ATPL Subjects, Tax Time!!!!
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ATPL Subjects, Tax Time!!!!
I have worked as a Grade One Flying Instructor for the same Company for the past Eight years giving Instruction for most Licences and Ratings.
During the past 12 months I have completed courses for five ATPL subjects.
I would appreciate any advice as to if I can claim for these courses on my tax return?
Whilst these courses have increased my professional knowledge my Company does not have aircraft that I would require an ATPL to fly.
During the past 12 months I have completed courses for five ATPL subjects.
I would appreciate any advice as to if I can claim for these courses on my tax return?
Whilst these courses have increased my professional knowledge my Company does not have aircraft that I would require an ATPL to fly.
Last edited by Aileron Roll; 11th Jul 2014 at 09:08. Reason: more to add
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Yes, they are a legitimate self-education expense that is related to your current and future employment.
You could claim course fees, books, exam fees etc.
https://www.ato.gov.au/Individuals/T...tion-expenses/
You could claim course fees, books, exam fees etc.
https://www.ato.gov.au/Individuals/T...tion-expenses/
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I asked a friend (Senior CPA) a very similar question.
His answer:
If it is an education expense directly related to your current occupation (regardless of employer) in order to advance/further your career, it's a legitimate claim.
You cannot claim initial costs in order to gain employment. Eg. CPL training / initial CIR
Rule of thumb. It's ok if you're going to pay more tax as a result of further educating yourself in your chosen occupation, providing you're actually paying tax.
I'd still be double checking with the accountant filing your return though.
His answer:
If it is an education expense directly related to your current occupation (regardless of employer) in order to advance/further your career, it's a legitimate claim.
You cannot claim initial costs in order to gain employment. Eg. CPL training / initial CIR
Rule of thumb. It's ok if you're going to pay more tax as a result of further educating yourself in your chosen occupation, providing you're actually paying tax.
I'd still be double checking with the accountant filing your return though.
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Yes, they are a legitimate self-education expense that is related to your current and future employment.
You could claim course fees, books, exam fees etc.
You could claim course fees, books, exam fees etc.
Do not rely on what you read on Prune for Taxation advice.
DIVOSH!
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Yep, claim it, everyone I know has and I did also.
Another one a lot of people forget is to claim a percentage of your mobile plan or home phone/internet as you are required to be contactable and also to check your roster and CASA website.
Another one a lot of people forget is to claim a percentage of your mobile plan or home phone/internet as you are required to be contactable and also to check your roster and CASA website.
Claim it. If in the very unlikely circumstance that the Tax Office reject it, you can certainly make a good case for a legitimate excuse so you won't have to pay any penalty. If you use an accountant and he won't put in the claim, find another accountant.
I'm with Di Vosh on this on both fronts a) don't use PPRUNE for tax advice and b) its not a legit claim.
If you needed ATPL to fly an aircraft your current employer operates and that was going to involve an increase in pay (and tax) then maybe, but claiming something that may or may not happen in the future is not what the ATO consider to be legitimate.
At the end of the day there is a good chance you'll get away with it under the "self assessment" regime, on the other hand if you het an audit it you will be required by the ATO to pay double what you received and/or a penalty, could be expensive.
Also remember they can audit you for something you claimed this year, in 5 years time.
If you needed ATPL to fly an aircraft your current employer operates and that was going to involve an increase in pay (and tax) then maybe, but claiming something that may or may not happen in the future is not what the ATO consider to be legitimate.
At the end of the day there is a good chance you'll get away with it under the "self assessment" regime, on the other hand if you het an audit it you will be required by the ATO to pay double what you received and/or a penalty, could be expensive.
Also remember they can audit you for something you claimed this year, in 5 years time.
Hold on, the guy did not get an atpl, that's is obtained by filling in form 495 and paying $100. Besides under the award an instructor is defined as having a cpl or higher with the rating.
He studied advanced aviation theory, and would use that theory in his current role teaching students, e.g. Atpl met/human factors theory is transferable knowledge to even a ppl student.
Get tax advice on the following, if the advanced theory you studied which can be used in your current role as an instructor is a ligit claim. Also the additional question if the $100 fee to obtain the atpl is deductible.
My guess is first question will be yes, second question will be no. Get proper advice.
He studied advanced aviation theory, and would use that theory in his current role teaching students, e.g. Atpl met/human factors theory is transferable knowledge to even a ppl student.
