12 July 2017
Our Top 5 Tax Deductions
Tax time is officially upon us. Yes, we understand it is a time consuming
process to collate all your documents, add up all your receipts, find time
to book and attend your appointment. BUT did you know that you could
claim back hundreds, or even thousands, of dollars each year simply by
investing more time into your tax return? Here, we highlight our top 5
claimable deductions which could result in a substantially better tax
refund (and perhaps fund that overseas trip you have been dreaming of!).
1. Motor Vehicle Expenses
Do you use your car to visit clients, attend other work sites or collect supplies? If so, you can claim Motor Vehicle expenses using either the Cents per Kilometre method or the Logbook method. If you haven’t done a logbook, don’t worry; we will help you estimate your claim. If you have done a logbook, that’s fantastic! Bring it to your appointment, along with your fuel receipts, vehicle insurance, vehicle services and repairs, registration and purchase finance documents (preferably each item already totalled so we can use our time together efficiently).
2. Mobile Phone Expenses
Do you use your mobile phone for work purposes? If so, bring a representative monthly itemised bill, circling the work-related calls and texts and we will work out the work-related portion of your bills that you can claim. If you don’t receive itemised bills, you can do a consecutive 4-week diary noting all your personal and work-related calls and texts instead. Only use your mobile phone every now and then for work? Then did you know we can claim up to $50 ‘incidental use’ of your mobile phone without any receipts?
3. Uniforms and Laundering
Are you required to wear a uniform for work? If so, then don’t forget to claim the costs associated with cleaning that uniform. You can claim up to $150 per year for laundry without having to provide a receipt or other substantiation. This factors in dry cleaning but if you have dry cleaning receipts that exceed this amount, you can claim the full total of your dry cleaning receipts.
4. Income Protection Insurance
In addition to protecting ourselves and our loved ones with Income Protection Insurance, it comes the added benefit of the premium being tax deductible. Note that this is different to Life Insurance (which is not tax deductible) and you may need to bring in your itemised insurance statement so we can see what portion of your premium you can claim.
5. Work-related Courses / Seminars
Trying to better yourself in your current role or improve your skills in your current position to achieve that pay rise? If you are attending courses and seminars to do just that, then keep all your receipts for course registration fees, travel to the course, accommodation if you are required to stay overnight as well as any meals during the seminars and courses you attend. Diaries and seminar pamphlets are also a good way to substantiate your claim, particularly if you happen to squeeze in some sightseeing activities while you are travelling. The costs will need to be apportioned according to work-related activities.