Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
I am a podiatrist, returning to work after having 3 years off starting a family.
Long story short, i paid registration and insurance to the podiatry board in order to be employed in Feb. After red tape and delays on their end i only started work on 26th June, and my first pay was on the 10/7/17.
Now can i claim the deductibles (which were required for me to be employed) even though i did not earn anything 2016-17 financial year?
I know the timing really sucked so if i miss out so be it.
Welcome to our Community - and congratulations on the new job!
There are a few things to consider when answering your question:
Deductions aren't "cash back" - they're expenses that you offset against your taxable income. A good way to explain this is if you earned $15,000 in a year, and you had $1000 worth of deductions, you'll only pay tax on the remaining $14,000. If you haven't earned any income, there's no taxable income to offset your deductions against, so the value of the deduction is zero.
You can only claim deductions in the year you incurred the expense - so if you aren't able to claim the deduction this year, you can't carry it forward to claim next year.
We also have a handy tool to help you work out if you need to lodge a tax return or not. Check out the Do I need to lodge a tax return tool to help you work it out. If you don't need to lodge a return this year, you may still need to send us a non-lodgment advice for our records.