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Tax Time Can Be Rewarding

Really… We aren’t joking.

With the new financial year now under way it is time to start thinking about and tracking down the paperwork for any work related expenses that you incurred in the previous year. The reason being that they may be able to be claimed as a tax deduction and reduce your taxable income. This means more money for you and less for the tax man. See we told you tax time can be rewarding!

Expenses are claimable when:

  • The money spent was a work-related expense
  • The money you spent was not reimbursed by your employer
  • You have a record of the expenses, such as a receipt or bank statement
  • Costs that have a mixed personal and work component can be apportioned (like your home internet)

So what exactly can you claim?

1) VEHICLE AND TRAVEL EXPENSES

There are specific conditions set down by the Australian Taxation Office (and no, you cannot claim your trips to and from work). The rules here aren’t exactly straight forward so read more about it here or ask us!

2) CLOTHING, LAUNDRY AND DRY-CLEANING

Amounts spent on occupation-specific clothing, protective clothing or work uniforms can be claimed, along with the cost of cleaning these clothes

3) GIFTS AND DONATIONS

Any amount donated above $2 can be claimed back if donated to an organisation that provides you with a ‘deductible gift receipt’. Other than money, gifts could also be property or shares

4) HOME OFFICE EXPENSES

Work from home? You can claim tools and equipment (like computers, furniture and phones) used for work purposes along with the cost of running your home office. This includes heating, lighting and cleaning. Just make sure that only the work portion is claimed.

5) INVESTMENT INCOME DEDUCTIONS

If you incurred a cost to produce income such as account-keeping fees or interest charged on money borrowed for a rental property, then this can also be claimed

6) EDUCATING YOURSELF

Provided that the education you undertake is work-related, the costs involved with this can be claimed against your income

7) AND DON’T FORGET…

Plenty of other things that can be claimed such as books, costs of managing your tax affairs, union fees, personal super contributions, income protection insurance and interest charged by the ATO

Published on July 3, 2018 by Progue

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