Australian Workers have been duped and insulted by the Treasurer’s 2010-11 Budget announcement of a “trick and flick” approach to standard deduction for work related expenses and tax agent fees, says Ross Watson of RSM Bird Cameron.
The Treasurer announced that as an alternative Australian workers could claim a standard $500 for the 2012-13 year increasing to $1000 from 2013-14.
Australian workers who are members of a union would likely pay more than the $500 in dues exceeding the threshold for 2012-13 without even considering other valid expenses incurred.
While not intended to be a standard deduction the substantiation limit of less than $300 for work related expenses has become a default standard deduction. Had the limit been indexed since its 1985 introduction simple inflation would have taken the limit to approx $715 in 2009 using the RBA Inflation calculator as a guide.
The substantiation figure of $300 does not include the cost of Tax Agent services that will be included in the proposed standard deduction limit.
There has been no announced intention to index these proposed standard deduction figures so Australian workers have again been given the flick by this Government.