Taxing Times: NTEU launches Tax Service as ATO Ruling cuts into university research
17 July 2000
The National Tertiary Education Union says that an ATO tax ruling on self-education is making it harder for academics to undertake study leave.
The Tax Ruling (TR 98/9) states that accommodation and living expenses are not deductible if a person is deemed to have established a new home while on study leave.
‘The ATO is compromising university research with its approach to this issue,’ said NTEU President Carolyn Allport. ‘The criteria used by the tax office to determine whether or not someone has ‘established a new home’ is a moveable feast.’
‘It’s hard for academics undertaking sabbatical leave to calculate in advance whether or not their expenses will be tax deductible. Because of the pathetically small travel allowances provided by universities to support study leave, this is having a serious impact on people’s capacity to undertake research away from their home base.’
`Universities expect staff to undertake research, and in a global environment that usually involves some travel away from home,’ said Dr Allport. `The Union has fielded hundreds of inquiries from staff on this matter, and has asked the ATO to review the ruling.’
This is just one issue that has led the NTEU to establish a national tax service for members, which is being launched this week. Other issues include the requirement for ABNs for academics publishing or undertaking consultancies arising from the new tax system, and the ATO’s treatment of royalty income.
The service, conducted in association with Stannards Accountancy, offers a free phone and email advisory service to NTEU members, and discounted tax returns. The service will also provide free seminars to members around the country. The first seminars are scheduled for 19th July (Newcastle University), 20th July (University of Technology Sydney) and 27th July (Melbourne).