Your handbag is one of many deductions you can make at tax time that you might not be aware of. The main thing with any deduction is you need to be able to prove it is for work purposes. Shoes, dance classes and even dogs are just some of the other things you might be able to claim. We have a free eBook with loads of tips for end of financial year tax savings, but read on below for more deductions you can claim.
What you can claim and how much largely depends on the industry you work in. Luckily, the ATO has over 30 guides for specific industries.
1. Your handbag
As mentioned, provided it is used for work to carry your laptop, phone, stationery and other work supplies, you can claim it!
2. Shoes and clothing
Non slip work shoes for nurses, specific shoes for flight attendants and work boots for various occupations are just a few examples of the types of shoes you can claim depending on your work. For work clothing, it must be a uniform such as work clothing with a logo on it to be able to claim it. You cannot claim a business suit.
Numerous Australians are taking work home with them now. Even if you don’t have a full home office, you might still be able to claim 45c per hour for electricity used when working from home. Keep accurate records of it all.
4. A dog!
Before you get too excited, you can only claim a dog if it directly relates to work such as security or farm work. Expenses such as food and vet bills can be claimed by business owners. As for home based businesses, the family dog can be viewed as a grey area if your dog is used to secure the premises. Your gorgeous pug isn’t going to be claimable.
Whether you donate to a charity or make political donations, amounts over $2 are tax deductible.
6. Mobile phone
Do you use your personal phone for work calls? If so, you might be able to claim it. It’s important you keep accurate records as you can only claim the work portion of the bill, not your whole bill. For example, if around 50% of the use of your phone is for work, you can claim 50% of the bill.
7. Courses and seminars
If you are attending courses, getting an education or even attending investment seminars, they can be tax deductible. Courses and self-education needs to be directly related to your job and investment seminars need to be for an investment you already have such as a rental property.
8. Car expenses
When using your car for work, keep accurate records. Wear and tear, maintenance and petrol can all be claimed. There are rules around what you can claim and when so keeping records helps prove it.
9. Home office expenses
Setting up your home office can be costly, but you can claim a deduction or depreciation on everything you buy for it from computers to printer ink. Electricity and other expenses can also be included. Write down everything and claim what you can.
10. Union and membership fees
The total costs of fees associated with your employment such as union or membership fees for a professional body relating to your work are tax deductible.
11. Tax agent fees
When an agent prepares your tax return you can claim it the following year.
$1 per load if the entire load consists only of work clothing (such as uniforms) or 50 cents per load if it is mixed can be claimed, as can dry cleaning expenses. This for compulsory work uniforms. You can also claim dry cleaning, but if the total amount for these sort of expenses is over $300 you will need proof.
You can’t claim the family caravan every time you take a trip, but if you travel for work and decide to use a caravan instead of paying for hotels and motels, you can claim it. You need to prove it is for business and not personal use.
14. Investment property expenses
Did you know most landlords can claim 2.5% depreciation on the cost of bricks and mortar? While investment properties have a plethora of deductions you can make, including garden gnomes, many landlords forget about depreciation. This is why it is so important to get the right advice with your investments.
Salary sacrificing, boosting your super or splitting it with your partner are just a few of the tax effective tips for superannuation we share in this article. Get your super sorted and use it to your advantage both on your tax this year and in the future when you retire with more money than you would have without these tips.
16. Sunscreen and makeup
Gardners, builders, construction workers and anyone else working outside can claim their sunscreen. Further to the sunscreen, if you are required to work outdoors and your makeup has a sun protection element to it, you can claim that as well.
Industry specific magazines and other subscriptions you pay for which relate to your work can be claimed on your tax.
With all deductions, it is important you keep accurate records to prove what you paid, when you paid it and that it was used for work purposes. While some amounts might seem small, they all add up and can make a big difference come tax time. The sooner you track it, the more you can claim!