A tax deduction does not mean the government refunds the entire purchase price. Instead, a deduction lowers your taxable income, meaning you only save the amount of tax you would have paid on that money.
Claiming deductions and offsets can be very confusing for new arrivals and is where most Laterals in their 1st year get it wrong. You will hear the phrase “Just claim it on tax” from the troops and older Laterals about purchases, which will give you the impression that if you spend $280 on a ‘SWAG’ (work expense) then after your tax claim is complete you will see the whole $280 come back. WRONG!
As per the cut and pasted internet search statement above, you will only get the tax portion back relative to your tax rate by reducing your overall income. I went nuts in my first year, boots, SWAG, boots, new GPS, boots, plug in fridge, boots, new warm/wet weather gear, boots, field stores and some boots, new everything. I was thinking I might as well buy it in with put aside holiday money as I would get it all back! Right?
My tax return slapped me for not researching correctly. To the tune of thousands. The trip to Fiji I promised the missus once the holiday pot was replenished by tax refund money never happened!
My tip, create a document on arrival where you can track your purchases as you make them, purchases under $300 don’t require the need to keep receipts. Over $300 ask for one or keep your work order emails. If you’re paying through Gpay or banking app there will often be on the statement for example:
There is no perfect way to keep details, I’m tech poor and do what works for me. If my tax agent doesn’t understand something she will call to discuss it before she adds it to the claim. Or she will advise I don’t claim that item. I also use my tracker to remind me of things to claim that aren’t widely known or I find during my research into annual changes.
Below is a redacted portion of mine from previous years.
Online tax claim research will get you so far but clever wording and using an ADF specialist tax agent will get you further. If you or your dependants buy something for ‘your work’ with your individual bank account, joint bank account or you have the receipt, claim it.
Item’s my kids needed at school, or the family need to protect themselves from the sun, but I also use at work and claim are:
Claims that may need justified before Tax Agent will add them:
Putting the word, field, bush, duty, course or work in the description clarifies its work use.
Don’t be stupid or greedy. Don’t claim $3000 for a ‘bush’ 75 inch LCD Plasma Smart TV in HD and $75 ‘field’ eye lash curlers and $30 camo nail varnish.