According to a recent study nearly two-thirds of Australians aged 18-24 aren’t getting their fair share of tax back at the end of each financial year It isn’t just the young ones not getting the highest return possible either. The main reason? They don’t know what expenses are tax deductible. We’ve put together a list for you with resources that will get you up to speed in time for lodging your tax this year.
Do you drive a lot for work? You can claim vehicle expenses that are directly related to travel for work.
If you work two jobs you can claim the expenses you spend on travel between the two. If you travel from client to client in your day this is also claimable as a work travel expense.
Clothing that is required for your job and is position-specific such as a company shirt or uniform can be claimed on tax. Work related clothing that isn’t industry specific cannot be claimed however. A general rule of thumb: if you could wear what you wear to work on the street and not be recognised, you probably can’t claim it.
Protective clothing can be claimed back in a tax return. Items like protective boots, hi-vis vests and safety goggles can all be claimed.
A lot of people don’t know that they can claim the laundering cost of their work clothes. If you’re washing only work related clothes, you can claim $1 per load.
Donated to a charity in the last financial year? Chances are you can claim it.
To be claimable the minimum donation amount must be over $2 and meet the following criteria:
- Made to a deductible gift recipient (DGR)
- Be an actual gift where the giver receives no benefit or advantage
- Comply with the relevant gift conditions for that DGR
- Be a gift of money (or other financial asset) or property
With more and more people working from home, it makes sense that the government have allowed home office items to be claimed.
Items like computers, phones, tablets that you use to conduct work on can be claimed too. As well as the material possessions you work on, you can claim running costs like heating, lighting, furniture repairs and cleaning.
You are entitled to claim deductions where expenses are incurred when earning interest or other investment income.
In conjunction with this, you can claim the expenses listed above if they were related to managing your investments.
If you undertake a course of study that improves your skills or knowledge relating to your current employment that will likely improve your income, you can claim the expenses relating to that course.
Any tools or equipment that assist you in earning income can be claimed as a deduction. Cost of the asset does impact the amount you can claim.
Under $300 – Immediate deduction for their cost
Over $300 – Claim a deduction for their decline in value
Tools and equipment include any item that helps you get your job done. This can include furniture, technology, protective gear or work tools.
As another general rule, if you have to spend money to earn money, you can claim it. Make sure to keep records of all work-related expenditures so that when you are putting together your tax return you get the maximum return possible so you are left in a better financial position.