Thu 12 Jul 2018 5:54AM

allowable expenses

DU [deactivated account] Public Seen by 30

What can we claim as expenses from our individual buckets? . It was in response to a request for clarification around what $ from personal buckets could be spent on.


[deactivated account] Thu 12 Jul 2018 6:03AM

My understanding is that Jeder the organisation can claim any expenses related to the business as per the ATO guidelines here: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/

Individuals claiming expenses from their Jeder bucket need to operate within these guidelines as well, but we need to understand that in the ATO eyes it is an organisational expense not an individual one. For example the organisation can claim the cost of managing tax affairs, but individuals cannot claim this via Jeder as an expense (although you can claim it on your personal tax return) This is fairly basic when we are talking about general expenses, but could get complicated when we are talking about items that would be regarded by the ATO as assets. For example if an individual purchases a piece of equipment, or a car or a building for example, technically the organisation owns this. We also then may run into issues around depreciation etc. Maybe we need to have some guidelines around these kind of expenses.


Lyb Makin Sun 15 Jul 2018 11:28PM

Hi Kerry, thanks for pulling this together here. How about we get a bit of a document going of all the categories that are clearly allowable expenses and then those that are allowable but need more careful consideration, e.g assets? My thinking is that this needs to be something that is clear to every Collective member and so should possibly be part of the Handbook...what do others think? Lyb


Jason Emmins Mon 16 Jul 2018 2:06AM

Yes, some structure around the personal budgets and what is "allowable claims/reimbursements" would be great clarity. It may be time to review all the handbooks.


[deactivated account] Tue 31 Jul 2018 6:11AM

Hi-have created a spreadshhet based on the ACNC expense headers. Have included two columns, one for what an individual can claim for reimbursement from their bucket (ie into their hand) and another for expenses that can be paid out of a individual's bucket. (ie like paying a bill). If you think of any possible secnario that is not on this list post it here for dicussion.https://docs.google.com/spreadsheets/d/1FHBW7MzuUm0Z90qAe0Wpw8RVwMcsywgVnr3IoaqR6oI/edit?usp=sharing
The main things to keep in mind are the ATO rules that 1) It must be work related 2) you must have evidence of payment 3) no assets over $1000


Michelle Dunscombe Tue 31 Jul 2018 6:22AM

Thanks for your work on this Kerry. I think this would be a good addition to the guide we spoke of tomorrow. it will also give @sara50 something to refer to.


[deactivated account] Tue 31 Jul 2018 7:52AM

Pretty sure it was today we spoke @michelledunscombe :laughing:


Michelle Dunscombe Tue 31 Jul 2018 8:08AM

Lol yes clearly a typo


Jason Emmins Sat 18 Aug 2018 4:44AM

Thanks for this Kerry- I have made a couple of comments/questions on the gdoc- couldn't do it any other way. @kerry63 Also, is there a spot in the Jeder GSuite this doc is saved?


[deactivated account] Sat 18 Aug 2018 10:39PM

Have dropped it into the $ Jedi folder


[deactivated account] Thu 2 Aug 2018 8:38PM

I am concerned that there have been some significant expense claims made within Jeder that have not met the guidelines above. Perhaps we need to include some scenarios on how to spend $. Eg Louisa wants to buy a yacht for $11K (gst inclusive). She looks at her latest bucket report and can see that she has $15K. Can Louisa purchase the yacht from her bucket? No, not directly. Louisa can access the money from her bucket to purchase personal items by drawing wages, which she will be taxed on. She can then purchase the yacht as a personal expense for the gst inclusive price. To further clarify, if Jeder paid for the yacht from her bucket Louisa would be avoiding her tax obligations, not paying the gst component (ie the yacht would cost her $10K) and Jeder would be falsely claiming the yacht as a business expense. But what if Louisa was intending to use the yacht to host Jeder meetings on board? Still no-although she could charge rent to her bucket.
Do we need to have a discussion around how to rectify claims thay have been made to date that have not been in accordance with ATO guidelines?


[deactivated account] Thu 9 Aug 2018 7:24PM

This thread is up for discussion in our next $ Jedi zoom. If you are keen to participate, here is the poll for times/dates: https://www.loomio.org/p/ja26ghce/next-zoom


[deactivated account] Sat 11 Aug 2018 7:04AM

You can request up to around $16K as wages through salary sacrifice. You cannot be paid this directly, however. Jeder can request a community sector banking mastercard card for you for this. There are specifications on what this can be spent on. 'Everyday items' Yachts do not seem to be on the list...here is more info https://www.google.com.au/url?sa=t&source=web&rct=j&url=https://www.communitysectorbanking.com.au/wp-content/uploads/2017/04/Salary-packaging-with-us.pdf&ved=2ahUKEwiGsMLJtuTcAhUQdt4KHTOJClQQFjABegQIBxAB&usg=AOvVaw1avAMKM12pSNo76-Mcj41l


[deactivated account] Sun 12 Aug 2018 6:20PM

technically yes, and you need to be able to prove that it has only been used for 'everyday expenses' (sorry, still no yacht). the community sector card is easier for the org as it already meets ATO requirements.


[deactivated account] Mon 13 Aug 2018 8:42PM

I have copied the dicsussion re Salary sacrifice onto a thread in the $ Jedi https://www.loomio.org/d/zKd7gON2/salary-sacrifice


Michaela Kennedy Sun 19 Aug 2018 8:29AM

@kerry63 - FYI - we currently have 2 premises - Michelle's place and mine - registered with ACNC - not sure if that makes a difference. Also is it possible to keep harvests and spreadsheets in the $ Jedi GSuite folder?


[deactivated account] Sun 19 Aug 2018 8:39AM

They files are there. You could charge rent and draw this from your bucket.


Michaela Kennedy Sun 19 Aug 2018 9:50AM

Nothing in the file I can see. I'm going to Jedi's and Dollar Jedi - no documents in the file


[deactivated account] Fri 31 Aug 2018 7:01PM

Have fixed this. I had started a Dollars Jedi file where I was storing everything and then another one was started by Dee