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Tax tips: The top 5 tax deductions you can claim

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    Many expenses that you accrue as a result of your profession might be written off on your tax return. Many people are unable to, and the ATO may fine you for falsely claiming these.

    Utilising the deductions you are eligible for is one of the simplest ways to increase your tax refund. If you work from home, you may be able to deduct some or all of the costs associated with office equipment and telephone bills.

    If you run a business out of your house, you can deduct a portion of the costs associated with your occupancy, such as your rent, mortgage, and homeowners insurance premiums.

    Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing

    1: Claim as many costs associated with your job as you can

    On your tax return, you may be able to deduct a significant portion of the costs that you have incurred as a direct result of the career path that you have chosen. While many people are unable to, you may be subject to a fine from the ATO if you falsely claim that you are eligible for them.

    Some of these are more obvious than others, such the tools that an apprentice uses or the fees associated with travelling (as explained above). However, were you aware that it's possible for journalists to deduct the costs of their pay-TV subscriptions? These can be deducted as long as they are connected to the individual's contribution to the company (for instance, a sports writer who needs access to the sports channels).

    It's possible that you'll be able to take deductions for a wide variety of expenses related to your firm.

    The following are some examples of things for which you might meet the requirements:

    • Tools and attire appropriate for the job. The item is necessary for you to do your jobs, such as tools that tradespeople use, hairdressers' equipment, or specialised footwear like steel-toed boots.
    • Safety equipment Items essential for self-defence or safety while performing your profession, such as eyewear and sunscreen if working outside is required.
    • If you use these for work, you can deduct them from your taxes. If you use a computer for both work and personal use, you can only deduct what you use for work.
    • Conferences and classes. Self-education costs, such as classes and certificates, must be clearly relevant to your line of work and aid in your advancement or wage increase.

    2. Make use of tax deductions when working from home

    Whether you work from home full-time, part-time, or even just occasionally, you are eligible to claim this as a tax deduction in all of those scenarios. For instance, if you run a home-based business (either full- or part-time) that requires the use of computers, phones, and various other electronic equipment, you may be eligible to deduct some of the associated costs from your taxable income.

    The cost of your household's internet and power bills were accounted for as well in this estimate.

    Work done from home may qualify for a number of tax breaks, including the following:

    • Cleanup fees. the costs associated with maintaining a home office.
    • Office equipment costs are associated with purchasing and maintaining office equipment necessary to perform your work.
    • The telephone bill. Calls made on landlines and mobile devices about work-related issues (you should get an itemised phone bill and highlight the work-related calls)
    • Your internet bill at home. Depending on how frequently you use the internet for business, you may be able to claim a portion of your monthly internet fee.
    • Bills for electricity. Depending on how frequently you work from home, you can also deduct a portion of your electricity costs.

    Amazingly, if you run your business exclusively out of your home and have a space designated for commercial activity, you can also deduct a percentage of your occupancy expenses, such as rent, mortgage, and home insurance.

    To avoid an ATO fine, make sure your work from home costs are properly reported. You'll need to provide supporting documentation and calculations to support the amount you're claiming. This can be done for you by a tax agent to make sure your claims are legitimate.

    3. Use a tax advisor—they'll assist you maximise your return, plus their cost is deducted from your taxes!

    Using a tax agent to file your tax return is frequently the simplest approach to make sure you're deducting everything you're entitled to. Here is how tax professionals may assist you throughout tax season:

    • Make a tax deduction for the cost of the tax advisor. You might be surprised to hear that utilising a tax professional has no additional expense that is not tax deductible.
    • Obtain extra tax breaks. Tax professionals are familiar with the ins and outs of the tax code, so they can assist you in making all of the claims to which you are entitled, including some to which you may not be aware.
    • Make a true claim. The ATO may impose a fine on you if your deduction claims are incorrect. In order to provide you peace of mind after submitting your return, tax agents will assist in ensuring that you have accurately claimed everything.
    • Assistance with calculations It can be challenging and time-consuming to claim expenditures for things like car use and home offices. In order to determine how much you can claim, you'll frequently need to keep a log book or provide proof of your job. It can save you a tonne of time and frustration because tax agents are experts at this.
    • Give tax advice. Tax professionals can also provide you with further tax advice as well as general financial management advice.

