Tax time is just around the corner and whether you’re submitting your tax return yourself or going through an accountant, it’s important to be aware of the deductions you might be eligible for. Missing one could mean missing out on thousands of dollars worth of deductions so it pays to know your stuff!
Deductions vary depending on the nature of your work but there is a common list that applies to most people:
Motor Vehicle and Travel
You can claim vehicle and travel expenses but only if they are directly connected to your work. This includes a proportion of any repair and upkeep costs as well as an amount per kilometre you drive for work purposes. Regular to and from work travel can’t be claimed but any work-related driving you do outside of that counts.
Click here to read the ATO’s guidelines on motor vehicle and travel related deductions.
Clothing, laundry and dry-cleaning
Keep track of any expenses related to clothing you are required to wear for work. This deduction applies to things like uniforms or protective gear only – not general office wear.
Click here to read the ATO’s guidelines on clothing related deductions.
Whether you work from home regularly or occasionally, chances are you’re probably eligible to claim a small amount of expenses relating to your home office. This can include rent, electricity and internet along with cleaning and general upkeep. As usual, the amount you can claim varies depending on your situation so it’s best to consult with a qualified accountant.
Click here to read the ATO’s guidelines on home office deductions.
If you’ve stocked up on computer and tech equipment this financial year it’s pretty likely you can claim the costs as a deduction. If haven’t bought anything new, it is often possible to claim depreciation on any tech assets you own so again, it’s worth asking your accountant about this.
Click here to read the ATO’s guidelines on computer and other ‘work tool’ related deductions.
Printing, Stationary, Books and Magazines
Keep track of your printing and newsagent related expenses because you may be surprised to learn how much of them are tax deductible when it comes to tax time. A great way to stay on top of small expenses like this is by using a handy app called Expensify which allows you to take photos of receipts as you go.
Click here to read the ATO’s guidelines on stationary related expenses.
Gifts and Donations
Apart from the good karma and feel good vibes that come with giving to charity, the donation amount is also often tax deductible provided you have donated to a charity that has ‘Deductible Gift Recipient’ (DGR) status. If there’s a number of different causes that you’re thinking of donating to then it’s worth checking which ones have DGR as it can make a big difference come tax time!
Click here to read the ATO’s guidelines on deductions relating to gifts and donations.
Need some help with getting you tax sorted? Come and see us for a free chat. Plus, if you refer a mate we’ll take 20% off the cost of your tax return for both of you.
Want to learn more about tax? Rising Tide’s Senior Financial Planner Matt Hale shares his top tax time tips.