Tax question

[Desmo]

Just a query, but if I end up working on a dive boat next season, can I then claim dive tickets, medicals, skippers tickets and dive gear as a tax deduction?

[Dubs]

will you be paying your own tax? ie sole trader? or will you be an employee?

Dubs

[Desmo]

Employee.
I could go in as a sole trader I suppose, I have an ABN.

[Dubs]

tax time is only 2 weeks away - ask a tax guru then

Dubs

[Desmo]

Yeah, will do.
This'll be for next year though.

[Captain Starfish]

Usual go see an accountant blah blah blah

It depends on your level of certification and how you pass the hobby test. From what I've heard from other divers getting into the game (or getting out of it)...

< Divemaster, forget it.
Divemaster = possible but iffy.
Instructor = probably.

Hobby test? It needs to either be your main ($ for $) source of income or it needs to earn more than $20k per minimum and (in the case of >$20k minimum but not main source of income) you can only apply the deductions up to the amount of tax you pay on that $20k of income.

And as usual you cannot claim until you are deriving the income. So the cost of instruction up until you are engaged professionally as a divemaster is probably not deductible. You may, however, be able to swing a deal with a shop whereby you can defer this payment somehow until you're receiving an income.

But, really? Go talk to an accountant. There have to be a few up there.

[shmoo]

re the diving course fees, medicals, skippers ticket - that would probably all be considered training expenses, so I assume it would fall under the "self education expenses" provisions.

When I went through it all a couple of years ago, basically the rule was that you can NOT claim the costs if the purpose of said expenses is to get you a job. You might however be able to claim if the expenses were to increase your potential earnings within your existing job. Its all to do with the link between your expenses and your work.

So if they give you a job. Then they say "go do this training course" and "go buy this" then you might have a chance.

I certainly wouldnt be buying anything before you start the job. Wait and find out.

[Desmo]

Cheers guys.
My dive tickets I'm not paying for, so I'm more interested in the gear side of things, the skippers tickets will definitely be to improve my income.
I'll talk to a tax person in a few weeks and see what they say.

[shmoo]

meh. its self assessment. just do it

[Brougham]

spoke to a mate that does commercial diving (i.e. as a job).

he said basically what CS said - unless you're a dive master or higher it's pointless as the gear is useless to your job on a tourism dive boat. you need to be certified as a divemaster or higher to lead a group underwater and thus dive as a "job" so only then can you claim your gear etc.

[Desmo]

unless you're a dive master

Sweet

[Brougham]

fair way to go to get your PADI Divemaster certification though mate

[Calamity]

I would have thought that if it is something you needed to be able to do your work. i.e. buying all the safety gear to work on mines etc. where the employer does not provide it it is tax deductable.
Uniforms, licenses all come under the same catagory. If you need it to be able to do your job then it is tax deductable.

My 2c worth

Cal

[Captain Starfish]

fair way to go to get your PADI Divemaster certification though mate

Aha. Especially for someone who hasn't dived a lot (at all?)

I'm only just doing mine now. It's not trivial, it's a fair old commitment.

If someone was asking I'd be saying: get your open water, do some diving. When you're comfy (20-30 dives?), start buddying up with complete numpties and see if this is _really_ what you want to do with your life.

[Captain Starfish]

Just thought I'd clarify the above.

Divemaster/instructor somewhere like Exmouth (ie tourist type diving) is hard work requiring lots of patience with idiots for not much money

If you're looking at a way to make a living, DM/Inst is not it. Commercial diving will give you better dollars for your time, but that's hard work too.

So the suggestion to do your open water comes from: find out if this is something you are absolutely passionate about, if it is then DM/Inst is a nice way to survive (not prosper, survive) whilst you do something you love.

[Jollie]

Ultimately it comes down to a timing issue... if you are employed in a dive master capacity (whether certified or not) prior to paying and commencing the course and you employer suggests the course (best supported by a letter from your employer) you could reasonably argue that the course was for professional development or self education. If this is the case then you would be able to deduct the expenses with the first $250 being non-deductible. one thing to consider if you choose to claim the expenses is that the first $250 can be applied to expenses which otherwise wouldn't be deductible ie. cost of child care whilst attending the course.

With regards to the purchase of gear, provided the gear is needed for work you can claim as a tax deduction the portion which relates to your work related usage. you would need to reasonably look at your usage and if you intend to use it 50% of the time for work then you could claim 50% of the purchase cost as a deduction (subject to the $300 depreciation rules). given the cost of purchasing diving gear i would suggest that in all likely hood an immediate deduction would not be available and you would need to depreciate it over a number of years. once again there needs to be a reasonable nexus between you current employment and the expenses incurred.

[Desmo]

Just thought I'd clarify the above.

Divemaster/instructor somewhere like Exmouth (ie tourist type diving) is hard work requiring lots of patience with idiots for not much money

Been offered work next season doing whale shark dives.
As I said, the courses I won't be paying for (Divemaster/nitrox/rescue etc ), so I'm just seeing if I can claim any gear I will need to do the job.
I also want to do my commercial /coxswains courses too, which I will have to pay for.

[D'Artagnan]

I had the option of taking over a dive operation on a little tropical outpost. Still kicking myself that I didn't

D'Art

[Desmo]

I live on the Ningaloo, I don't think there is much chance I won't enjoy the diving.

[Brougham]

whale shark dives are snorkling only, no scuba allowed.

so claiming scuba gear is out!