Home' Navy News : September 17th 2009 Contents Take advantage
of your Job
Own an investment
property for as little as
$49 per week.
Call 1300 649 700 Now
for your Free Assessment
present an ideal
time to invest
Let our Finance
with 40 years
All content included is intended as general information only and does not constitute professional advice.
Book online www.jetpets.com.au
ISO-9002 Quality Assured
Call 1300 668 309
Pet travel made sim
At Jetpets your Personal Pet Travel Consultant ta
care of everything, making it easy for you and
the journey quick and comfortable for your pet.
Ask for your Defence discount
DHA approved receipts
Defence receipts First-class network of boarding kennels
September 17, 2009
THE level of work-related
deductions made by some
ADF members in their
income tax returns has
been noted by the Tax Office as
This article may help you as a
Royal Australian Navy member to
correctly claim work-related deduc-
Remember that even if you use
a tax agent to lodge your tax return,
you are responsible for the deduc-
tions you claim. Some Navy mem-
bers have used unregistered tax
agents in the past, so it's important
you seek a reputable and registered
To check if your tax agent is reg-
istered, visit www.tabd.gov.au
equipment between home
The cost of travel to and from
work is usually not an allowable
deduction. However, you can claim a
deduction for the cost of transporting
bulky tools and equipment between
home and work only if the following
you are required to use them at
there is no secure area for storing
them at your workplace.
An example of where Navy mem-
bers can claim the cost of transport-
ing bulky equipment include:
David keeps his sea-going kitbag
at home because there is no secure
place to keep it at work. David's unit
was placed on a 24-hour high readi-
ness notice, which required him to
bring his kitbag into work. The cost
of transporting the kitbag into work
is an allowable deduction.
David had a sea-going activity
that required the use of his kitbag.
David can claim the cost of trans-
porting his kitbag between home and
work for the sea-going activity.
Home office expenses
If you work at home you may
incur running expenses for services
such as lighting, heating and cooling,
cleaning costs and the cost of repairs
to furniture in the home office. You
can also claim the work-related part
of the decline in value (depreciation)
of your office furniture and fittings.
You can claim a deduction for all
the running costs for the home office
if that area is used exclusively (100
per cent) for work-related activities.
If you work in an area of the
home not used exclusively (100 per
cent) for work-related activities, you
can claim a deduction for part of the
total running costs if you work there
when others aren't present or you
use a separate room.
You can either keep a diary of the
details of your actual costs and your
work-related use of that area of the
house, or use a fixed rate of 26 cents
per hour for use of the facilities in
that area of the house.
Jim is a Navy officer. He works in
his lounge room where the rest of the
family can watch television, so the
costs of lighting and heating/cooling
are private and not deductible.
If Jim uses the room when others
aren't present, or goes into a sepa-
rate room, he can claim a deduction
for additional running costs associ-
ated with the work activities. This
applies even though the room is not
set aside solely as a home office.
If you are doing an educational
course that results in a formal quali-
fication, you can claim a deduction
for self-education expenses at item
D4 on your tax return if:
the course maintains or improves
the specific skills or knowledge
you need in your current role; or
the course results in, or is likely
to result in, an increase in your
income from your current role.
Self-education expenses can
include textbooks, stationery, student
union fees, course fees, certain travel
expenses and the decline in value
(depreciation) of equipment to the
extent it is used for self-education
If you incur costs for attending
seminars, conferences, workshops or
training courses connected to your
work activities, you should claim
them as other work-related expenses
(item D5 on your tax return).
You cannot claim any costs paid
or reimbursed by your employer.
Joan is a technician and is studying
for an advanced system technician diplo-
ma. Because the course relates to her
current job and will improve her chance
of promotion, Joan can claim a deduction
for its cost.
If Joan was studying to become a
medical officer, she could not claim a
deduction because it would be unrelated
to her current role.
Gym memberships and fitness
Navy members must maintain a high
level of physical fitness, but some in spe-
cial units must maintain fitness levels
well above the general Navy standard.
Examples of these include physical train-
ing instructors and those in special com-
You can only claim a deduction for
costs for attending a fitness course or
gym membership fees if you can demon-
you're required to maintain a level of
fitness well above the general Navy
physical activity is an essential and
regular element of your job.
John is paid extra remuneration to
maintain the very highest level of fitness.
To maintain this level, John does extra
training three times a week at a city gym.
His gym fees are an allowable deduction.
Jennifer undertakes fitness training
three times per week while on duty. She
also attends her local gym in her own
time. Because Jennifer is not required
to maintain an above standard level of
fitness, she cannot claim a deduction for
her gym fees.
Physical training clothing
As part of your physical training you
are required to wear suitable sports attire.
Whether you can claim a deduction for
the cost of this attire depends on the type
of clothing worn. The types are:
Conventional physical training
Non-compulsory physical training
Compulsory physical training
Conventional clothing such as track-
suits, shorts, T-shirts, socks and sports
shoes are not allowable deductions.
Non-compulsory physical training
Although certain Navy units have
designed their own physical training
clothing with the logo or emblem of their
particular unit, this clothing is non-com-
pulsory and is not part of the traditional
Navy uniform, and cannot be claimed as
Compulsory physical training
Where physical training clothing
forms part of a compulsory uniform, you
may claim a deduction for costs incurred.
Examples of compulsory physical
training clothing include official mono-
grammed shirts, shorts and tracksuits that
clearly identify to the public that you are
a member of the ADF, such as a shirt
with an official monogram of a ship's
Expenses for sporting
To maintain physical fitness, many
members of the Navy choose to partici-
pate in a sporting activity. A deduction
is allowable for expenses incurred when
taking part in a sporting activity if you
are considered to be on duty while par-
ticipating in the activity and:
you're participating as an official Navy
representative at inter Service or com-
bined Service competitions; or
you're required to take part in the
activity as part of your normal income
Doug is a submariner in the Navy and
he's required to play rugby union on his
weekly sports afternoon, when he is con-
sidered to be on duty. He also plays with
the same Navy team in the local civil-
ian competition on weekends. Doug can
claim a deduction for expenses incurred
for his sports afternoon, but not for his
Further information regarding common
deductions specific to ADF members is availa-
ble on www.ato.gov.au/individuals and select:
Your situation -- Employment -- Work-related
expenses -- Deductions for specific occupa-
Information courtesy of the
Australian Taxation Office.
Cans and can'ts of work deductions
DEDUCTIONS: The ATO has noticed a rise in claims. Photo: LAC Aaron Curran
Links Archive September 3rd 2009 October 1st 2009 Navigation Previous Page Next Page