To help earn money while you are away try, Crop picking.
Supplementing your income while travelling around Australia.
How are you going to finance this big trip?
Why not claim your trip around Australia as a tax deduction?
To be able to do an extended trip you will need some careful planning if money is limited. There are many things to consider before embarking on such an adventure.
Two of the major considerations are:
Time: Are you retired, or do you have extended leave from work, or do you need to resign from your job and hope you can get employment when you return? These are issues that need addressing before anything else. If you are only doing shorter trips, you may be able to do it within your annual leave allocation. To do a serious trip, or make it a lifestyle change, more planning will be required. It is essential that your finances are sorted before you go, or you will be anxious about what you can afford.
Also
Money: Do you have sufficient money to do a prolonged trip? Will you need to sell, or perhaps rent-out your home, or take seasonal work as you go along, to supplement your finances? If you plan on doing seasonal work for a substantial amount of the time, you may be able to get some tax relief. If set up properly before you leave, you may be able to claim some travel and living expenses as you go along. Keeping the right records will be essential to legally claiming expenses. Your petrol, maintenance and accommodation (caravan park fees & maintenance of vehicles) plus food,
may be claimable depending on your circumstances, and the records you keep. It is advisable to ask your tax advisor about this issue before you leave; to be sure you get the maximum benefits.
For documents to help you keep track Travel Record. Also check Centrelink for a Ready Reckoner about what you can earn while still drawing benefits or a pension. See this one (which is for a single person) it was current, but a new one can be obtained from your Centrelink office on request. The one linked is for reference purposes only. This type of Reckoner does not seem to be downloadable from Centrelink's site by anyone other than Staff, but they are happy to print it out for you, just request one, which suits your own circumstances.
^ top of page
If you work while travelling around Australia, it may be possible to claim your basic living expenses as a tax deduction.
Your after tax dollar earnings might even be as good as you were getting while doing a full-time work.
Check out the Government website, which has a section called the Harvest Trail click here. There are other sites to find work, but the harvest trail is Government run. If you are interested in earning while travelling, you can plan your trip from one place to the next, and exactly the direction, and time of year you want to go. If planned properly, it is possible to follow the sun. Working is a great way to meet the locals, and employers often prefer mature workers. Some may even allow you to park your van on-site, which would also save site fees.
There are added benefits to mixing some work in with your travel. With careful record keeping and planning you may be able to claim some of your food, accommodation, plus the vehicle costs as a tax deduction. These sorts of claims make the prospect more attractive financially. If you talk to people working their way around Australia
there is big money to be made if you know where to go. Some fruit pickers make substantial amounts of money for just one months work.
If you earn good money, and are able to claim some or all of your living expenses as a tax deduction, your take home pay might be so good you might just want to just keep on travelling. If you are not working all the time, then expenses might only be able to be taken into account for the time you are working so be very careful, and check with the tax office before you go. Check with Centrelink if you are collecting a pension or benefits. There is a limit (see this Ready Reckoner for single person) to how much you can earn and still retain benefits, or even the pension. Be sure to find out before you go, rather than after earning the money, and then find you are being investigated and have to pay it back. Not everyone is interested in doing this sort of work, but it is one way you can supplement your income.
According to an accountant - as a result of Case S29 85 ATC 276 the ATO (Australian Taxation Office) accepts that shearers, on a circuit, are able to claim their motor vehicle costs, meals and accommodation from the moment they leave home. Fruit pickers should do everything they can to align their circumstances to those of a shearer. It is how you go about your work, not your occupation that counts. Tax Office: Refer TR95/34 paragraph 9:
The question of whether an employee's work is itinerant is one of fact, according to the ATO. What is to be determined is an individuals circumstances. It is the nature of each individuals duties, not their occupation or industry ,that determines if they are engaged in itinerant work. So if you arrange your work in such a way it aligns with the Shearer i.e. you arrange it before leaving home, you may be able to claim a lot of your expenses.
