Don't forget to claim your Tax benefits !

[geoffl]

Up until a couple of years ago I spent more than 50% of my time travelling, and our Company supplied J Class Tickets for Flights over 4 hours. The best thing I learnt during that time was the upgrade from J to F is usually minimal, particularly throughout Asia, and if your trip is Business related, the payment differential is 100% Tax deductable, and comes directly off your personal tax at tax time. So, if only part of your income is at the highest tax level, the Government in effect picks up 48.5% of the cost, when you pay the upcharge and claim it as a business related expense at years end.
Obviously this also works on any upgrade you personally buy, whether it is from Y to J, or J to F.

 

[tintin]

That is awesome i will certainly be doing that from now on. Why didn't my accountant tell me about that.

 

[geoffl]

To TinTin, Don't forget to make this payment quite separately from the payment your Company makes, then, keep the separate Tax Invoice for the difference, in your name, not your Companies, and, keep a copy of your travel diary, showing a summary of the Business calls you have made.

 

[edman]

That is awesome i will certainly be doing that from now on. Why didn't my accountant tell me about that.

talk to your accountant sooner rather than later if this applies to you, as they can go back an amend your tax returns for previous years. you will just need to work out the size of your claim, and whether or not its worth the fee to amend

 

[JohnK]

I am trying to determine if I get any tax benefits by working in Brisbane but living in Sydney. It would be nice if I was able to recoup some percentage of travelling and accommodation costs even if it is only a small amount. I have briefly spoken to my accountant and he seems to think that this is possible. Time will tell.

 

[geoffl]

What part of your accommodation and travel does your Employee pay, if it is 100%, then it would be difficult to justify any additional, unless you commute, upgrade, and pay the difference..be careful.

 

[wandering_fred]

My accountant indicated that the working away from home allowances do have time limits - at least when working in a specific location.

At the time it was one year. But laws/interpretations may have changed. And of course this is one case where wandering around is a tax benefit...... :mrgreen:

Fred

 

[JohnK]

What part of your accommodation and travel does your Employee pay

My employer does not pay me any allowances. Not great loss if I can't claim anything from ATO but if I can get something then it is a bonus.

Worst case scenario if I cannot claim living away from home expenses then I will be able to claim some travel related costs getting back to Sydney to inspect investment property. Not sure how often you can claim these costs but I think it is at least once every 3 months.

 

[vt01]

My accountant indicated that the working away from home allowances do have time limits - at least when working in a specific location.

At the time it was one year. But laws/interpretations may have changed. And of course this is one case where wandering around is a tax benefit...... :mrgreen:

Fred

Last time I heard of this, which was a couple of years ago, the limit was something like 90 days in a single location. Although currently I cannot find the reference at the ATO tax site. So as always, discuss with your accountant.

 

[straitman]

Worst case scenario if I cannot claim living away from home expenses then I will be able to claim some travel related costs getting back to Sydney to inspect investment property. Not sure how often you can claim these costs but I think it is at least once every 3 months.

JohnK,

I think you'll find it is only once per year unfortunately.

 

[JohnK]

I think you'll find it is only once per year unfortunately.

Even once a year will give me something back as there is more than one property to inspect. As I said earlier any amount, however trivial, I can claim is a win for me. Better in my pocket than the ATO.

 

[edman]

Even once a year will give me something back as there is more than one property to inspect. As I said earlier any amount, however trivial, I can claim is a win for me. Better in my pocket than the ATO.

JohnK,

You can claim however many trips you make where the main purpose is to look at the property, even if you do private things while you are there. Its a matter of fact whether you can argue the trip is income-producing related or not. There is nothing to say you can't do 10 trips a year if there are reasons for that and it's warranted. Although I am an accountant, I am not yours, so always talk to your accountant for specifc advice.

 

[JohnK]

Thanks edman.

I will check with my accountant....

 

[mcm72]

Hi JohnK,

The other thing you could do ,, is get a Part time / casual job in Sydney,
aslong as you are working at once place of employment ,, and travel to another place of employment,, that travel is a tax deduction,

so even if u only traveled from BNE to SYD then went to work at a hamburger shop for 2 hrs,, that should count,, not sure if u could "work for yourself" ????

Now, i am no accountant,,so i take no responsibility ,, but i remember doing this years ago when i had 3 jobs,, always made sure to travel from one to the next,, not home first

 

[JohnK]

Thanks. That is actually a decent idea and I had thought about it before starting work in Brisbane. The only problem I see is that it needs to be a legitimate job and I have so little time in Sydney now I would not want to lose that time on a casual job. Money is important but my time in Sydney, away from work and Brisbane, is also important.

 

[edman]

Thanks. That is actually a decent idea and I had thought about it before starting work in Brisbane. The only problem I see is that it needs to be a legitimate job and I have so little time in Sydney now I would not want to lose that time on a casual job. Money is important but my time in Sydney, away from work and Brisbane, is also important.

Careful on that one JohnK, it needs to not be seen as purely tax advantageous. There are a few court rulings on travel between unrelated work places, check out the Payne case (which is the one most often referred to).

 

[medhead]

JohnK,

You can claim however many trips you make where the main purpose is to look at the property, even if you do private things while you are there.

The only thing is that John indicated in an earlier post that his place of residence is Sydney. In which case, won't that put a question mark over the purpose of the travel. Is he travelling to BNE to SYD to go home or to inspect the investment?

Maybe, I've missed something.

 

[JohnK]

The only thing is that John indicated in an earlier post that his place of residence is Sydney. In which case, won't that put a question mark over the purpose of the travel. Is he travelling to BNE to SYD to go home or to inspect the investment?

Maybe, I've missed something.

The idea at the moment is that my home is Sydney and to try and claim some sort of living away from home allowance from the ATO. In these circumstances I would not be claiming travel expenses, other than what I claiming at present, to inspect properties. Anyway this may not be possible as my employer is not paying me a LAFHA.

So if according to the ATO I am not living away from home for taxation purposes then I will make my home Brisbane and I can then claim travel related expenses to inspect properties.

The ATO can have one but they can't have both. And before doing anything I will get proper advice from my accountant....

 

[geoffl]

I started this, but, I don't think you have missed anything, tyravel to your place of employment, is not deductable, only business travel associated with your income earning profession.

 

[medhead]

then I will make my home Brisbane and I can then claim travel related expenses to inspect properties.

Ahh, I understand now.