Handy tips for tax time

Travel expenses can be claimed if you have incurred work-related ‘travel expenses’.

Work-related expenses eg airfares, accommodation and food incurring in the course of your employment. If the cost has been incurred by the individual - all necessary evidence must be maintained to support the claim e.g.  Receipts and travel diary.

Travel allowance can be claimed if a:-

Bona-fide travel allowance

Been included in the employee’s PAYG payment summary.

If entitled to use the ‘substantiation exception’ and therefore, claim deductions for work-related travel expenses using the Commissioner’s reasonable amounts.

If a LAFHA, the allowance is not assessable to the individual, and deductions cannot be claimed with respect to the cost of accommodation.

Depreciating assets that are used for work can be claimed if they have acquired assets with a cost of $300 or less.

Medicare Levy: The Medicare levy rate has increased from 1.5 to 2 per cent of taxable income for the 2014-15 income year . 

As announced in the 2015-16 Federal Budget, the Medicare levy low-income threshold for 2015-16 will be increased as follows;

For singles. The threshold will increase to $20,896

For couples with no children the threshold will be increased to $35,261 and the additional amount of threshold for each dependent child or student will be increased to $3238.

For single seniors and pensioners the threshold will be increased to $33,044.

The Medicare Levy Surcharge applies where the income threshold of an individual for the income year is exceeded (i.e. single or family amounts still apply) and the individual does not have sufficient private health insurance cover.  The surcharge rate ranges from 1 per cent to 1.5 per cent depending on the taxpayer’s modified income amount.

Dependant (Invalid and Carer) Tax Offset - This offset is available for senior Australians who are eligible for an Australian Government age pension (or similar) and whose rebate income is within the relevant rebate income thresholds.

Private Health Insurance Rebate - There are income tests which impact the ability for an individual to claim the full rebate. A full rebate is available if an individual’s income is below the Medicare levy surcharge threshold. The rebate no longer applies where the person’s income exceeds the upper threshold.

Hecs-Help Debt - If a voluntary repayment of HELP for the income year is made a discount equal to 5 per cent of the voluntary repayment amount, may be available for payments in excess of $500. It would be best to make the repayment either before lodgement of the income tax return or before the application of indexation (June 1).