Are you making the most of your allowable tax deductions? Individuals can claim for general work-related expenses as well as occupation-specific expenses and working from home.

The Australian Taxation Office (ATO) automatically receives information from your employers about salary and wages paid to you during the financial year. You are required to declare all income sources.

Wages and salaries from employment

  • Pension, annuities or government payments such as JobSeeker or JobKeeper
  • Interest and dividends income from investments
  • Business or hobby income
  • Foreign income
  • Crowdfunding
  • Sharing economy income such as Uber or Airbnb
  • Any other income such as prize money, compensation or insurance payments

Even small amounts of income earned from the above sources, need to be declared on your tax return. Throughout the year record anything you have earned apart from salary and wage payments from your employer.

Records you will need:

  • Bank statements that show interest income;
  • Proof of earnings from sources such as crowdfunding or share economy platforms;
  • Records of business or hobby income;
  • Records of government payments received;
  • Records of income received from overseas sources, prize winnings, insurance or investments.

 Tax Deductions

As an employee you are entitled to claim work-related expenses as a tax deduction. To be able to claim a tax deduction, you need to have spent money out of your own funds and not been reimbursed by your employer. The expenses need to relate to your earnings as an employee and invoices or receipts are required as proof of payment for any work-related expense.

Expenses you may be eligible to claim

  • Vehicle and travel expenses – keep a travel diary or log book to record details of trips taken for your employment.
  • Clothing, laundry and dry-cleaning expenses – this relates to occupational specific clothing, uniforms and protective gear.
  • Home office expenses
  • Self-education expenses – some education expenses relating to your current employment are claimable.
  • Tools and equipment – small tools, protective items, professional references and laptops are some examples of equipment that may be claimed.

 

Occupation and Industry Specific Guidelines

The ATO has recognised some occupations and industries have specific requirements that employees need to pay for. There are ATO fact sheets available for many industries, including hairdressers, teachers, performing artists, hospitality workers, lawyers, medical professionals and more.

Superannuation

If you have made a personal super contribution separate to the employer’s super guarantee contribution, you may be able to claim this as a tax deduction. You would need to provide your super fund with a notice of intent to claim form and receive acknowledgement from the fund before completing your tax return.

Book a time with us now to talk about tax and we will make sure you maximise your allowable tax deductions this year.