1 Phone Link Ups Record Keeping For remote area In Home Carers Linked to NSW Far West Family Day Care and In Home Care Service Introduction This discussion paper has been prepared by an experienced In Home Carer (IHC) to offer some professional supports and guidance to In Home Carers linked to the Far West Family Day Care and In Home Care Service. The paper will be used to form the basis of discussion for a two part series of phone links is facilitated on behalf of Children s Services Central, the NSW Professional Support Co ordination Unit. Covered within this paper is information about: Explaining Allowable Absences Filling out the Time Sheet ABN and other Taxation matters Income protection insurance 1. Explanation of the Allowable Absence Holding fees: As a rule IHC does not have holding fees as simply either a business is not operating (i.e. Carer unavailable) or it is open. If the family do not use care, this is recorded as an absence and the full fee is charged. The reason this process is in place is due to the fact that it is very difficult for an IHC to make up the work if the family doesn t want care for whatever reason. Absence codes: is recorded as an A if the child is away from booked care. In situations when a child is away or absent from booked care, the code used to record this absence has changed with the new administration system that commenced in November Families have access to a total of 42 days for each child to allow for absences. NB. After the 42 days have been used parents will need to supply a doctor s certificates for any additional absences. The number of absences allowed through sickness with proof of a doctor s certificates is unlimited. 2. Filling Out the Timesheet Attendance record for payment of Childcare Benefit. Steps to take in completing your Timesheet to record attendance Starting at the top of the timesheet the CCB approval number needs to be circled IHC 1 6PX 1334 (NB if your timesheet doesn t have this don t worry). Next fill in parent s and carer s full names (including surnames). Week ending date must be filled in (NB Week ending is always the applicable Sunday). Circle Yes/No for contract hours.
2 2 Fill in child s full name, Identification (ID) number if available and contracted hours (at the bottom of the timesheet) for each child before care starts each week. ABN and CCB % It is important that the parent signs in and out each day, using real or exact times. It is noted that no care arrangement in general begins at exactly the same time each day and it is essential that the correct times be recorded. There is always a possibility that we could be audited and IHC and it is not acceptable to present bulk signing). When care has finished for the week complete the bottom section of the timesheet using data from the fee estimator (see page 3), which provides the CCB amounts and fee totals. Then fax the timesheet to Far West Family Day Care and In Home Care Service (Fax ) each Monday before 10am. For the timesheet to be processed please note the signing for payment section doesn t have to be signed, however signing in and out each day is required. When payment has been received both parties can then sign the timesheet. It is important that In Home Carers post originals to the Far West Family Day Care and in Home Care Service regularly (i.e. each month) as the service maintains these forms to cover all requirements of the funding body including the potential of auditing which may occur at any time. ATTENDANCE RECORD FOR THE PAYMENT OF CHILDCARE BENEFIT SAMPLE
3 3 FEE ESTIMATOR SAMPLE TIMES THAT THE ESTIMATE HAS BEEN CALCULATED ON (This sample is provided to show that you can check this that your payment matches the hours that you have worked).
4 4 3. ABN (Australian Business Number) In Home Carers are considered as Sole Traders in the workforce by the Australian Taxation Office (ATO). This means that In Home Carers are required to have an Australian Business Number (ABN) that is obtained in a simple process by applying to the Australian Taxation Office. When registering for your ABN, IHC do not have to register for GST as childcare is deemed to be GST free by the Australian Taxation Office. This mean when charging an employer for childcare GST is not added. 4. Income Protection Insurance Income Protection Insurance is a type of insurance that provides an income coverage should an individual not be able to work for a range of reasons such as an accident leading to totally disability and inability to work, or in a situation when a person may have a temporary injury or illness. It is recommended that IHC consider income protector insurance because as a sole trader if you are sick or incur an injury then you will not be covered by your employers work cover insurance and therefore will not be receiving any income. To find out more about Income Protection Insurance it is suggested that an approach be made to your local bank or insurance company and check out if they have such a policy. Read each policy carefully to make sure you are covered in situations such as if you have an accident or temporarily unable to work. Case study: As an example: I pay about $ 15 per month for my cover and I am able to claim this as a deduction on my tax. It also makes me feel secure because if I do have an accident and can not work them I will be getting some income to pay my car loan. 5. Taxation General Information Sole traders can fill in a Tax Pack and Supplement or go online with ETax and fill in a Tax Return once a year in the same way as an individual who is employed and paid a wage. The online ETax program is very easy to follow with plenty of help. The basic Tax Calculation is as follows: Taxable Income is worked out like this Income less deductions Equals Taxable Income Final Tax Payment is worked out below Taxable Income plus Medicare levy less Tax Offsets Equals Tax Payment
