As tax season approaches, it’s crucial to take advantage of all the tax deductions available to you. While the specific deductions you can claim depend on your personal situation, there are a few key ones that most people often overlook. Here’s a rundown of some essential tax deductions to keep in mind:
- Motor Vehicle Expenses
– If you use your motor vehicle for work, maintaining a logbook is essential. You need to keep this logbook for at least 12 consecutive weeks, noting the opening odometer, your destinations, and the closing odometer. This helps determine the percentage of business use or the number of kilometers travelled in a year, maximizing your deductions.
- Laundry and Uniforms
– Claiming laundry expenses for work-supplied uniforms and occupation-specific attire, such as a chef’s uniform or high-visibility clothing, can be significant. Keep track of the number of full loads of laundry you claim per week. For items requiring professional cleaning, retain your dry cleaning receipts.
– Receipts for new uniforms, high-vis gear, or work boots are necessary to claim these deductions.
- Other Work-Related Expenses
– Union fees and donations are common deductions. Additionally, think outside the box: any expense related to your work, such as telephone usage or home office costs, could be deductible.
– Keep all receipts and details for these expenses, as they can add up and provide substantial savings.
Remember: Items like nice suits and dresses for work events are not deductible. The ATO is strict about what qualifies as work-related, so it’s essential to stay within the guidelines.
By keeping thorough records and understanding what you can claim, you can maximise your deductions and potentially reduce your tax liability. Give all your receipts and details to your tax professional at the end of the year, and they can help you sort through what can and can’t be claimed.
In conclusion, staying organised and informed about potential deductions is key to optimising your tax return. Make sure to track all relevant expenses throughout the year and consult with your tax agent to ensure you’re taking full advantage of the deductions available to you.