A detailed diary or logbook with the names and dates of every town (and make sure you record the Post Code)you visit is worth keeping because you might also qualify for a Zone Rebate, if working in more remote areas .
To help you keep records see the ATO website Record Keeping for Small Business (and see Record Keeping under heading Key Tax Information) which is what you would be doing (carrying on a small business). These attached publications ATO Deductions Allowable and
ATO Tax Depreciation of Assets are from 2005, so if you want seem to be a more up-to-date versions, but see your local Tax Office. You can order publications from the ATO On-line
but they don't allow links to it so copy/paste the following path:
http://www.ato.gov.au/corporate/content.asp?doc=/content/34875.htm&mnu=45510&mfp=001
if you wish to, and can even do your personal Tax return on-line. This could be a great if you are on the move all the time. Getting a refund deposited into your bank account can often be done very quickly, this makes it a very good option.
There are six basic rules that you need to follow to claim your accommodation, food and vehicle expenses as a tax deduction, the last 2 are not as important as the first 4:
1) Have a network of workplaces you can work. This means if you want to maximise your claim, you must organise the next farm, before you leave the current one, and go to more than one farm before returning home, or taking time of from working. (Suggestion: maybe to do 3 months work, and then just travel the rest of the year)
2) Keep the necessary diaries, log books, receipts and written evidence to substantiate your claims. The tax office will more than likely need to sight them, so make sure you keep them. (Suggestion: You might even consider using an accountancy program to help keep track of your spending and income.)
3) Maintain a "home" other than the farms you visit. (Suggestion: You can do this for instance by maintaining a bedroom at your adult child or at a sibling’s home, if you have given up your own home, you will need a postal address, not just the van)
4) Do not set up what may be perceived as permanent accommodation where you are working i.e. do not take a lease on a house or flat, just use your van.
5) Improve your entitlement to claim travel expenses by justifying a work related need to carry more than 18kgs of tools or equipment that is large and awkward, with you. (Suggestion: when travelling to remote areas, you will need the van for accommodation, so all your needs are then catered for this way)
6) Avoid staying at one farm for longer than three or four weeks, although if you are in temporary accommodation, such as a tent or caravan, you may be able to push this as far as six months if you need to.
Talk to your accountant, because spouses may well be able to claim each other as dependants. If you have children the reduction in your taxable income may increase your Centrelink entitlement, but be very careful with record keeping etc. Check with Centrelink before doing anything, if you are receiving any benefits from them as they may be affected.
The opportunities for work are endless, and are only limited by your imagination, or perhaps your skills. It is not only harvesting work that is deductible, people who for instance write travel books, or magazines articles, would also be entitled to these sorts of deductions. The towns experiencing this sort of seasonal influx, may also need help in areas such as cooking (in the town, or on the farm), retail work, mechanical, handyman (or woman), accountants or even Website owners might be able to claim travelling for research purposes, just make sure accurate records are kept. You can be sure the tax office will look upon this sort of activity as suspicious, so are more likely to investigate anyone making this sort of claim, just make sure your claim is beyond suspicion.
You may even be able to claim repairs on your home, if it is rented out while you are travelling. Be sure the repairs are carried out while you are not occupying the home. Be sure to keep records of this as well, and be sure the rent is declared as taxable income.
Seek professional advice before doing any of the above, this information is provided as a suggestion only, and does not constitute actual advice, legal or otherwise. You are responsible for checking out your own particular circumstances, and acting upon them. With careful record keeping, you may be able to be self-sufficient, and have a great time doing it.
See also Banking,
Budgeting,
Calendar, Choosing a Caravan,
News, Packing,
Planning, Preparation, and
Weather.
NO RESPONSIBILITY CAN BE ACCEPTED FOR ACTIONS TAKEN AS A RESULT OF INFORMATION CONTAINED ON THIS PAGE OR THIS WEBSITE
