Make the most of tax time
As tax time approaches, it’s important to know the types of things you can claim.
It’s important to remember that in order to claim, you must have made the purchase in the course of earning your assessable income, and it can’t be a private, domestic or capital expense.
Don’t sell yourself short this year by not being prepared. Read on for the different types of claim you may be able to make.
- Travel expenses: You can claim vehicle and other travel expenses directly connected with your work, but you can't claim for normal trips between home and work, because they are considered private travel.
- Uniform/work wear: You can claim a deduction for the cost of buying and cleaning work-specific clothing, protective clothing and unique distinctive uniforms.
- Gifts/Donations: You can only make tax-deductive gifts or donations to organisations that have the status of deductive gift recipients.
- Home office expenses: You may be entitled to claim deductions for home office expenses if you keep records. Running costs may be deductible.
- Investment expenses: You can claim a deduction if you are able to show that you incurred expenses earning interest, dividend or other investment income.
- Education: You may be able to claim a deduction for self-education expenses if your study is work-related – this is generally capped at $250.
- Equipment: If you buy tools, equipment or other assets to help earn your income, you can claim a deduction for some or all of the cost.
These are simply some of the basic ways you can make deduction claims.
You may be able to claim other deductions not previously mentioned.
To determine whether it’s deductable or not, the general rule of thumb is – if you need to spend money to earn income, you can usually claim it – either as an immediate deduction, or over time.
Now is the time to get your head around your taxes and potential deductions so you can make the most of tax time this year.
This is general information so make sure you speak to your tax adviser or accountant for specific advice when filing your 2013/14 tax return.