Tax time looming.....

[Ivor Biggin]

Not too long now before we have to start picking the moths out of those receipt box's!

Can anyone recomend a tax accountant in Brisabne who is experienced with aviation related tax returns?

[The Hedge]

Yes..was just looking through my years earnings. At a rough glance I am looking at a tax bill for the first time....Ahhhh!

I have a few questions I hope someone can answer.....

Instead of reimbursing for expenses, my company pays us a standard overnight allowance IAW the award. Is this counted as Income.

I am thinking of sacrificing my entire June salary intto my super in order to avoid a bill from Mr. Ato.

Any other suggestions to minimise exposure at the last minute would be very helpful


Cheers

[yowie]

:= Tryin to get that deposit together shaggs?

[Mr. Boeing]

The Hedge, there is a taxation ruling (not sure of the number) where the ATO has a nominated amount for allowances for a particuarlar place and if you don't receive that amount, you can claim the difference. Also, if you are married, you can put in up to $3,000 into your wifes super account and you can get up to $540 back in your tax return for doing so.
Talking of reducing tax, does anyone know what ended up happening with the court case regarding Sentinel?

[DirectAnywhere]

Yes, The Hedge, Mr. Boeing is correct.

The ATO ruling for 2003/4 is at:
ATO Reasonable Allowances (http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR20037/NAT/ATO/00001)

Firstly, your allowances have to be declared as income.

Secondly, any amount you are paid in allowances up to the ATO Reasonable Daily Travel Allowance (RDTA) amounts is considered to be fully expended ie. you can declare an expense equal to the RDTA - so you don't have to pay tax on it. This will also allow you to claim a tax deduction if your allowance is less than the RDTA.

Any allowance paid above the RDTA amount is not considered by the ATO to be reasonable and as such, is subject to taxation at the appropriate marginal rate.

Incidentally, I believe that if you can prove by receipt that you were required to spend more than your RDTA on food an drink, you can claim any additional expenses you have incurred.

[Dehavillanddriver]

I use Michael Coughlin, and have done for about 12 years

He is good, though he isn't particularly cheap.

[The Hedge]

Thanks Mr. Boeing...

But my other half works and earns more than the minimum (10.800)for the Spouse Super deduction to be applicable.

Direct A...

I need to get my head around the allowances bit. I have read the ruling. Thanks for the link.

For Example: My company pays us $85.36 per overnight which is the same as the RTDA. Accom is paid by the company.

For all intents and purposes, I have spent the entire allowance.

Therefore I declare my allowances as income, then deduct the same amount as a deduction.

Correct?

[mootyman]

from listening to a few boys in different airlines and hearing that they are getting 90 a night tax free i think you should be fine, the dilema came up in my company and we were told also that it was definatly tax free but it may not hurt to speak maybe to your payroll officer

[DirectAnywhere]

The Hedge.

That's it. Just declare your allowance as income and claim the RDTA as a deduction. The net effect of this of course is zero if your allowance = RDTA. Therefore, your allowance is tax free!!

Note: Any information given is general in nature and is not specific tax advice. It is strongly recommended that any individual reading this asks someone else who's an accountant and blame them if it's wrong...but I'm sure it's not!!;)

[The Hedge]

Thanks for that.

[Keg]

Incidentally, I believe that if you can prove by receipt that you were required to spend more than your RDTA on food an drink, you can claim any additional expenses you have incurred.

From memory, if you're going to do this then you have to do it for the full year. You can't just have one big night and claim a greater allowance just for that nigh, you have to show the claim for the whole year. Not many could do that.

Also, I remember reading something in the blurb that AIPA put out to us that if the ATO allowance for the 12 months was greater than allowances paid to us we could ONLY claim the entire ATO allowance back (IE, get some money BACK off the ATO) if the trip was longer than six days?!?!?! IE, you could transfer the reasonable allowances between trips but you couldn't claim back more for the government than what you got paid in allowances. It's worth following that one (and the previous one for that matter!) up with the accountant! :} :p