my income for 3/4 of the year is tax exempt, being in the form a scholarship living allowance.

I expect to have many more deductible expenses, than the amount of tax I will pay. Particularly since I will fall below the low income threshold.

  • Is there anything I can do with my deductions?
  • Can they be saved up for future years?
  • Can they be transferred to my spouse?
  • 1
    I don't know anything about Australia, but in the US we have two types of tax-reducing-things: Credits, and Deductions. The former reduce your tax directly, and sometimes can refund you money; the latter reduce your taxable income, but never refund you money, although sometimes they might carry over. If Australia has a difference between the two, you might get better answers by clarifying - and either way, clarify where your deductible expenses are coming from (which deduction(S)). – Joe Dec 2 '14 at 22:58

In Australia, you cannot carry over any unused deductions for following tax years, they are only allowed for the tax year they occur in.

You generally cannot transfer any deduction to your spouse unless she has incurred the expense in deriving her income.

If you have reduced you taxable income to below the Tax Free Threshold and still have deductions or tax credits (except for franking credits) left over you can not use these any more because your tax liability will already be zero.

The only tax credits that you can use once your taxable income reaches zero are franking credits from fully or partially franked dividend from any share holdings you may hold. If your taxable income is zero before any franking credits are applied, then you should be entitled to a tax refund to the value of the franking credits.

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