Taxation Part 5 Flashcards
What can allowable deductions include?
Cost of tools or equipment for a job, union fees, cost of uniforms, travel costs for the job and self-education expenses related to the job
What are some allowable deductions which are not related to income earning activities?
Costs of preparing a tax return, gifts or donations of $2 or more to an approved charity
When can you claim work related car expenses as an allowable deduction?
When you used your car to carry bulky tools or equipment for work, your home was a base of employment or you had shifting places of employment
When can you not claim work related car expenses as an allowable deduction?
Ordinary travel from home to work even if it is more than once a day or travelling outside normal hours
Can interest paid on money borrowed for the purchase of a home or shares be claimed as an allowable deduction?
Yes, for the purchase of shares
No, for the purchase of a house
What is the criteria regarding uniforms as allowable deductions?
Uniforms or protective clothing with logos or distinctive brand-related patterns are allowable deductions, as are expenses involved with cleaning them
What is the criteria regarding self-education expenses as allowable deductions?
They must relate to your current job and not enable you to change employment
What is the criteria regarding union fees or subscriptions as allowable deductions?
They must relate to your professional organisation
What is the criteria regarding donations as allowable deductions?
They must be to government approved charities or school funds
What are some examples of allowable deductions for a bus driver?
Heavy vehicle permits, cleaning products for the bus, union fees, cost of using personal car between separate jobs
What are some examples of allowable deductions for a firefighter?
Protective clothing and footwear, tools and equipment, cost of cleaning clothing, overtime meal expenses
What are some examples of allowable deductions for a lawyer?
Using your own car when driving from an office to court, self-education and study expenses, stationery, clothing used in court
What is a salary?
A regular fixed payment that a person earns for performing work duty during a specific period of time, such as a teacher or pilot
What are wages?
A regular payment, usually on an hourly, daily or weekly basis, made by an employer to an employee, especially for manual or unskilled work, such as a sales assistant
What are fees?
A fixed sum charged, as by an institution for a privilege, such as doctor’s or school fees
What are tips?
A small amount of money given to somebody who has provided a service of high quality or gone beyond their duty, such as an exceptional waiter
What is a commission?
A fee or percentage of the proceeds of a sale paid to a salesperson, either in addition to or instead of wages or salary
What is rent?
A stated return of payment for the temporary possession or use of a house, land or property, made at fixed intervals by the tenant to the owner
What is interest?
A fee that is charged from a lender to a borrower for the right to use the borrowed funds, typically expressed as an annual percentage rate
What are royalties?
A share of proceeds, usually a specified percentage, paid to an owner, author or composer
What are dividends?
A distribution of profits by a corporation to its stakeholders
