It pays to know what you can claim

Are you unsure of what or how much you can claim as deductions in your tax return? We're here to help.

Deduction entitlements can be confusing, it's true. Trying to figure out depreciation values or calculating use percentages can be hard enough, but sometimes the trickiest part can simply be understanding what you can and can't claim in the first place. 

And when it comes to tax, it really can pay to know what you're eligible for. That's where our Tax Deduction Guide can help!

Below is a quick breakdown of the various expense criteria that you may be able to claim as a deduction at tax time, as well as some useful tools and links to make things easier. 

These are the most common tax deduction type people know about. Despite that, sometimes the line can seem blurry when it comes to what is and isn't included.  

You can claim a deduction for work-related expenses when:

• You have spent the money yourself and weren't reimbursed
• It directly relates to you earning your income
• You have a record to prove the cost

Non-Work Related Expenses

Non-work related expenses are often forgotten about by a lot of people, but they can help to substantially reduce your taxable income depending on your circumstances. 

You can claim a deduction for them when:

• You personally incurred the cost
• You have a record to prove the expense
  

Keeping Records

It's recommended that you keep any records related to your tax for five years (good-quality digital copies are an easy way to do this). Any receipts should include:

• Name of supplier
• Amount of expense
• Nature of the goods or service
• Date of expense
• Date of receipt

Deduction Tools

You can use the ATO's convenient myDeductions app to keep track of your deductible expenses and store your receipts as they come up throughout the year.

However, if you don't have the app and need to work out the deductible amount of a depreciating asset, you can use their online Depreciation and Capital Allowances Tool to do the math for you.

Preparing your tax return each year and compiling your deductions can seem daunting but with a bit of knowledge and preparation, you can substantially reduce the stress and confusion. 

Interested in having a professional do the hard work for you? Get in touch with us today and don't forget, it's deductible!