457 Visa Tax in Oz

[Lynnie]

Hi,

Hubby needs to submit his tax return (2nd return in Aus). We are seeing a tax consultant in a few weeks time, but I need to know a few things beforehand.

My questions are this:

1. Can we claim for private health insurance premiums? (We do not have any medicare/family benefits as we do not qualify for it). I know you can claim for medical fees if it is above $1500 pa, but I am not sure if this is for actual medical expenses or private health fees?

2. Can we claim for ous son's (state) school books and uniform fees? (Apparantly this changed from last year?).

3. Can we claim for our daughter's day care fees? (Again - we do not receive any rebate/benefit from family assistance/medicare).

Any advice will be appreciated :ilikeit:

Thanks in advance!!

[AndreaL]

Hi Lynnie

No you can't claim for private health insurance premiums as it is a requisite of your 457, once on p.r. you will qualify for a 30% rebate of the premiums paid if you earn under $168 000 for a family. You can claim for out of pocket expenses above $2000, so once you have spent $2000 that has not been paid by your medical, you can claim 20% back on any out of pocket expenses above the $2000. Don't forget to ask your pharmacy for a tax printout as the cost of Dr prescribed medicine also adds to your out of pocket costs

No you cannot claim education rebate unless you qualify for family tax benefit part A ( only residents who earn under a certain amount)

No you can't claim daycare fees, again to access government payments you have to be a permanent resident. I believe that once on p.r. you can claim 50% back, but as I have never used daycare, perhaps someone who has can comment.

All Australian government payments are only accessible to permanent residents and in most cases you have to be earning under $150 000

Essentially on a 457 you are regarded as resident for tax purposes but cannot access any payments, hence why so many of us try to get p.r because apart from the security of not being on the 457 there are a few little perks, as in my private medical on 457 was around $400 per month and because of the rebate is now around $296.

Edited August 1, 2012 by AndreaL