    4. Vehicle and travel costs

    It would indicate that the vast majority of customers are confident in their ability to deduct expenses related to their cars and travel from their taxable income. However, if you make an informed guess as to the overall amount of expenses incurred, you can be in trouble for making a false claim about something like travelling to and from work.

    It's crucial to confirm if the ATO will recognise your claim as a travel expense for this reason.

    It is essential to do this right because, if you deduct these charges in the appropriate manner, you will be able to save a significant amount of money when it comes time to file your taxes.

    The following are examples of travel and vehicle expenses that may be tax deductible if you use your automobile for business:

    • Your car will lose value over time
    • The price of registering your vehicle
    • The cost of your car's insurance
    • The price of running your car, including gas, oil, and maintenance

    The following expenses related to vehicles and travel are not deductible:

    • Your car's initial purchasing price
    • Tickets for parking and other fines for speeding

    If any of the following apply to you, you may be entitled to claim your vehicle and travel expenses:

    • The expense of travelling between two different places of employment
    • The price of getting from your place of business to other places, including customer meetings or project work sites
    • If you must transport bulky equipment for work, such as a ladder or tools, and you are unable to leave it at the office

    The following circumstances preclude you from deducting travel or car expenses:

    • Direct travel to and from work is preferable because it is typically considered a private trip.
    • If you have to travel to work because you don't live close to a transportation hub

    5. Don't forget to give to charities

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    Before you are allowed to claim a gift or donation, there are only a few items that need to be validated. One of the most common tax deductions that individuals either do not claim at all or claim incorrectly is the child care credit. If all you did was drop some spare change into a bucket at the counter of a convenience store, it is quite unlikely that you will be able to claim this as a tax deduction.

    On the other hand, if you are one of the numerous individuals who makes consistent donations to a charity on a monthly basis, you can be eligible for a tax deduction.

    If your contribution meets the requirements that are outlined in the following paragraphs, you should be able to take a tax deduction for it:

    • Are they a DGR (Deductible Gift Recipient) organisation?
    • Is the gift truly a gift and not something you receive in exchange for a material gain or benefit?
    • Do you have a bank statement or a receipt that verifies these payments were made?
    • Clothing donations are not eligible for tax deductions as charitable contributions; instead, donations must be made in cash or another form of financial asset.
    • The donation must be at least $2.

    The Australian Tax Office (ATO) does not recognise the following contributions as gifts or donations.

    • Tickets for a raffle or an art union
    • Items like pencils and chocolates
    • Attending fundraisers is expensive
    • Initiation costs
    • Instead of raising tuition, payments could be made to school building funds.
      Payments that could result in a meaningful benefit for the donor, such as raffle tickets with a chance of winning,

    Bonus advice: This is how to properly claim work clothing

    It is of the utmost importance to get this right because the ATO has recently begun cracking down on persons who make false claims regarding their work clothing. The kind of apparel you have to wear must be required by your profession, and it must be specified in advance.

    It's a common misconception that anyone may deduct their laundry expenses from their taxes, but that's not always the case. Make sure that the article of clothing you wish to deduct from your taxes meets all of the following standards before you file your return:

    • It must bear a logo or be listed on AusIndustry's register.
    • That item must be required to be worn according to a strict policy that is enforced. For instance, claiming a deduction for the requirement to wear black is not explicit enough.
    • It cannot be worn for personal use or outside of work; it must only be used for business-related tasks.
    • For your protection at work, you must don the clothing (e.g. safety glasses)
    • The attire is tailored to the job (e.g. chefs' black-and-white chequered pants)

    As with all other deductions, confirming your eligibility with your tax advisor before claiming anything to prevent an ATO fine is best.

    Check out this guide if you're seeking for a more detailed list of tax deductions.

    How to Maximise Your Tax Refund in Australia

    With over $3,600 being the average refund size last year and 84 percent of taxpayers anticipating a refund, it pays to take your time to double-check your return's accuracy.

