COUNTING THE BEANS

Taxation is one of the most important things you will need to take into consideration when you get your first job.

One of the first forms you will be required to fill out is a tax declaration form, which allows your employer to know your taxation status and if you have a HECS (Higher Education Contribution Scheme) debt.

Newsweb spoke to Paul Hanson from Molloy, Orr & Ronan Charted Accountants, to find out what you will need to do when you get your first job.

At the end of the financial year your employer has to give you a group certificate so that you can lodge your tax return.

"The group certificate should
be given to you by July 14th "

The group certificate should have details of the income that you have earned over the past financial year and the tax that you have paid from your wages. Wages that you have earned over the year is called your assessable income, then when you go to your accountant at the end of the financial year, you can claim deduction from expenses during the year.

Some examples of deductions are: Union and association fees, Uniforms and/or cleaning of uniforms, as well as stationary and sundry items

You can also claim donations that you have made to charities and community organisations.

If you have been required to lodge a tax return the previous year, you can claim the accountant's fees from the previous year.

When working two jobs you must remember that you can only claim the tax-free threshold on one of those jobs. Mr Hanson said that the job you should claim the threshold on is the job with the most hours worked.

The Higher Education Contribution Scheme (HECS) is available to students to help with the cost of higher education after secondary school. The payments for (HECS) are crystallized one month or so after you enrol in the course of your choice, the downside is that the debt stays with you until it is fully paid for.

Paul says;
"One of the most important parts of claims at the end of the financial year is you must keep all receipts of the expenses that you have
encored to do with your job."

When you earn more than $22,000 per year the (HECS) debt phases in, it would be an idea to speak to your accountant if you have any problems.

Nick Pollock
Youth@bility Reporter