Claiming tax back for Aus CPL(H) training
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Claiming tax back for Aus CPL(H) training
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
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
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!!!
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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.
I'll get me coat......
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Many people have tried the CPL training tax laws & to my limited knowledge all have failed.
CH
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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...
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.
I changed tax agents after that!
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...
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.
I changed tax agents after that!
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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
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
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GST exemption NOT automatic
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.
