Tax deductions

Good day,

Need to seek some advice regarding tax deductions:

AA) I am a merchant navy officer and my company is based in mumbai India.

I need to go to their office to complete the formalitites before I join the ship ..

Now everytime I go to India And return back I incur an expense of around 1000 AUD.

Can I claim the same OR will I get that money back back from he tax that i will pay. It is an expense incurred to go to my office in India which doesn't have a branch in Australia to join the ship. (MY JOB)

========

BB)Incase I do a course of in the Marine engine driver 3 from a private institute in Australia and will incur fees for giving my exams. Can i claim this back from the ATO.

Thanks for your help

Hello

I will move your post to the money and finance section as this is not a question regards financial advice.

These links may help a bit: https://www.hrblock.com.au/faq/tax-deductions and https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Self-education-expenses/

However my suggestion to you would be to discuss these questions directly with your Australian Tax Adviser/Accountant.

Regards

Andy

Good day,

Need to seek some advice regarding tax deductions:

 

 

AA) I am a merchant navy officer and my company is based in mumbai India.

 

 

I need to go to their office to complete the formalitites before I join the ship ..

 

 

Now everytime I go to India And return back I incur an expense of around 1000 AUD.

Can I claim the same OR will I get that money back back from he tax that i will pay. It is an expense incurred to go to my office in India which doesn't have a branch in Australia to join the ship. (MY JOB)

 

 

========

BB)Incase I do a course of in the Marine engine driver 3 from a private institute in Australia and will incur fees for giving my exams. Can i claim this back from the ATO.

 

 

Thanks for your help

AA) The general rule is that travel to work is not an allowable expense (otherwise every commuter would be claiming their travel expense). Because your circumstances are somewhat unusual I suspect the ATO could be convinced that this is a necessary expense. Note however that even if you were successful a $1,000 allowable expense will only reduce your taxable income by $1,000 - it won't reduce your tax bill by anything like that amount

BB) Depends on whether the course is relevant to your current job. If it is then you could claim the expense (again only reduces your taxable income you don't get the whole amount back) however if this is to enable you to apply for a new job then the expense is incurred too soon and you can't claim any portion of it.

Thanks Ken for the update. ..

What I did not understand is the phrase expense is incurred too soon. .

This course will enable me to get a new job but the requirements of this new job is that along with my existing certification I require to do this course and obtain the relevant certification. ..

The studies are in the same field only another department. ...

It's like saying u have an hr qualification but but now you are pursuing your accountancy studies so that you can get a job as Admin cum accountant

Sent from my GT-N7100 using Tapatalk

Thanks Ken for the update. ..

What I did not understand is the phrase expense is incurred too soon. .

This course will enable me to get a new job but the requirements of this new job is that along with my existing certification I require to do this course and obtain the relevant certification. ..

The studies are in the same field only another department. ...

It's like saying u have an hr qualification but but now you are pursuing your accountancy studies so that you can get a job as Admin cum accountant

 

Sent from my GT-N7100 using Tapatalk

Yes, but those are the rules. The costs of getting your original qualification to be able to do a job are not tax deductible. To be tax deductible educational expenses have to be directly related to your current job. In your example if the HR person could demonstrate that they were already doing accounting work in their current role then they could get a tax deduction for the self-education - but if they were only hoping it would be useful in the future it wouldn't be allowed.

Thanks appreciate the advice that makes it more clear..

Sent from my GT-N7100 using Tapatalk

Please can anyone advise if we get any tax benefit or refund on a 1st home loan

Sent from my GT-N7100 using Tapatalk

Please can anyone advise if we get any tax benefit or refund on a 1st home loan

 

Sent from my GT-N7100 using Tapatalk

For an investment property or one you will be living in?

For the one I will be living in

Sent from my GT-N7100 using Tapatalk

Please can anyone advise if we get any tax benefit or refund on a 1st home loan

 

Sent from my GT-N7100 using Tapatalk

It varies by state but it's never the loan that gets you the benefit it's the buying of a new build home by a first home buyer. In Victoria they pay you $10,000 plus half price stamp duty (provided the cost is under a certain threshold). It only need be your first home in Australia - previous homes overseas don't count.

Thanks for the info.. Yes but the above is valied only for an australia resident and not a PR holder.

I want to know incase i buy a house now only on my name and my wifes name is not included on it. I charge my wife rent to stay in the house, so that it is established she does not own a property. Around 5 years later after we both get citizenship, My wife buys a NEW BUILD HOME DOES THIS RULE STILL APPLY.

