With complicated, ever changing legislation, you can be sure that by engaging an accountant to assist in preparing your income tax return, we keep up to date with all of the changes to maximise your return, and even better – it is tax deductible.
Are you making the most of allowable tax deductions?
Individuals can claim for general work-related expenses as well as occupation-specific expenses and working from home.
Although a lot of information is now available on the ATO prefilling report, you may not be maximising your deductions.
If you have a rental property, have earned income through shares or crypto currency trading or have bought and sold assets you may need advice on the capital gains implications and how to calculate your gain or loss. Any losses made from trading can get carried forward to future years and offset against any future gain so it is important that you get it right.
As an individual here is a guide to expenses that you may be able to claim:
- Vehicle and travel expenses – use a travel diary to record details of trips taken for your employment.
- Clothing, laundry and dry-cleaning expenses – you can claim for occupation specific clothing, uniforms and protective gear.
- Home office expenses – there are special rules this year for employees working from home because of COVID-19. You will need records of the hours you have worked from home to claim the ATO special rate.
- Self-education expenses – some education expenses that relate to your current employment are claimable.
- Tools and equipment – if you buy gear to help you in your job, this may be claimable. Small tools of trade, protective items, professional references and laptops are some examples of equipment you may be able to claim.
Occupation and Industry Specific Guidelines
The ATO recognises that some occupations and industries have specific requirements that employees need to pay for.
There are handy ATO fact sheets for many industries, including hairdressers, teachers, performing artists, hospitality workers, lawyers, medical professionals and more.
These guides are a great starting point if you are not sure what you can claim, but we can give you information tailored to your situation when you do your tax return with us.
Superannuation
If you have made personal superannuation contributions separate to your employer’s superannuation guarantee contributions, you may be able to claim this as a tax deduction. You will need to provide a notice of intent to claim form to your super fund and receive acknowledgement from the fund before doing your tax return.
Book a time with us now to prepare for your tax return and we’ll make sure you make the most of all applicable tax deductions this year.