Get tax advice on the following, if the advanced theory you studied which can be used in your current role as an instructor is a ligit claim. Also the additional question if the $100 fee to obtain the atpl is deductible.
My guess is first question will be yes, second question will be no. Get proper advice.
A tax deduction for your self-education expenses related to your work as an employee is available if you work and study at the same time and can satisfy any of these conditions:
You are upgrading your qualifications for your current employment – for example, upgrading from a Bachelor qualification to a Masters qualification.
You are improving specific skills or knowledge used in your current employment – for example, a course that will allow you to operate more machinery at work.
You are employed as a trainee and you are undertaking a course that forms part of that traineeship – for example, an overseas trained person employed as an intern while doing a bridging course.
You can show that at the time you were working and studying, your course led, or was likely to lead, to an increase in employment income – for example, a teacher who will automatically get a pay increase as a result of completing the course..
You are upgrading your qualifications for your current employment – for example, upgrading from a Bachelor qualification to a Masters qualification.
You are improving specific skills or knowledge used in your current employment – for example, a course that will allow you to operate more machinery at work.
You are employed as a trainee and you are undertaking a course that forms part of that traineeship – for example, an overseas trained person employed as an intern while doing a bridging course.
You can show that at the time you were working and studying, your course led, or was likely to lead, to an increase in employment income – for example, a teacher who will automatically get a pay increase as a result of completing the course..
Even if you look at it on an exam by exam basis, ATPL Meteorology, for example, increases your job-specific knowledge.
You only pay a penalty to the Tax Man if you try and defraud him. You are justified in your claim, whether or not the ATO agrees. Worst case scenario is that they audit you and reject your claim. Their initial reaction is to charge you the unpaid tax and a penalty. You have the right to appeal and when you put your case forward, the case SWH has made, you will win the appeal. You will then be charged the unpaid tax plus interest at the supposed current rate, probably up to 8% which you could then appeal again. I wouldn't recommend the second appeal.
Your claim is justified, you have spent far more on your qualifications than the average person ever will and the subjects, in all probability, will lead to the ATO getting a much larger slice from you in the future.
I have been charged by the ATO with not paying the correct levy on Medicare and a second time of not declaring dividends. I was penalised, appealed on the basis of them both being honest mistakes and merely had to pay the unpaid tax plus interest.
Make the claim.
Your claim is justified, you have spent far more on your qualifications than the average person ever will and the subjects, in all probability, will lead to the ATO getting a much larger slice from you in the future.
I have been charged by the ATO with not paying the correct levy on Medicare and a second time of not declaring dividends. I was penalised, appealed on the basis of them both being honest mistakes and merely had to pay the unpaid tax plus interest.
Make the claim.
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There is no need for a poll.
What I said in the first reply is correct.
Expenses incurred by a Commercial pilot doing their ATPL theory exams is legitimately deductible. It is directly related to his present employment and would also enable him to earn more money in the future.
From memory, it is covered in Section 26 and 82 of the Income Tax Assessment Act, although I haven't looked at it for a while.
INCOME TAX ASSESSMENT ACT 1936 - SECT 82A Deductions for expenses of self-education
If this guy didn't already have an Instrument Rating, the training for this would also be deductible.
It would be the same for, say, a Doctor doing additional post-grad training. That's why Doctors and Dentists have annual conferences and training sessions at holiday resorts - it's tax deductible.
Commercial pilots here could also claim deduction such as the cost (including travel expenses) of things like attending CASA safety seminars.
What I said in the first reply is correct.
Expenses incurred by a Commercial pilot doing their ATPL theory exams is legitimately deductible. It is directly related to his present employment and would also enable him to earn more money in the future.
From memory, it is covered in Section 26 and 82 of the Income Tax Assessment Act, although I haven't looked at it for a while.
INCOME TAX ASSESSMENT ACT 1936 - SECT 82A Deductions for expenses of self-education
If this guy didn't already have an Instrument Rating, the training for this would also be deductible.
It would be the same for, say, a Doctor doing additional post-grad training. That's why Doctors and Dentists have annual conferences and training sessions at holiday resorts - it's tax deductible.
Commercial pilots here could also claim deduction such as the cost (including travel expenses) of things like attending CASA safety seminars.
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Tax time atpl subjects
Answer is simple, expenses are deductible if related to present income producing activities. Get his employer to say that he needs atpl qualifications to expand his current responsibilities to include teaching atpl theory!
