Claiming your tax deductions

Claiming your tax deductions


There are different types of deductions that individuals can claim to reduce their taxable income.

Work-related expenses

In order to claim work-related tax deductions, the expenses must have to meet three criteria. Firstly, all the expenses have to be paid by the individual, without being reimbursed by the employer. Secondly, they must be directly related to earning your income. Finally, there must be a record of the expenses (i.e. a receipt).

There are various different expenses that can fall under this category.

  • Vehicle and travel expenses: Commuting between different locations but not usual travel between home and work
  • Clothing, laundry, and dry-cleaning expenses: Cost of work uniform which is distinct and unique (i.e. has a specific logo)
  • Self-education expenses: Any courses or study associated with employees current role, such as textbooks
  • Tools and other equipment: If you purchase tools or equipment, then a deduction for some or all the cost could be claimed

Investment expenses

The cost of earning interest, dividends, or other investment income can also be claimed. This can include:

  • Interest charged on money borrowed to invest
  • Investment property ex[enses
  • Investing magazines and subscriptions
  • The money you paid for investment advice

Home office expenses

A portion of the costs associated with installing your home office can be deducted. The process is now much easier due to COVID-19. It allows people to claim 80 cents per hour for all running expenses. Additionally, people living in the same house can claim this individually, there is no need for a dedicated office.

Other deductions

There are also other deductions available. These include:

  • Union fees
  • The cost of managing your tax affairs
  • Income protection insurance (If not through super)
  • Personal super contributions
  • Gifts and donations to organisations that are endorsed by the ATO as deductible gift recipients
Categories

If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


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