tax tips for australian students

18
Tax Tips *For Students! *For students who are Australian residents for tax purposes

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Post on 17-Aug-2014

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Lodging a tax return can often be a daunting process for students… But it doesn't have to be! As a student, It really does ‘pay’ to understand your tax obligations, so CPA Australia have created an essential guide to help students, and their parents navigate the process. Save yourself from stress this end of financial year and learn these ‘top tax tips’ from CPA Australia. *Note: These tax tips are for students who are Australian residents for tax purposes for the year ending June 30, 2014.

TRANSCRIPT

Page 1: Tax tips for Australian students

Tax Tips

*For Students!

*For students who are Australian residents for tax purposes

Page 2: Tax tips for Australian students

Lodging a tax return can seem daunting for students. And for parents, helping to navigate, these uncertain

waters can be challenging… But it doesn’t have

to be…

Page 3: Tax tips for Australian students

with t

hese

top ta

x

tips for

studen

ts From CPA Australia

Save yourself from stress this end of financial year

Page 4: Tax tips for Australian students

1. Obtain your refund for tax withheld

Page 5: Tax tips for Australian students

The only way you can get back the income tax that has been

withheld is to lodge a tax return.

Tax can be withheld from your pay, and any interest income you earned during this financial year if

you have NOT provided your tax file number (TFN).

Page 6: Tax tips for Australian students

2. Identify ALL your sources of assessable

income!

Page 7: Tax tips for Australian students

This includes any income earned from:

Working as an employee or contractor… (including tips).

Investment income from bank interest or dividends on shares received.Distributions from a family trust or partnership.

Government payments received such as Austudy & youth allowance, including any grants or awards.

Page 8: Tax tips for Australian students

3. Consider the special rules

for those under 18.

Page 9: Tax tips for Australian students

If you’re under 18 some types of income may be taxed at a higher rate…

The types of income this applies to are: Income received as a beneficiary from a trust Interest, dividends, rent & royalties

Page 10: Tax tips for Australian students

“Know yours?”

4. KNOW your

deductions!

“Yep!”

Page 11: Tax tips for Australian students

Things you

can claim

You may be able to claim deductions for some expenses related to the income you

received.

But remember you must have the necessary receipts or credit card statements.

Uniforms

Protective clothing

Related mobile and internet costs

Subscriptions

Union fees

Page 12: Tax tips for Australian students

5. Claim the RIGHT tax offsets!

If you receive Austudy, ABSTUDY, Newstart Allowance,

youth allowance or other government education

payments, you may be eligible for a beneficiary offset. This

ensures you won’t pay tax on those payments.

Page 13: Tax tips for Australian students

If your study is directly related to maintaining or improving your skills in your current job, you can claim self education expenses!

These include:

Course books Text books Stationery Student union fees Depreciation of assets

like computers & printers

6. Identify self

education expenses!

Page 14: Tax tips for Australian students

7. Understand your HELP DEBT

Page 15: Tax tips for Australian students

If you have a HELP Debt… Don’t fret!

Repayments only commence once you earn over $51,308!

(for year ending June 30, 2014.) The specific amount required to be repaid will depend on many factors including your taxable

income.

Page 16: Tax tips for Australian students

8. Know if you are a resident for tax purposes

Page 17: Tax tips for Australian students

If you are an overseas student studying at an Australian education institute for six months or more, you WILL be regarded as an Australian resident for tax purposes.

That means you will pay the same tax rate as other residents and have access to the tax free threshold.

You are only entitled to a pro rata tax-free threshold if you are only an Australian resident for part of the year.

Page 18: Tax tips for Australian students

You should always

consult your

registered Tax

agent.

Happy EOFY

from CPA

Australia.

These tax tips are for

students who are

Australian residents for

tax purposes for the

year ending June 30,

2014.