5 5 Taxation Income Income is the gross amount of money you earn; this does not include the parent or carer levies. The Far West Family Day Care and In Home Care Service distributes a Payment Advice Summary annually in July, which has the full amount of money, each IHC has earned for the applicable financial year. Taxation Deductions: General Deductions reduce your Taxable Income. Deductions are expenses you have had relating to your work. Carers are eligible to claim many work related items as a taxation deduction. When an IHC purchases any work related item, it is important that a tax invoice/receipt is obtained and that theses receipts are keep as evidence if these are going to claimed as a work related expense within your annual Income Tax. Case study: I have a system where I have a small notebook and an A4 sized shoebox labelled the year as applicable eg 2008 Tax. After coming home from town I collect all my receipts and list in the notebook what I bought and how much it costs. I then put the receipt in the shoebox, I then do not have to worry about the receipt fading and just add up my deductions from my notebook when I do my tax. Notebook Example Receipt 1: paints and art materials $25.35 Receipt 2: motel room $ Receipt 3: computer memory stick $35.00 List of sample items you can claim as a work related expense: stationary art and craft supplies equipment for children children s books accommodation expenses at school events sunscreen school shirts, uniform etc. Carer s levy of $3.50 per week insurance public liability and income protection phone calls meals at minischool safety and first aid equipment training and education
6 6 memberships to childcare associations, etc. Presents and gift to In Home Care children bank fees Taxation Deductions: Car Expenses In Home Carers may claim work related car expenses as part of their annual income tax processes. Case study to illustrate this: I personally save at least one thousand dollars by claiming my car expenses the correct way. To claim car expenses an IHC must keep a logbook, which includes odometer readings, and written evidence of all car expenses with the exception of fuel and oil costs. Logbooks can be purchased at most newsagents or simply create a table on the computer or rule up a lined book. There are three parts to recording, these should all be kept together or in the same book. 1. Logbook Entries 2. Car Expense Record 3. Car information and Odometer Records 1. Logbook Entries It is a requirement that the logbook show details of each business trip including: the date the journey began and the date it ended the car's odometer readings at the start and end of the journey how many kilometres the car traveled on the journey the reason for the journey Example of a Log Book Start Date End Date Journey Reason Start odometer End odometer Total Trip km Business Private Minischool Private Weekend Weekend in town workshop at Dob Station TOTALS In this example it is noted that some trips have business and private kilometres, due to various reasons. Reasons: In the Mini school entry I had a day off and went to a nearby river for a social outing, the rest of the kilometres were business; round trip to town and taking children to school each day. In the Weekend in town entry my employers asked me to pick up stores and items at the school. I claimed the trip home as business because I had these items in the car.
7 7 2. Car Expense Record Once again it is required that receipt / Tax Invoices are obtained for car related expenses and these could be recorded in the logbook to make it easier to keep and add up. As a suggestion all tax invoices/receipts could be maintained with all other receipts once recorded on the chart. Car Expense cost Registration $400 Insurance $600 Tyres $220 Repairs $ Car Information and Odometer Records It is a requirement to maintain written odometer records for the period you owned or leased the car indicating the car's odometer readings at the start and end of the period. In addition details relating to the vehicle s make, model, engine capacity and registration number of the car will be required. Sample: Car Make Car Model Registration Number Vehicle No. (VIN) Holden Rodeo ghj456 Engine Capacity 2.8L Year 2001 Income Year 1 July 2007 to 30 June 2008 Odometer reading at the start of period Odometer reading at the end of period Private Kilometres Traveled % 674 Business Kilometres Traveled % 993 Total Kilometres Traveled 100% 1667 sad4a5s4d64sda46da With all the information above the TaxPack or the Etax online will then guide you through how to work our all car expenses and the percentage of use for business. Taxation Tax Offsets Tax offsets, similar to deductions, will reduce the amount of Tax that you pay. There are three (3) additional Tax offsets, which may apply to IHC carers. 1. Remote Zone 2. Medical Expenses 3. Entrepreneurs Tax Offset
8 8 1. Remote Zone Tax Offset The remote zone Tax Offset for living in a remote area. There is Zone A, B and Special Area. For more information about the areas of all states please go to Or phone Personal Info line Zone B Tax offset for NSW Special Area $57 $ 1173 Bourke Brewarrina Broken Hill Cobar Collarenebri Lightning Ridge Menindee Wilcannia White Cliffs 2. Medical Expenses Medical expenses are the expenses an individual has paid less any refunds received from Medicare or a private health insurer. An individual can claim a tax offset of 20% of your net medical expenses over $1,500. There is no upper limit on the amount claimed for items such as Chiropractor, dentist, spectacles, medications, band aids etc, 3. Entrepreneurs Tax Offset This is a new tax offset, which In Home Carers may apply because IHC are sole trader with an aggregated turnover of less than $75,000. The ETax program has great help guides and leads you through how to fill in the form for this. More Information Getting It Right: A tax guide for Family Day Carers available through Family Day Care Australia go to GOVIES page. Australian Tax Office website. Prepared Lee Anne Bright for Contact Inc on behalf of Children s Services Central Program for Isolated Children, Families and Communities