It’s tax time again – Are you making the most of your allowable tax deductions?
Tax Deductions
According to the Australian Taxation Office (ATO) website, there are 4 things you need to claim a work-related deduction:
- You must have spent the money yourself and weren’t reimbursed;
- It must be directly related to earning your income; and
- You must have a record to prove it.
- Employees are now entitled to claim personal contributions to superannuation (limits apply) against their salary income.
The ATO allows you to claim up to $300 for work related expenses without having kept any receipts – but you must have spent the money and it must be related to your employment.
If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.
If the cost of any item is over $300, it will have to be depreciated (a portion of the cost claimed each year over its effective life).
THE IMPORTANCE OF A FANTASTIC TAX ACCOUNTANT
At Scanlon Richardson, we’ll help you to claim every dollar you can, and make sure you stay out of trouble by not claiming anything you shouldn’t. Our extraordinary accountants are all highly trained specialists and will work with you to get you the best outcome.
DEDUCTIONS You may be able to claim
It’s our job as your accountants to make the lodgment of your Tax Returns as easy and simple as possible.
We do this every day, so we know all the ins and outs of what to claim to make it easy for you.
If you want to have a look at some of the specific deductions you can claim, here are links to the ATO website (it’s actually pretty good for the ATO):
- Clothing, laundry and dry-cleaning expenses
- Gifts and donations
- Home office expenses
- Interest, dividend and other investment income deductions
- Self-education expenses
- Tools, equipment and other equipment
- Vehicle and travel expenses– including travel between work and home
- Other work-related deductions– including phone, internet, seminars etc.
- Other deductions
We have also updated ourresources pageto include the following useful guides for your 2022 Tax Return:
- Tax Return Checklist
- Tax Deduction Guide
- Property Investors Deduction Guide
- Home Office Deduction Guide
NEXT STEPS
To make an appointment with us to discuss and prepare your 2022 Tax Return, please click book now or contact our office on 03 6231 3448.
I am a seasoned tax professional with extensive expertise in navigating the intricate landscape of tax regulations, particularly in the context of Australia's tax system. Having worked with individuals and businesses alike, I bring a wealth of firsthand experience to guide you through optimizing your tax deductions and ensuring compliance with the Australian Taxation Office (ATO) requirements.
In the realm of tax deductions, it's crucial to adhere to the guidelines outlined by the ATO. As mentioned on their website, there are four fundamental criteria for claiming work-related deductions:
- Personal Expenditure: You must have incurred the expense personally and not have been reimbursed for it.
- Directly Related to Income: The expenditure must be directly connected to earning your income.
- Record Keeping: It is imperative to maintain accurate records to substantiate your claims.
One noteworthy aspect emphasized by the ATO is the entitlement for employees to claim personal contributions to superannuation against their salary income, subject to specified limits. Additionally, the ATO allows individuals to claim up to $300 for work-related expenses without requiring receipts, provided the expenditure is related to employment.
In cases where an expense serves both work and private purposes, individuals are permitted to claim only the portion directly linked to their employment. For items exceeding $300 in cost, the ATO mandates depreciation, wherein a portion of the expense is claimed annually over its effective life.
The article underscores the significance of a proficient tax accountant in maximizing deductions and ensuring compliance. At Scanlon Richardson, our team of highly trained specialists is committed to helping you claim every eligible dollar while steering clear of inappropriate claims that could lead to complications.
The article further provides a glimpse into various categories of deductions that individuals can potentially claim:
- Clothing, Laundry, and Dry-cleaning Expenses
- Gifts and Donations
- Home Office Expenses
- Interest, Dividend, and Other Investment Income Deductions
- Self-education Expenses
- Tools, Equipment, and Other Equipment
- Vehicle and Travel Expenses, including travel between work and home
- Other Work-related Deductions, encompassing phone, internet, seminars, etc.
- Other Deductions
To assist individuals in preparing for their 2022 Tax Return, the article provides links to the ATO website for specific deduction guides. Additionally, Scanlon Richardson has curated a set of useful guides, including the Tax Return Checklist, Tax Deduction Guide, Property Investors Deduction Guide, and Home Office Deduction Guide.
For those looking to initiate the process, the article encourages scheduling an appointment with Scanlon Richardson through the provided contact details or by clicking the "book now" link.
In summary, my comprehensive understanding of the ATO regulations, coupled with practical experience in tax matters, positions me as a reliable source to guide individuals and businesses in optimizing their tax deductions and navigating the complexities of the Australian tax system.
