which are incurred while in the course of earning an income. Once you are employed as a pilot (consequently all the CPL training is complete at this time) & are earning a taxable income any further training expenses required to mantain currency or as required by expanded fields of operation (e.g. sling approvals etc) would be tax deductable. Many people have tried the CPL training tax laws & to my limited knowledge all have failed. I am not a tax professional but I'm sure an accountant could set you straight. My advice is to not spend anything you don't have to until employed as a pilot - then the headsets, clothes etc will be tax deductable. That is assuming that your first job pays over the minimum tax threshhold of $6000/year!!!

anvilman
12th Oct 2006, 07:07
Thanks for that heliduck, appreciate your response.

topendtorque
12th Oct 2006, 11:19
.

In Aus, if you are training towards CPL, the flying training is GST free, saving you about 10%.



just run that one past again.

Flying schools, which are commercial operations and registered companies under OZ tax laws are not required to register for and pay or collect GST??????????????

They would certainly be over the $50,000.00 threshold, costs that much to fuel and oil one machine per year, if it's working the way it needs to be.

Capt Hollywood
12th Oct 2006, 13:54
Many people have tried the CPL training tax laws & to my limited knowledge all have failed.

Actually I was succesful back in 1998. I was working in the tourism industry, then did my CPL and ended up working back in the tourism industry doing scenic flights. I claimed my flying training as a tax deduction based on the fact that it was training within the same industry, in the same way you can claim endorsements, ratings, etc. :ok:

CH :cool:

imabell
12th Oct 2006, 22:21
commercial helicopter flight training, (not private), is gst free in australia.

CYHeli
12th Oct 2006, 23:12
Capt H is right, for that time at least.
I was in the police force and did my training in 1999. I was trying to get into the Police airwing. Good nexus you would think. The ATO had the rules changed and tightened up. They paid my claim, but then three years later asked for the $8,000 back that they had already paid me, stating that the nexus wasn't great enough. I hadn't proved that a police pilot earns more than I did as an operational Senior Connie. Therefore, no increase in taxable income, no claim.

Even earlier than Capt H's example, I heard from a fixed wing pilot in the police force who claimed his fix wing licence as training to get into the airwing, and they didn't even have any fixed wing at that stage. And the ATO paid him...:eek:
Don't bother trying, I didn't have to pay fines as well, but they did warn me that they could've fined me.
It hurts having to find an extra 8 grand for the government. :ouch:
I changed tax agents after that!

blade root
12th Oct 2006, 23:15
Anvilman,

Back in the early '90's I had to have a private ruling from the ATO to claim my training as a deduction.

From memory ( a few fried brain cells ) it was only claimed after I gained employment flying.

Good luck

ASKARI
13th Oct 2006, 03:26
IMABELL, you assumption is incorrect. The CPL training is only GST free is the school in question is an Registered Training Organisation (RTO) or has obtained a private determination from the Australian Taxation Office.
:ok:

imabell
13th Oct 2006, 03:34
askari, you do not have to be an rto for students to be exempt from gst.

i am not assuming anything, that's a fact.