Travle related expenses

[#1]

Hi, i earned less than $18000 this year and tax deducted was $3000. I claimed for travel related expenses which were around $2000. ATO has paid me $3000 back i.e the tax deducted from salary but I havent received $2000 for work related expenses. Can anyone tell me if these deductions are paid directly to you or there is some other process for these payments? Thanks

[#2 · Accepted solution]

Hi @Sidozziee,

Deduction reduces your taxable income, please see - https://www.ato.gov.au/individuals/income-and-deductions/

Income tax is paid on money you receive, such as salary and wages, Centrelink payments, investment income from rent, interest and dividends, and profits from selling shares or property.

You can reduce the amount of tax you pay by claiming certain deductions that are directly related to earning your income, deductions are a non - refundable  amount

The first $18,200 is tax free - please see, https://www.ato.gov.au/rates/individual-income-tax-rates/?=top_10_rates

[#3]

Thank you for explaining.

[#4]

As far as I am aware u will only get $3000 back. That's all tax u paid so regardless wether u claim $2000 or $5000 in work related or travel expenses u get only $3000 back. If u were over the tax free threshold it would be different.

[#5]

Thanks for the reply. You are right. The amount you claim is deducted from your total income earned. I realised later that although i didn't get that money back but as this amount was deducted from my earned income, that must have affected my Centrelink entitlements which are based on annual income.