Tax deductions for individuals - what you can claim this financial year!

As an Australian taxpayer, it is a legal requirement to lodge your annual tax return with the Australian Taxation Office (ATO) at the end of each financial year - 30th June. 
The ATO have warned taxpayers to not lodge until late July and early August. This is because information needs to be completed and pre-filled - information ranging from health statements to employer income statements. Waiting for this information to be pre-filled reduces the likelihood of mistakes and omissions, which can result in taxpayers having to submit an amendment possibly causing issues and delays. 

Understanding how deductions work
Deductions work by reducing your taxable income and thus lowering the amount of tax owing. Your taxable income is your total income made annually minus any allowable deductions.

Which work-related expenses can you claim:
If you spend money in the course of performing your job or running your business, some of those costs may be tax-deductible.
To claim a work-related deduction, the following must apply:

• You paid for the expense yourself and weren’t reimbursed.
• The expense is directly related to your income-earning activities.
• You have a record or receipt as evidence.

Common deductible work-related expenses include:

• Car, travel, and transport costs.
• Tools, equipment, and technology used for work.
• Work-related clothing and uniforms.
• Home office expenses.
• Training, education, and seminar fees.
• Union fees, memberships, accreditations, and licenses.
• Overtime meal costs.
• Certain health and medical-related expenses.

Other deductible expenses - non-work related
You may also be able to claim deductions for:

• Charitable donations and gifts.
• Expenses related to investment income.
• Personal superannuation contributions.
• Income protection insurance.
• Costs associated with managing your tax affairs.

How to claim your expenses
The ATO requires you keep receipts and documentations as proof for all claims - this means accurate record-keeping is essential. 
There are tools available to make this process easier. The office ATO app to track any deductions whether work-related or other, is myDeductions. These records can be uploaded directly when lodging your return via myTax, or shared with us if we are preparing your return as your registered tax agent. 

Need a helping hand?
Claiming all the deductions you're entitled to can significantly reduce your tax bill. Our team can guide you through setting up efficient record-keeping systems and ensure you claim the appropriate deductions - both work-related and personal.

Contact us today on (08) 9367 4199 to make sure you’re getting the most from your tax return.
Or checkout out checklists available that will help guide you through your individual tax return.