Everyone that pays tax will understand the bitter sweet sting of a tax refund. Our team here at Online Tax Return have put together a list of deductions you can claim to maximise your tax refund and ease the sting.
Paying your own super contributions means that you can claim the full cost of your superannuation. You can claim tax deduction when you pay contribution to your superannuation if you pay it from your pocket (after tax money). You will need to send a Notice of intent to claim a deduction form to your superannuation fund and to receive an acknowledgment from them before you lodge your tax return.
2. Home Office or Home Study
If you are a taxpayer who operates a business from home and has a designated home office, you can deduct the business percentage of the following expenses:
-mortgage interest or rent
-rates and taxes
-Depreciation of furniture and fitting in that office
-electricity and heating/cooling costs.
Note that it is only the business percentages of those costs that you can claim, so don’t go claiming your heating expenses for while you’re binge watching your favourite show on Netflix!
Those of you who incur expenditure in relation to self-education which relates to the earning of assessible income can deduct that expenditure. Such expenditure includes items as textbooks, fees, and travel expense. It should be noted that Australian tax law grant that the first $250 of “self-education” expense is not deductible.
This deduction is perfect for those of you who are all about giving. NOW would be the best time to donate to your favorite charity for this financial year. A donation to any registered charity or organization is deductible if the amount donated is over $2. This may be in the form of money or property. Note that to be deductible the donation must be a gift, therefore nothing received in return, e.g. no raffle ticket. That’s what charity is all about after all.
5. Work Uniforms
We all know what it’s like to have to wear a uniform. Whether you love it because it means you get that extra little sleep in, since you no longer have to decide what to wear, or you hate it because you no longer get to express yourself through your outfit, a lot of the time they are compulsory. To be compulsory uniform there must be a requirement to wear the uniform in an approved combination and sanctions must apply if the uniform is not worn (e.g. JetStar flight attendants cannot fly if they do not wear their uniform in the approved condition)
Compulsory uniforms are deductible.
Deductible clothing Includes:
Clothing which is protective (i.e. it protects a person from injury or protects conventional clothing is deductible.
Clothing which is embossed with the employer’s name and which meets other requirements to be registered as a non-compulsory uniform is deductible.
Clothing which is occupation-specific like hi-visible shirts or checked chef pants
6. Income Protection
You can claim Income Protection insurance as deduction. Unlike other insurance such as, hospital cover or life insurance, premium paid for the income protection is deductible.
7. Vehicle Expenses
Car expenses are the most common deductions, but you must be very clear on what counts as a vehicle expense. The ATO has cracked down on ineligible car expenses over the past years and are continuing to do so.
If you are claiming a deduction for using your own car, it must be for work purposes. This does not include transport to and from work.
You can claim for using someone else’s vehicle for work purposes but only the direct costs, such as fuel.
If the travel was partly private you can only claim for the work-related portion.
If you are still unsure on what you can and cannot claim or would require any further clarification our team are here to help! Give us a call or fill out our online enquiry form to get expert opinions from our friendly accountants.