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Re: Claiming deductions if you earn under 18,200

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In a scenario where I earn $1000 gross during the financial year, all from the one employer and they withhold $100, I would obviously get my full $100 back. But what happens if I have genuine deductions I am eligible to claim such as $100 steel cap boots? Am I entitled to a larger tax return or does it remain $100?

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Hi @soccerplayer,

 

Welcome to our Community!

 

Generally speaking, claiming a tax deduction for work-related expenses that relate to you directly earning your income will reduce the amount of tax you pay.

 

If you earn less than $18,200 and claimed the tax-free threshold, you are only entitled to receive the amount of tax back that was actually withheld. Claiming deductions won't give you a higher refund than you're entitled to. As suggested by @TeaWithLunch, you should still report any deductions you're entitled to, so your tax return is correct.

 

You can find more information about deductions you can claim on our website. Alternatively, if you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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Hi @soccerplayer,

 

No, you won't get anything extra.

 

If your $100 boots are a deduction, that will simply reduce your taxable income from $1,000 to $900. The tax payable on either amount is still zero. So you'd get back all the income tax withheld by any employers, but you won't get anything more.

 

See:

https://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-and-rebates/

 

Welfare is the commonest way of getting actual payments from the government. The tax system generally only takes money from you; even tax refunds are just returning excessive amounts (paid either by you or by employers on your behalf).

 

PS: I still think you should put in deductions. When I do my tax return each year, I look at the previous year's return and check whether I have forgotten any deductions that I am entitled to. Once your income goes up, seeing all the deductions you've been making will jog your memory. Plus you can use all that info to argue with your employer that they should be giving you allowances for all your expenses.

Best answer

ATO Certified

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Hi @soccerplayer,

 

Welcome to our Community!

 

Generally speaking, claiming a tax deduction for work-related expenses that relate to you directly earning your income will reduce the amount of tax you pay.

 

If you earn less than $18,200 and claimed the tax-free threshold, you are only entitled to receive the amount of tax back that was actually withheld. Claiming deductions won't give you a higher refund than you're entitled to. As suggested by @TeaWithLunch, you should still report any deductions you're entitled to, so your tax return is correct.

 

You can find more information about deductions you can claim on our website. Alternatively, if you have further questions, you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

Newbie

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Hi Thanks for this set of questions its helping me out. I have the same issue only my deductions are around $9500 but the amount of tax I have paid is only $5000. Down to the fact I only worked for half the year and was paying for work related courses the other half the year. My question would be is it possible to leave off some deductions from this year and put them down for next year so my deductions would be higher next year and lower this year, as I will be paying much more tax next year. Or does this simply work out as a tax loss and is calculated next year anyways?

 

Thanks, confused and skint!

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Hi @soccerplayer and @glenrack,


Thanks for your question's.


A deduction reduces your taxable income, and then your tax is calculated on that income.  You claim  deductions in the year that you incurred the expenses. 

 

You can claim all your deductions as this will reduce your taxable income. From  what you have advised your tax will reduce to zero, and you will be refunded the tax that has been withheld.


@glanrack work related courses are only claimable if you are employed and they directly relate to your employment. Check out our page on self-education expenses.

 

Hope this helps

 

KylieS

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