One of the best ways to bring your taxable income down (hopefully into a lower personal tax bracket) is by being aware of all the deductions you can claim. It may even reward you with a larger tax return.
Here are just a few simple ways you might be able to claim personal tax deductions on your income.
Here are just a few simple ways you might be able to claim personal tax deductions on your income.
Donations to charity
Charity donations are a great item to claim, and they can really add up over the year. To claim, the donation or gift must meet the following guidelines:
Charity donations are a great item to claim, and they can really add up over the year. To claim, the donation or gift must meet the following guidelines:
- The organisation has Deductible Gift Recipient status
- The gift or donation provides no material benefit to yourself (i.e. you do not receive anything in return)
- The gift is over $2
- You have a written receipt for the donation
- The donation must come in the form of either money or a financial asset
Travel expenses
Travel expenses — particularly vehicle costs — are another great way to claim a deduction, providing that you’ve used your vehicle for eligible, tax-deductible purposes.
Claimable vehicle expenses may include:
Travel expenses — particularly vehicle costs — are another great way to claim a deduction, providing that you’ve used your vehicle for eligible, tax-deductible purposes.
Claimable vehicle expenses may include:
- Depreciation on your vehicle
- Registration costs
- Insurance costs
- The running and maintenance of your vehicle (such as fuel and servicing)
- Travel from one workplace to the next
- Travel to other work-related sites (such as clients’ premises)
To make vehicle travel claims, either a logbook must be kept for twelve weeks detailing dates, times, odometer readings and destinations; or you can claim 68 cents per kilometre for a maximum of 5,000kms per vehicle per year.
Work-related expenses
General work-related items that may be claimed can run into the thousands, so long as they meet one or more of the following criteria:
Work-related expenses
General work-related items that may be claimed can run into the thousands, so long as they meet one or more of the following criteria:
- The item is essential for work purposes (such as a tradesperson’s tools)
- The item is required for health and safety reasons (such as sunscreen if working outside, or safety goggles)
- The item is for training or education purposes (such as a course)
Running your business from home
Not only does working from home have the advantage of being able to work in your pyjamas, but there are a myriad of ways you can claim expenses, regardless of whether you’re working full-time or part-time. These include:
Not only does working from home have the advantage of being able to work in your pyjamas, but there are a myriad of ways you can claim expenses, regardless of whether you’re working full-time or part-time. These include:
- Furniture and appliances (such as computers, desks, chairs and mobile phones)
- Phone calls from either a landline or mobile phone
- A portion of your monthly internet bill, as well as utilities (e.g. gas and electricity)
Work clothing
If you’re required to wear a specific uniform or article of clothing, you may be entitled to claim it. However, this is only if:
If you’re required to wear a specific uniform or article of clothing, you may be entitled to claim it. However, this is only if:
- It is work-specific and compulsory to wear (such as high-vis)
- It has a logo or is registered with AusIndustry
- It is only worn for work-purposes, during work times
- It is required for health and safety reasons (such as a hard hat)
- It is specific to an occupation (such as a nurse’s uniform)
To find out more about our personal tax packages, or for more advice on what you can claim at tax time, contact one of the team at AR Advisors today.
Infographic Source: Maximising Your Tax Return: 5 Deductions You Need To Know About
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