Guidance for Real Estate Employees
As a real estate industry employee, it’s crucial to accurately report your income and allowable deductions on your tax return. Here’s a breakdown of what you should and shouldn’t include:
Income
Include all income received during the income year, encompassing:
- Salary, wages, including cash or bonus payments
- Allowances
- Compensation and insurance payments (e.g., income protection insurance payouts to replace salary and wages)
Note: Exclude reimbursements from your income.
Your income statement or payment summary will detail your salary, wages, and allowances for the income year.
Allowances
Ensure to include all allowances reported by your employer on your income statement as part of your income. An allowance is provided by your employer to estimate potential expenses you may incur, such as:
- Contributions to work-related costs (e.g., mobile phone allowance)
- Compensation for specific work aspects or conditions (e.g., extreme weather conditions)
- An amount for specialized duties, skills, or qualifications (e.g., first aid qualifications)
However, if an allowance isn’t listed on your income statement but is detailed on your payslip, it does not need to be declared as income in your tax return unless you’re claiming a deduction. For instance, travel and overtime meal allowances.
Car Expenses
You can claim the cost of using your car when driving directly between separate jobs on the same day or to and from an alternate workplace for the same employer on the same day (e.g., commuting between the office and residential open homes).
If you’re claiming car expenses, utilize either the logbook method or the cents per kilometre method for calculating your deduction. Remember, if you choose one method for claiming your work-related car expenses, you can’t claim further deductions for the same car in the same tax return.
Clothing and Laundry Expenses
While conventional clothing can’t be deducted, you can claim expenses for:
- Compulsory uniforms required by your workplace
- Non-compulsory uniforms registered with AusIndustry
Note: Expenses covered by your employer or reimbursed by them can’t be claimed as deductions.
Working from Home Expenses
For individuals working from home, eligible deductions can be claimed for related expenses. However, you cannot claim items provided or reimbursed by your employer.
Tools and Equipment Expenses
You can claim the tools and equipment you use for work, either through a gradual decline in value for items over $300 or an immediate deduction for those costing $300 or less.
Gifts
Deductions for work-related gifts are claimable if you are a commission-based salesperson or property manager. However, gifts in the form of entertainment (e.g., tickets to a live sporting event) cannot be claimed.
Other Expenses
You can claim the work-related portion of various other expenses, including advertising your services and phone and internet costs related to work.
Note: Private expenses and costs reimbursed by your employer cannot be claimed as deductions.
Understanding these guidelines will help ensure accurate reporting and adherence to tax regulations specific to real estate employees. Always maintain accurate records of your expenses to support your claims.
Feel free to reach out to a member of the MaxGrowth team for any queries or further discussions on 02 9267 4468 or [email protected]