Are you filing for a tax return this year? Are you making sure that you are claiming deductions for any work expenses?
As a responsible working citizen of Australia, you have to ensure that your tax is completed accurately and in accordance to the guidelines of the ATO (Australian Taxation Office).
But sometimes, due to an upcoming deadline or a hectic schedule, you may rush filing your tax. This can make it easy to try to overlook some deductions that you can claim for, like work travel expenses and charity gifts. As a result, you may get less on your tax return.
So, to help you not to miss any common tax deductions, we have put together this handy list for you. You can go through each item and make a note so that you don’t forget what you need to claim.
Common tax deductions that you may overlook:
- Union fees
If you are part of a union and pay annual union fees or subscriptions to industry-related associations, then you are entitled to claim back what you have spent. It comes under the work-related category and it’s acceptable to file for. For more clarification, you can consult your tax advisor or the ATO.
- Donations
Did you make donations or give gifts to your favorite charity organizations? Whether you donated money (any amount more than $2) or any material assets, like properties or shares, you can include them in your tax deductions, provided you have a receipt. However, you can only make this claim if the charity is recognized by the ATO as a deductible gift recipient.
But remember, you cannot claim for any donations that gave you a material benefit or advantage. This includes fundraising dinners, for example. You should consider only those charitable donations and gifts that you have voluntarily given without receiving anything in return.
- Work-related car and travel expenses
If you haven’t already been reimbursed for work-related travel expenses, you can include them as one of your tax deductions. They need to meet the following requirements though:
- You spent your own money in a way that’s directly related to your income
- You have documents to prove your journey details
Moreover, many business owners use a car for commuting between home and work. They may also use their vehicle to travel elsewhere for work purposes. In such cases, you can claim this as a deduction, provided you are traveling in business hours.
- Tools and equipment
All the tools and equipment that you buy for your work, like calculators, computers, desks, chairs, lamps, hand tools and safety equipment, can be claimed back. Whether you buy a new item or repair an existing item, it can be claimed as a tax deduction. Even if you borrowed money to buy or repair a work-related item, you can claim it.
However, if you are using the items for personal use as well, you will need to provide clear records of when it was just for work. You can a diary that shows when you use the equipment for work and when you used it for personal use.
- Rental property expenses
Do you know that you can claim for rental property expenses like gardening, lawn mowing, pest control, and security patrol, secretarial, and bookkeeping fees? These items are often overlooked by many landlords when completing their tax.
You can also claim car or travel expenses when you go to collect rent money, inspect a rental property and check maintenance issues.
- Education expenses
If you are completing further education for your work, you can claim back what you have spent on union fees, textbooks, computer expenses, stationery, accommodation, meals, student services and travel expenses. You can even claim for expenses you incur when self-educating for work.
- Home office expenses
With many employees now working from home due to quarantine restrictions, many people are eligible to make claims for home office expenses. This can include deductions for computers, lighting, furniture, phones and any other work-related tools. You can also claim for electricity and Internet.
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However, ensure that you are only claiming for expenses you have used in work hours. For instance, you may only be able to claim a portion of your Internet bill as it was not entirely used for work purposes.
Hopefully, you now have an idea of what deductions you can include in your next tax filing. Claim back as much as you possibly can.
