Tax Returns
Welcome to the funnest page in my webiste. On 1st launch this page drew all sorts of criticism and comments from those who used anonymous names like bigredbear43 on Facebook.
It led to the site being put back into maintenance mode until I did more research, edited and had site reviewed again for accuracy and Disclaimer checked (which they likely didnt read) added in more places. This page is now back to front with waiver/disclaimer early and a story!
When I was much younger, my 1st CSM was a proper soldier, a 1st Gulf vet, hard, disciplined, led by example, super fit, all of it. One of his big phrases/enforced beliefs was ‘Take your best kit.’
He hammered us on pre field or deployment inspections, everything had to be new or almost new, no roughing it and being mingers, half toothbrushes or old socks. His thoughts were we took our best everything, there was no such thing as camp boots or field boots. The boots on your feet at inspection had to be only just recently broken in and your spare boots just about broken in. No one in our company lost an assault boot sole half way across Otterburn in winter!
Spare cams, T-shirts, socks, undies, even the ziplock waterproof bags, liners had to be 1st time use. Immediately after every exercise we did Diffies and Exchanges through the Sarge to get brand new kit.
In the British Army I accepted there was no money coming back to me for my field/deployment costs. However the ADF does give you money back so why not have your kit and hygeine in top shape out bush and get something towards it?
Similar to overpaying tax in the UK for not completing a whole tax year, it will happen in Australia. From whenever you sign on until the last day of June your tax will be deducted as if equal across 26 payments.
ATO isn’t as scummy/thieving/deceptive or treacherous as HMRC. You will get your overpaid tax back easily and quickly on your 1st return.
Should you wish to use it to cover the unused portion of your Concessional Contributions which rolls forward into new tax years. Talk to your agent before you submit your 1st return, they may suggest you should complete a notice-of-intent-to-claim or a variation.
Tax Agents
Doing your tax self-assessment is possible through the My Gov and ATO-app once you’re in Australia. It is also possible to get a very cheap tax assessment done through tax season at your local mall. Pop up tax stalls appear next to every coffee shop or bakery offering to do your tax return quick and can be as low as $75.
I personally use a seasoned tax agent who specialises in military claims. Their knowledge on what I can claim has benefited me in the long term. I do pay $500 for their services but:
- That $500 is now deductable from next year’s claim
- They always get me at least twice that back in ATO refunds
Claiming
A tax deduction does not mean the government refunds the entire purchase price. Instead, a deduction lowers your taxable income, meaning you only save the amount of tax you would have paid on that money.
Claiming deductions and offsets can be very confusing for new arrivals and is where most Laterals in their 1st year get it wrong. You will hear the phrase “Just claim it on tax” from the troops and older Laterals about purchases, which will give you the impression that if you spend $280 on a ‘SWAG’ (work expense) then after your tax claim is complete you will see the whole $280 come back. WRONG!
As per the cut and pasted internet search statement above, you will only get the tax portion back relative to your tax rate by reducing your overall income. I went nuts in my first year, boots, SWAG, boots, new GPS, boots, plug in fridge, boots, new warm/wet weather gear, boots, field stores and some boots, new everything. I was thinking I might as well buy it in with put aside holiday money as I would get it all back! Right?
My tax return slapped me for not researching correctly. To the tune of thousands. The trip to Fiji I promised the missus once the holiday pot was replenished by tax refund money never happened!
My tip, create a document on arrival where you can track your purchases as you make them, keep receipts, keep your work purchase order emails. If you’re buying through an app, paying through Gpay or banking app there will often be on the statement/order history for example:
- 27 Jan – Rebel Sport – $58.99 – Black light weight Asics
- If this correlates to a purchase you place on your tracker, in an audit you can provide evidence or get more detailed information through your Rebel Sport membership account/app
I’m tech poor and do what works for me so I use excel. If my tax agent doesn’t understand something on my tracker or consider it not claimable they will call to discuss it before they add it to the claim. Or they will advise I don’t claim that item. I also use my tracker to remind me of things to claim that aren’t widely known or I find during my research into annual changes. But my agent will confirm if I can!
I REPEAT (for the benefit of bigredbear43 types). I USE A VERY EXPERIENCED TAX AGENT TO APPROVE/CONFIRM WHAT I CLAIM. I RECOMMEND ALL NEW LATS USE AN EXPERIENCED (WITH ADF) TAX AGENT.
IF THEY DONT BELIEVE ITS CLAIMABLE, ITS REMOVED/NOT!
Below is a redacted portion of mine from previous years.
Reseaching the grey areas, asking around longer serving ADF members and using an ADF specialist tax agent will get you best results.
Usual claims include:
- Stationary
- Phones and cases, screen protector (you will use your phone an insane amount at work and break a few)
- Laptop and protective items
- Backpacks
- Yeti Flasks/Mugs
- Sunglasses
- Sun cream
- Mosquito repellent
Claims that may need justified before Tax Agent will add them:
- Only PTI’s can claim sports gear, right? But I buy all black light weight Asics at Rebel Sport as my bug out ‘FIELD’ footwear to wear in sleeping bag
- Thick sole Croc’s from BCF are for field showering/post long marches so I don’t get bindi spikes in my feet
- Regular flip-flops left permanntly at camp for post PT showering
- Personal grooming (Haircut, home hygeine supplies) is not claimable. Is field hygeine personal grooming?? I let my Tax Agent decide each year! like my 1st CSM taught me. I use brand new Mach 3 razor blades out bush and only use them 2-3 times for hygiene reasons. That’s why I claim 12 ‘bush’ blades per year if my Agent says its ok to
- I replenish my ‘field’ oral hygiene stores after every exercise, toothbrush, paste, interdentals plus soaps and other wash items, keeping my operational deployment stores ready at all times
- I replenish my personal small med pack for field quarterly or post ex so things are in date should I deploy, paracetamol, band aids, strepsils, savlon etc
- I use my own purchased sport socks in boots and not the green issue ones. I buy new bamboo field underwear pre-exercise and discard them at the end
- I got ‘ordered’ to attend a function in a dress code not issued at work such as a tuxedo or suit (I cant claim for the ‘Function’ but I do the outfit if needed)
- I keep a bike at work, base standing orders says a helmet is mandatory, that’s why I bought the best, safest one and claimed it
- The large black suitcase I bought was for a work course in Melbourne
I REPEAT AGAIN (for the benefit of bigredbear43 types). I USE A VERY EXPERIENCED TAX AGENT TO APPROVE/CONFIRM WHAT I CLAIM. I RECOMMEND ALL NEW LATS USE AN EXPERIENCED (WITH ADF) TAX AGENT. IF YOUR AGENT SAYS DONT, DONT!