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The Top Tax Deductions You Can Claim

Tax time is nearing so it is important to know what deductions you are able to claim in order to maximise your tax result. Tax deductions and paying of tax are both critical factors of a country’s economy. Today, in this post, accountants camperdown will explain top tax deductions you can claim. Before we detail what expenses are deductible, the Australian Taxation Office states that the expenses must have been paid using your own money (not reimbursed), the expenses are directly related to your job and you have to have proof of purchase.

Self-Education Expenses

If you have undertaken any courses or attended any seminars, you may be able to claim this back during tax time.

Self-education expenses may only be clamed it the course and your work at this time are immediately linked. As the ATO states, all of these four requirements should be met.

You should be:

1) Keep your current work capabilities.

2) Improve your skills or data in your current work.

3) A student and the course in which you take part.

4) You might demonstrate, or possibly would, an increase in your present salary in the course you were taking.

Tax deduction for tax agent fees

The cost of your previous years tax return fees are tax deductible. Seeing a tax agent can be helpful as they can provide you with more knowledge and insight into what can be claimed back during tax time. It also saves a lot of time and stress.

Car expenses 

Costs relating to using a vehicle can only be deducted under certain circumstances. Car expenses can only be deducted if it is used to carry out your work. For example if you are using it for travel in between work sites then you can claim it back, just make sure you make a record of the distance each time. Expenses relating to getting to and from work from your home are not tax deductible and you will havse to pay that out of your own pocket. The extent of your allowance varies according to the number of miles you have spent traveling on each of these expenses.

Union membership fees 

If you have a union membership fee, you will be able to claim this in your tax return. Not only will you be able to see the benefits of being in a union but it is also tax deductible. If you have a subscription to a professional association, you may also be able to claim this.

Home office expenses

Due to COVID-19, the Australian Government has introduced a shortcut method for people who want to claim working from home expenses. There are several methods that can be used to calculate this and by going to a tax agent, they will be able to figure out which method works best for you. Home office expenses include costs that you have incurred while working at home. This includes internet costs, lighting, heating, electricity and many more.

Mobile Phone and internet costs

Your PC, telephone, internet, and surprisingly some cool tech gadgets can be claimed back during tax time if they are needed for your job. When claiming these expenses, you must separate your personal and work usage as only the work portion will be deducted.

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