What deductions can you claim?
Updated: Jan 30
It is very important to know that you can claim some expenses as tax deductions
and reduce your taxable income. We know you work hard for your money, so make sure you claim everything that you are entitled to and get the best tax refund possible.
Here’s a list of common expenses that you may be entitled to claim.
1. Vehicle & Travel expenses
The ATO receives an excessive amount of car claims yearly as these costs quickly add up. However, do not get intimidated with this, as long as you drive for work—it is a good deduction. You are eligible for it if you are the owner of the car and your traveling is part of your working day like driving between offices or going to the bank. Note that you cannot claim trips between work and home.
2. Clothing & Laundry expenses
If you are required to use an occupation-specific clothing or work uniform,
you may be able to claim the money spent as well as the costs of its cleaning. If you have a clothing allowance from your employer, you need to show it as part of your income on your tax return.
3. Home office expenses
Computers, phones, and furniture at home used for work purposes may be claimable. You can claim actual costs if you have established and recorded a pattern of use. That said, it might get a little complicated so it’s best to speak with us at The Tax Accountant to help you get it right.
4. Self-education expenses
If you are to enrol in a course and your study is related to your job, you may be able to claim a deduction. The course must have sufficient connection with your current work activities as an employee.
5. Rental property expense
You can claim a deduction for your related expenses for the period when your property is available for rent or rented.
In general, you claim most expenses involving your work or business just make sure that they relate directly to your income and the expenses are all for work or business use. You also must make sure that you have records to back up your claim.
Lastly, make sure to check your individual situation with us, as the specifics change from one person to another.
If you are looking for a tax accountant to help you with your financial affairs, please contact us and our Tax Accountant can assist you.