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Re: Can i claim profession related expenses, or do i submit a Non Lodgement Advice?

Newbie

Views 1798

Replies 2

Hi all,

 

Hopefully someonecan clarify for me.

 

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.

 

Thanks in advance for any assistance!

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

G'day Bogonippins                         

 

So what I understand, is you had some expenses in Feb 17 for registration and insurance .

You started work  26th June and your  first pay was on the 10/7/17.

 

Can you claim the registration and insurance for occured since you were paid.

Income must be declared in the financial year it is received, not the year it relates to.

So if you had nil income for fiancial year 2017, there is nothing to be able to deduct on.

 

Further the expenses are unable to be moved into a different fiancial year.

 

Which means you may be eligable for Non Lodgment Advice.

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time.
2 REPLIES 2

Most helpful response

Devotee

Replies 0

G'day Bogonippins                         

 

So what I understand, is you had some expenses in Feb 17 for registration and insurance .

You started work  26th June and your  first pay was on the 10/7/17.

 

Can you claim the registration and insurance for occured since you were paid.

Income must be declared in the financial year it is received, not the year it relates to.

So if you had nil income for fiancial year 2017, there is nothing to be able to deduct on.

 

Further the expenses are unable to be moved into a different fiancial year.

 

Which means you may be eligable for Non Lodgment Advice.

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time.

Former Community Support

Replies 0

Hi @Bogonippins,

 

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.
  • Finally, you'll need to work out whether you're considered to be an employee or a contractor, as this will change the way you claim your deductions. Contractors are essentially small business owners, and the type of deductions small business can claim are different to the deductions available to employees.

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.

 

Hope that helps!