Nobody wants to pay more tax than they have to, so it pays to know exactly what you can claim as a tax deduction when it comes time to fill in your Tax Return.
Many occupations can claim deductions for items such as car expenses, clothing, home office, meals, tools and equipment required for you to complete your job, union fees and other miscellaneous expenses.
Before you can claim though, in general there are several requirements you must meet if you want your claim to be successful. They include:
1. You must have spent the money yourself and weren’t reimbursed
2. It must be directly related to earning your income
3. You must have a record to prove it
If the expense was for both work and private purposes, you must make sure you only claim a deduction for the work-related portion. If you claim the entire amount, the Australian Taxation Office (ATO) can disallow your claim and impose penalties for making a false claim.
Below you can download PDF Checklists prepared by the ATO for a number of professions, for rental property investors, and small business owners. The Checklists give you a general summary of what can and can’t ordinarily claim, but this is only relevant for you after the end of the financial year.
Why Should You Do Your Tax Planning Well Before The End Of The Financial Year?
The reason for getting your tax planning done as early as possible is that once June 30 comes around, you can only record what you’ve done during the year, and then complete your tax return based on that.
Everything has been earned, and the money has usually been spent or invested. There’s not a lot you can do in July to legitimately minimise your tax liability for the previous financial year. That means you need to decide on a strategy as soon as possible, and then implement the tax planning recommendations your advisor gives you before the 30th of June if you want to legitimately maximise your income and minimise the tax you pay.
When you don’t do this planning, you’re missing a great opportunity when you’re having your tax return prepared. That’s why rather than waiting until the end of the financial year, you should see an advisor and book a tax planning session as soon as possible.
When you do there’s a very good chance you’ll be able to pay less tax, so you can keep more in your pocket for important things like holidays or travel, your hobbies or other things you want to do, or maybe paying down your home loan to give yourself a savings buffer for the future.
But if you leave it too late, there’s nothing your advisor can really do to help. So in addition to downloading your Tax Deduction Checklist below, call your tax advisor and make an appointment for a tax planning session now.
Or if you don’t currently have a tax advisor, feel free to give us a call on 1300740066 or get in touch by using this contact form, and we can help you develop a tax planning strategy to maximise your income and wealth, and minimise the tax you have to pay, based on your own personal circumstances.
Download Your Occupations’ Tax Deduction Checklist Below
To download your Checklist, ‘Right Click’ on the appropriate link below, and save the PDF file to your computer. If you don’t see your profession or occupation here, you might find it listed on the ATO’s website at https://www.ato.gov.au/occupations
ATO Guidelines For Claiming Work Related Expenses
The ATO’s has also created Tax Deduction Guidelines for claiming specific expenses. To download your copy of the Guidelines, please ‘Right Click’ on the appropriate link below, and save the PDF file to your computer.
Tax Tips For Rental Property Owners
Owning an investment property can give you additional expenses to claim. The ATO has prepared a short Guide covering some tax-smart tips investment property owners should be aware of.
Tax Tips For Small Business Owners
And if you have a small business, here’s a Checklist prepared by the ATO that looks at topics such as record keeping, income, expenses and deductions, deductions for employers, tax concessions, and what to do after you lodge your tax return.
The ATO have also released a Small Businesses Q&A Guide that answers many of the most common questions business owners have at tax time.
And remember, if you are a PAYG taxpayer, have a rental property, or you are in business and you don’t currently have a tax advisor, feel free to get in touch by using this contact form, or give us a call on 1300740066 and we can help you develop a tax planning strategy to maximise your income and wealth, and minimise the tax you have to pay, based on your own personal circumstances.
James Huy Vuong