06 February 2019
One of the best ways to bring your taxable income down (hopefully into a lower personal tax bracket) is by being aware of all the deductions you can claim. It may even reward you with a larger tax return.
Here are just a few simple ways you might be able to claim personal tax deductions on your income.
Donations to charity
Charity donations are a great item to claim, and they can really add up over the year. To claim, the donation or gift must meet the following guidelines:
- The organisation has Deductible Gift Recipient status
- The gift or donation provides no material benefit to yourself (i.e. you do not receive anything in return)
- The gift is over $2
- You have a written receipt for the donation
- The donation must come in the form of either money or a financial asset
Travel expenses
Travel expenses - particularly vehicle costs - are another great way to claim a deduction, providing that you’ve used your vehicle for eligible, tax-deductible purposes.
Claimable vehicle expenses may include:
- Depreciation on your vehicle
- Registration costs
- Insurance costs
- The running and maintenance of your vehicle (such as fuel and servicing)
- Travel from one workplace to the next
- Travel to other work-related sites (such as clients’ premises)
To make vehicle travel claims, either a logbook must be kept for twelve weeks detailing dates, times, odometer readings and destinations; or you can claim 68 cents per kilometre for a maximum of 5,000kms per vehicle per year.
Work-related expenses
General work-related items that may be claimed can run into the thousands, so long as they meet one or more of the following criteria:
- The item is essential for work purposes (such as a tradesperson’s tools)
- The item is required for health and safety reasons (such as sunscreen if working outside, or safety goggles)
- The item is for training or education purposes (such as a course)
Running your business from home
Not only does working from home have the advantage of being able to work in your pyjamas, but there are a myriad of ways you can claim expenses, regardless of whether you’re working full-time or part-time. These include:
- Furniture and appliances (such as computers, desks, chairs and mobile phones)
- Phone calls from either a landline or mobile phone
- A portion of your monthly internet bill, as well as utilities (e.g. gas and electricity)
Work clothing
If you’re required to wear a specific uniform or article of clothing, you may be entitled to claim it. However, this is only if:
- It is work-specific and compulsory to wear (such as high-vis)
- It has a logo or is registered with AusIndustry
- It is only worn for work-purposes, during work times
- It is required for health and safety reasons (such as a hard hat)
- It is specific to an occupation (such as a nurse’s uniform)
For more advice on what you can claim at tax time, contact one of the team at AR Advisors today.
