WEBVTT

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Your first Defence posting comes with

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plenty to organise, a new base,

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somewhere to live, and possibly a move

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away from family. Tax paperwork probably

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isn't at the top of your list, but a few

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assumptions can lead to incorrect claims

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or missed entitlements.

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Here are five tax mistakes to avoid.

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Number one, assuming a compulsory

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posting makes every travel expense

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deductible. The costs of relocating your

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home are generally private,

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even when your employer requires the

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move. Your normal trips between home and

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your regular base are also generally

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private. Travelling between workplaces or

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away on duty can be different. Keep

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those trips separate from your

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relocation and daily commute.

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Number two, claiming a deduction just

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because an allowance appears on your pay

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slip. An allowance and a deduction are

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separate things. Check how the allowance

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is treated. Then check whether you

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actually incurred an eligible expense.

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Don't simply copy the allowance amount

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into your deductions. Some

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allowances compensate you for conditions

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of service rather than something

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you purchased. Number three, claiming

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equipment or expenses that Defence

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supplied or reimbursed. If Defence

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provided the item, you haven't paid a

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purchase cost to claim. If you paid

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first and were fully reimbursed, you

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generally can't claim that expense

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again. For eligible items you bought

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yourself, claim only the work-related

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portion. More expensive equipment may

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need to be deducted over time. Number

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four, assuming every ADF member gets a

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full-year Medicare levy exemption, your

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entitlement to full free Defence medical

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treatment matters along with your

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partner and dependent children. If you

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joined Defence during the year, check

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when your medical entitlement started,

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not simply the date you arrived at your

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first posting. Your circumstances

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determine the days you can claim and

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whether the exemption is full or half.

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Number five, waiting until tax time to

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remember what you spent. Save receipts

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as you go. Note what each item was used

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for. Keep records of eligible work

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travel and document work use of your

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phone or equipment. Keep reimbursement

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records, too, so you can tell what you

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personally paid. A simple folder on your

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phone can make your first return much

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easier. Before your first tax return,

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check your travel allowances,

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reimbursements, Medicare entitlement,

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and records. At DefenceTax, we help ADF

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members understand what belongs in their

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return. Book your appointment with

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DefenceTax at defencetax.com.au

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or call 0418-327096.