In the actual Tax Return form, you have to fill in boxes using a black pen and write in block or capital letters including the email address.

Read carefully and proofread twice or multiple times to make sure that everything is correct. For every mistake has a huge impact on the taxpayer, especially on the amount and the bank account details.

Income and Deductions

When we write the income and deductions amount in the form, we drop the cents for the income amount. For deductions, we round it up or down (if cents amount is 50 cents or more, round up, if less than 50 cents round down). The withholding tax amount of the bank interest must be written in whole dollar amount including the cents.

For item D3 which is the work-related clothing, laundry, and dry cleaning expenses, aside from laundry expenses, other claimable items are expenses incurred for Laundromat and the repairs. Laundromat has no receipt so must maintain a diary for it. The diary must contain the date of payment or purchase, the item paid, the date the document was prepared, the name of the supplier, and the value of the items. The diary is to be done for all undocumented expenses and laundromat is one of the examples.      

Still under D3 of the tax return form, repairs are also claimable. Example repair of your compulsory uniforms.

You cannot just anyhow claim laundry expenses but you need to have a valid calculation of it.

Another thing to note is that if total work-related deductions exceed $300, claiming laundry expenses is limited only to $150. The $300 limit does not include claims for car, overtime meals,

Award transport payments, and travel allowance.

Cash shortages (top-up) are one of the other work-related deductions. If as an employee you repay your employer’s cash shortages or client bad debts and are able to provide records of it, it will be claimable.

Internet, which is difficult to monitor must have a diary to record for at least 4 weeks for personal and business use.

Tax offset, Medicare Levy and PHI

Just a slight note on this topic of Tax offset, Medicare Levy and PHI.

The tax offset is a reduction in your tax not on your taxable income.

It reduces the amount you pay directly. The refundable tax offset is allowed to reduce the amount of Medicare levy payable while the non-refundable tax offset is otherwise.

In the Medicare levy exemption: there is a full 2% exemption and half of the 2% exemption.

The Private Health Insurance coverage will depend on when the taxpayer took out the insurance. For example, if you take PHI on 01 June 2022 to cover your whole family, you as a taxpayer, and your family is only covered for 30 days, from 01 to 30 June 2022.

Want more about this? Talk to us now.

Yan (Jenny) Qi CA

Founder of Progress CA Pty Ltd

Tel. no. 0403 050 779

Email: info@progressca.com.au

Website: www.progressca.com.au