It varies by state but it's never the loan that gets you the benefit it's the buying of a new build home by a first home buyer. In Victoria they pay you $10,000 plus half price stamp duty (provided the cost is under a certain threshold). It only need be your first home in Australia - previous homes overseas don't count.

The spouse can't claim it as well.

So you mean as i have my already bought the 1st home as a PR holder and even my spouses name is nowhere on the property. She cant still claim the benefit for the same ?

Would appreciate a weblink to understand this better..

Are you seriously planning on drawing up a tenancy agreement with your wife to regularise her rental payments and then pay income tax on the rental income she pays you?

Thanks for the info.. Yes but the above is valied only for an australia resident and not a PR holder.

I want to know incase i buy a house now only on my name and my wifes name is not included on it. I charge my wife rent to stay in the house, so that it is established she does not own a property. Around 5 years later after we both get citizenship, My wife buys a NEW BUILD HOME DOES THIS RULE STILL APPLY.

It varies by state but it's never the loan that gets you the benefit it's the buying of a new build home by a first home buyer. In Victoria they pay you $10,000 plus half price stamp duty (provided the cost is under a certain threshold). It only need be your first home in Australia - previous homes overseas don't count.

|If it turns out more effective in the long run WHY NOT?? The amount of rent can be small as it will also include the benefit of taxation from the morgage as part of the property will be rented so expenses etc. on it can be considered for claiming tax deductions.. I am not too well versed with the rules so questions might be a bit bizarre with the ideas i get but thats the only eye opener. My idea is to know the legalities. How to save money is a separate issue altogether.

Are you seriously planning on drawing up a tenancy agreement with your wife to regularise her rental payments and then pay income tax on the rental income she pays you?

upon thinking of it now deeply i will have to weigh out the advantages if its really worthwhile to do this and the income tax calculation over a period till we get our citizenship and then think is it worth all this to get the reduction of stamp duty and the grant of 10,000 AUD:rolleyes:

|If it turns out more effective in the long run WHY NOT?? The amount of rent can be small as it will also include the benefit of taxation from the morgage as part of the property will be rented so expenses etc. on it can be considered for claiming tax deductions.. I am not too well versed with the rules so questions might be a bit bizarre with the ideas i get but thats the only eye opener. My idea is to know the legalities. How to save money is a separate issue altogether.

|If it turns out more effective in the long run WHY NOT?? The amount of rent can be small as it will also include the benefit of taxation from the morgage as part of the property will be rented so expenses etc. on it can be considered for claiming tax deductions.. I am not too well versed with the rules so questions might be a bit bizarre with the ideas i get but thats the only eye opener. My idea is to know the legalities. How to save money is a separate issue altogether.

Stop trying to dodge taxes, just pay up like everyone else. Of course you cannot charge your wife rent and expect to make a tax advantage out of it. It would if anything be disadvantageous as you will pay income tax on rent that you are paying to or between yourselves.

Are you seriously planning on drawing up a tenancy agreement with your wife to regularise her rental payments and then pay income tax on the rental income she pays you?

It does sound a bit of an odd thing to do all for the sake dodging a bit of tax??

Stop trying to dodge taxes, just pay up like everyone else. Of course you cannot charge your wife rent and expect to make a tax advantage out of it. It would if anything be disadvantageous as you will pay income tax on rent that you are paying to or between yourselves.

You are misreading this. He is not seeking a tax advantage but trying to preserve a benefit available to first-time home-buyers. Either way this proposal I expect is completely unworkable in practice. He also needs to take into account that the grant and stamp duty reduction could be withdrawn at any time rendering any scheme redundant.

I appreciate all your comments but greysky is absolutely following where I am going with this. ...

As I said in my last comment it may not be a wise thing but it gives a more clearer idea

Sent from my GT-N7100 using Tapatalk

The best way to approach this would probably be to get divorced.

Stop trying to dodge taxes, just pay up like everyone else. Of course you cannot charge your wife rent and expect to make a tax advantage out of it. It would if anything be disadvantageous as you will pay income tax on rent that you are paying to or between yourselves.

It's not about dodging taxes it's all about making your hard earned money work for you and get the best out of it..

I was just wanting to know reg the benefit of the state and how Could it work in our favour

Sent from my GT-N7100 using Tapatalk

i had that on my mind too.. by just putting it on paper but then it struck me just for 10,000 aud of grant it would be worth putting my marriage on the line

and knowing me having got the liberty would land up in catastrophy;;:tongue:

The best way to approach this would probably be to get divorced.

The eligibility criteria for the First Home Owners Grant apply to the applicant and/or their spouse or defacto partner. So, if one of you is ineligible, both are ineligible.