When tax time comes around it is often hard to think of all the deductions you may be eligible for. When doing your tax, you are entitled to claim deductions for some expenses, most of which are directly related to earning your income. A little in deductions can go a long way in adding up to reduce your overall tax bill. So here is an overview of deductions as accepted by the ATO:
- Vehicle and travel expenses
- Clothing, laundry and dry-cleaning expenses
- Gifts and donations
- Home office expenses
- Interest, dividend and other investment income deductions
- Self-education expenses
- Tools, equipment and other equipment
- Books, periodicals and digital information
- Cost of managing tax affairs
- Election expenses
- Income protection insurance
- Interest charged by the ATO
- Claiming mobile phone, internet and home phone expense
- Deductions for specific industries and occupations
- Overtime meals
- Personal super contributions
- Project pool deductions
- Seminars, conferences and education workshops
- UPP of a foreign pension or annuity
- Union fees and subscriptions to associations
Remember – to claim a work related deduction it must be:
Real – you must have spent the money yourself and not been reimbursed
Relevant – expenses must be related to your job; and
Recorded – you must have a record to prove you paid for it.
If you are unsure as to what deductions you may be eligible for, check on the ATO website www.ato.gov.au or talk to your accountant. A good accountant is your best friend when it comes to making the most of your income at tax time. We all love to receive a tax cheque and not a bill… So become prepared and happy deducting!
Recent Comments