Call Centre Operators – Income and Work-related Deductions

Call centre operators are expected to lodge tax returns at the end of the financial year. This guide will help you with your tax return by providing information on what income to declare and what work-related deductions you can claim.

In most cases, people are not sure of what incomes and allowances need to be declared as well as the deductions that you can take advantage of. Let us get right into it.

Call Centre Operators Income

As you may be aware, taxes, world-over, are based on income. In definition, an income is anything that you may have received over the course of a financial year in return for services that you have carried out. The most common form of income for call centre operators is wages or salary. Other forms of income may include tips, commissions, bonuses and allowances.

Salaries, Wages and Allowances

You should record and report all of the following:

-Your regular wage or salary before tax is deducted (this is what is known as your gross income)

-Any allowances that you received as part of your wage or salary package – for instance, a car allowance

-Overtime payments

-Payments for leave taken, such as annual or sick leave

-Payments in lieu of notice

-Payments made to you when you ended your employment

Allowances are categorized as assessable income, which means that they are taxable. In addition, it is important to note that there are no deductions, which are deducted from the allowances. 

However, you should not include reimbursements for expenses incurred while performing your job – for example, if you are given extra money to cover the cost of travel to and from work.

Work-related Deductions

There are certain deductions that you can claim if they relate to your work as a call centre operator. These deductions can be claimed for the costs of:

-Tools and equipment that you use for your job

-Uniform with a logo

-Self-education expenses

-Union fees and subscriptions

-Home office expenses

-Costs of managing your tax affairs

-Travel expenses for work related activities.

You can only claim deductions for work-related expenses that you have actually incurred. You cannot claim deductions for items that you have already been reimbursed for by your employer.

You must also have receipts or other evidence to prove that you incurred the expenses. 

The ATO app has an app, myDeductions, which is helpful in keeping track of your deductions.

For more information on work-related deductions, see the ATO website.

Generally, work-related deductions are just as the name implies; these are deductions from expenses that directly relate to your job. 

Importance of Record Keeping

One of the biggest mistakes that call centre operators make is, not keeping track of their deductible expenses throughout the year. This often leads to a higher tax bill at the end of the financial year.

You can avoid this by keeping records of all your work-related expenses throughout the year. This will make it easier for you to calculate your deductions when you do your tax return. While this is the general provision, there are some exceptions to the same, which include:

  • Receipts that are hard to get
  • Overtime meal expenses
  • Receipts for travel and meals
  • Receipt for small expenses

Over and above, for the best chances of getting your deductions, it is necessary to provide the required proof, which is the importance of records. 

For call centre operators, there are so many deductions that you can enjoy. All you need is to lodge your tax return in the right manner. Accurate Business & Accounting Services is always ready to help you with all matters that pertain to income and tax deductions.