Tax time can be a stressful period, and with so many deductions available, it’s not uncommon for Australians to leave money on the table. Knowing what you’re entitled to claim can make a world of difference in reducing your taxable income and boosting your refund. Here are some of the most overlooked tax deductions you should be aware of.
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Home Office Expenses
With the rising trend of remote work, more Australians are eligible to claim home office expenses. Everything from electricity and internet usage to office supplies can be included. However, many miss out on claiming items like furniture or technology upgrades. For example, if you bought an ergonomic chair or a second monitor for your home office, those purchases could be deductible. Keep detailed records, and don’t forget to calculate the percentage of expenses related to work use versus personal use.
Car Expenses for Work
If your job requires you to travel between locations, such as client sites or different offices, you might be eligible to claim car expenses. The easiest way to do this is by using the cents-per-kilometre method. But be careful, your daily commute from home to your regular workplace doesn’t count. Additionally, if you’ve had your car detailed or repaired for work-related purposes, those costs could also be deductible as long as they’re clearly linked to your job.
Self-Education Costs
Taking a course to further your career? Any self-education expenses directly related to your current job, such as tuition fees, textbooks, or software subscriptions, may be deductible. For example, if you’re an accountant enrolled in a professional certification program, those costs could lower your taxable income. However, courses that don’t have a clear connection to your work, like a general yoga class, won’t make the cut.
Professional Memberships and Subscriptions
If you’re part of a professional association or subscribe to industry-related publications, these expenses could be tax-deductible. For instance, if you’re a teacher and pay fees to an educational organisation or receive a specialised teaching journal, those costs are likely claimable. Make sure the subscription or membership is directly linked to your employment.
Work-Related Uniforms and Cleaning
Not all Australians realise that the cost of buying, repairing, or cleaning a work uniform can be claimed. The uniform must be specific to your job, generic office attire won’t count. Think about the shirts embroidered with your company logo or a specific type of clothing required for safety. If you use a dry cleaner or buy detergent for uniform care, don’t overlook these expenses when filing your claim.
Donations to Charities
Did you donate to a registered Australian charity? Many people forget to claim deductions for their charitable contributions. Whether it’s a one-off donation or a recurring contribution, as long as you have a receipt, this can be deducted. Even smaller amounts add up over the year, so keep track of everything.
Union Fees
Are you a member of a union? Union fees are one of the simplest deductions to claim but are often overlooked. These fees directly relate to employment, making them fully deductible. If your deduction isn’t already captured in your payment summary or payslip, take note of your annual payments for your tax return.
Investment-Related Expenses
If you’re building wealth through investments like shares or rental properties, there are potential deductions available. For shares, investment adviser fees, platform subscriptions, and even interest on loans used for investment purposes can be deducted. Property investors can claim costs like property management fees or depreciation on assets in the property.
To maximise these claims, consulting a financial planner can help you identify all eligible deductions.
Cost of Tools and Equipment
If your job requires tools or equipment, whether you’re a tradie, chef, or architect, you could potentially deduct those purchases. For instance, buying a new set of wrenches or replacing a broken power drill is deductible. Equipment over $300 usually needs to be depreciated over time, so it’s important to keep track of receipts and costs.
Claiming these often-overlooked deductions starts with being organised and knowing what’s relevant to your situation. Regularly keeping receipts, reviewing work-related expenses, and consulting professionals can ensure you don’t miss any opportunities to boost your refund.