It’s almost that time of year again where you need to start thinking about lodging your annual tax return. From work related expenses to investment income expenses, we’ll help get those tax deductions working for you.
Lets look at 9 ways you can reduce your overall taxable income.
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Working From Home Expenses
Covid has changed the way many of us work, with thousands of us now working from home as part of our employment commitments. The good news is, that a portion of your home expenses can be claimed as valid tax deductions. If you have a separate home office, you can claim your phone, computer, electrical devices, and stationery and general office equipment.
Unfortunately, if you work from your dining room table or kitchen bench, the tax office will only allow you to claim expenses for the hours worked. For more detailed information on what you can or can’t claim in a ‘work from home’ scenario, speak to Tax Trilogy today.
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Investment, Shares & Dividend Income Expenses
If you own an investment property, tax deductions can most certainly be claimed for expenses such as interest payments on a loan, utilities, body corporate fees, council fees, maintenance and repairs.
In the case of shares, dividends and other income generating assets, you could be eligible to get some money back relating to management fees, interest paid on capital protected borrowings, company publications and travel related expenses.
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Car & Travel Expenses
Keeping track of your car and travel expenses will put you in good stead come tax time. If you use your vehicle for work related purposes (this doesn’t include driving to and from work), you are entitled to claim a portion of this if you can prove the costs are directly related to your job.
Alternatively, if claiming car expenses using the logbook method, you’ll need to record your trips for 12 consecutive weeks (3 months) – as this will provide the tax office with a good indication of your driving history for work. You must also own the car to be entitled to getting a portion of your money back.
Do a lot of interstate travel? Plane flights, transport and accommodation are some of the items that can also be claimed throughout the course of the year.
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Uniform, Clothing & Laundry Expenses
If wearing a uniform is a compulsory part of your job description, you can most definitely claim this with the taxman at years end. Laundry expenses can also be claimed but remember it must be work related and not for personal purposes. Just make sure you hold on to those receipts come tax time.
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Professional Industry Expenses
If you’re an office worker, manager, supervisor or other business professional, you may be able to get a portion of your money back for plane flights, networking events, taxi and uber fares, public transport costs, road tolls, hire car expenses and office equipment. Of course, your accountant will advise you on what you can or cannot claim for your specific industry; and whether it falls within the ATO tax deduction allowance.
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Gifts & Charity Donations
According to the ATO, you can only claim a tax deduction for gifts or donations to organisations that have the status of deductible gift recipients (DGR’s). Also, the person that makes the gift (the donor) is the person that can claim a deduction. As a general rule, gifts and charity donations generally fall within the ‘Other Deductions’ category and can be claimed as a tax deduction, even if it doesn’t relate specifically to your work.
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Education & Course Expenses
Whether you plan do a short one-day course or commence a formal qualification, you must be able to prove the study is linked to your existing employment. Course fees, computer equipment, stationery, accommodation and meal expenses (if studying away from home) are some of the things you can claim. Chat to our specialist tax consultants at Tax Trilogy for a more concise breakdown of your potential deductions.
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Other Work Related Expenses
If you have other work related expenses that don’t fall under the main tax deduction categories, you can still claim certain tax deductions come end of financial year including tools, equipment, phone, data and Internet, COVID-19 test expenses, union fees, subscriptions, agent fees and working from home expenses.
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Tools & Equipment
Do you work in the building and construction industry? You can claim deductions for a portion of the cost of tools and equipment such as spanners, hammers, grinders, sanders etc. If you’re a business owner, you can receive tax benefits on items such as calculators, desks, chairs, lamps, filing cabinets, safety equipment and bookshelves.
Items that cost less than $300 can be claimed as an immediate deduction, anything over $300 can be claimed as a deduction in accordance to it’s decline in value. Repairs and insurance costs may also be claimed but for further clarification it’s best to speak to your accountant.
Tax Trilogy can help you achieve maximum returns come tax time.
For an obligation free chat, please call us on (07) 5499 9973 or visit our office at 15 Bunya St, Maleny, Qld.