    Here are our top suggestions for making the most of your refund this year and receiving it as soon as possible:

    Be Organised And Claim What You’re Entitled To

    Prepare all of your paperwork with care, including paystubs, bank statements, logbook entries, and receipts for business-related expenses.

    Maintaining a spreadsheet outlining your expenses makes working out your spending more doable, whether you're using a tax agent or doing it yourself. Download the Tax Checklist to remain up to date on the information you need to gather to ace your return in order to ensure accuracy from the outset.

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    Claim it if you have the documentation to verify that you spent money on something as part of your job.

    Typical deductions that many taxpayers take advantage of are:

    • Costs associated with driving to and from work in your car for work purposes are not included here.
    • Travel expenses for job. Those expenses are frequently deductible if you must travel for work and spend money on meals and lodging.
    • Tools and other equipment costs. Items that cost $300 or less are instantly deductible. Items that cost more than $300 can be deducted over a number of years. Tools for a tradesperson, a laptop for an office worker, or even a handbag or briefcase used to carry work papers are examples of things you could claim.

    Additionally, the ATO is fine with unedited scanned versions, so don't worry about maintaining disorganised stacks of paper receipts. Just keep in mind to maintain your receipts and tickets for the entire five years as required by the ATO.

    Make Sure You Provide Accurate Information

    Only the amount you spent may be claimed. Therefore, don't overstate deductions to increase your refund and only claim expenses you can support with an invoice, receipt, or bank statement.

    Make careful to accurately record all of your income, including gains from investment property, any overseas income, and profits from bitcoin trading. Be cautious when providing information because the ATO can verify it using a wide variety of data sources.

    You can ask the government, banks, and other financial entities for clarification of your claims. The ATO will doubt your tax return if the sums don't add up.

    Don’t Rely On Pre-filled Data From The ATO

    Many of the details about your income can be pre-filled directly from the ATO's systems. But don't assume that this income information is accurate or comprehensive. Early filers who utilise the ATO's myTax system frequently discover significant data missing from their pre-fill since many third parties, like as banks, don't provide the ATO with information about you until late July or early August.

    Even though you used data directly from the ATO's computers, the legal burden is on you if you remove income and the ATO questions you.

    Most tax accountants will work from their source documents rather than pre-filled data. This reduces the likelihood that income data will be missing for those who wish to lodge early.

    File Online

    We need services that accommodate us because most of us try to fit into our 9–5 jobs. Because life can get even more hectic around tax time, we are open after hours so you can file your taxes online or in person at any of our 470 locations.

    Use our Online Tax Adviser to connect with a professional online and file your return as soon as possible. Once you have carefully examined all of your pertinent information and tax documents, upload it. An online tax advisor will then get in touch with you to begin preparing your return to maximise your refund.

    Our expert will keep in touch with you through our safe and secure online platform while they work so you can stay informed about the status of your return. Or, if you feel a little more at ease behind the wheel, you can use our self-service Online Tax Express Return and submit it whenever you want, wherever you are.

    Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing

    Get Expert Help

    If you file your tax return incorrectly, you could face penalties from the ATO or a smaller refund. The majority of people (74 percent of all Australians) believe it to be far less stressful to let an agent handle their return. This guarantees the return will be precise and thorough, and a seasoned agent is typically adept at uncovering esoteric tax deductions you weren't aware you might claim.

    Additionally, we take great care to ensure that our paperwork is in top condition because of our maximum guaranteed refund. In the extremely unlikely event that you find out you are entitled to a different refund amount, we will reimburse your preparation cost and file an amendment with the ATO. After you've filed, log in online to check on the status of your return; being able to do so from anywhere makes tax season less stressful.

    The tax agent's fee is also deductible, which is the best part.

    Don't Overlook the 5 Most Common Tax Deductions
    1. Retirement Contributions. ...
    2. Charitable Donations. ...
    3. Mortgage Interest Deduction. ...
    4. Interest on College Education Costs. ...
    5. Self-Employment Expenses.
    A deductible for taxes is an expense that a taxpayer or business can subtract from adjusted gross income, which reduces their income, thereby reducing the overall tax they need to pay.
    Common itemized deductions include interest on a mortgage loan, unreimbursed healthcare costs, charitable contributions, and state and local taxes.
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