Please ensure to fill in all the relevant forms before we start preparing your tax return. Where applicable please apply for Medicare levy exemption certificate yourselves. However, we do a free amendment to claim your Medicare levy, once you provide us with the Medicare levy exemption certificate. For your convenience and faster processing, we have provided Medicare levy exemption certificate application form above. Please note that we do not provide photocopying and/or certification services.
The following tips may help you to legitimately reduce your tax liability.
Claim work-related deductions
Claiming all work-related deduction entitlements may save considerable tax. Typical work-related expenses include employment-related telephone, mobile phone, internet usage, computer repairs, union fees and professional subscriptions.
Note that the Australian Taxation Office (ATO) will again check claims made in real time. Claim only what you are legally entitled to and be sure to have all necessary receipts or credit card statements to support them.
Claim home office expenses
When part of your home has been set aside primarily or exclusively for the purpose of work, a home office deduction may be allowable. Typical home office costs include heating, cooling, lighting and even office equipment depreciation.
To claim the deduction, you must have kept a diary of the hours you worked at home for at least four weeks.
For more information on home office expenses see www.ato.gov.au
Claim self-education expenses
Self-education expenses can be claimed provided the study is directly related to either maintaining or improving current occupational skills or is likely to increase income from your current employment. If you obtain new qualifications in a different field through study, the expenses incurred are not tax deductible.
Typical self-education expenses include course fees, textbooks, stationery, student union fees and the depreciation of assets such as computers, tablets and printers.
Higher Education Loan Program (HELP) repayments are not deductible. You must also disallow $250 of self-education expenses, which can include non-deductible amounts such as childcare costs.
Claim depreciation
Immediate deductions can be claimed for assets that cost under $300 to the extent the asset is used to generate income. Such assets may include tools for tradespeople, calculators, briefcases, computer equipment and technical books purchased by an employee, or minor items of plant purchased by a landlord.
Assets costing $300 or more that are used for an income producing purpose can be written off over a period of time as a tax deduction. The amount of the deduction is generally determined by the asset’s value, its effective life and the extent to which you use it for income-producing purposes.
Maximise motor vehicle deductions
If you use your motor vehicle for work-related travel, there are only two choices for how you can claim.
If the annual travel claim does not exceed 5000 kilometers, you can claim a deduction for your vehicle expenses on the cents-per-kilometer basis. The allowable rate for such claims changes annually, so it is important to obtain this year’s rate from the ATO. Such claims must be based on reasonable estimates.
If your business travel exceeds 5000 kilometers, however, the log book method is required to claim a deduction for total car-running expenses.
Rental property deductions
Owners of rental properties that are rented or are ready and available for rent can claim immediate deductions for a range of expenses, such as:
interest on investment loans
land tax
council and water rates
body corporate charges
insurance
repairs and maintenance
agents’ commission
gardening
pest control
leases (preparation, registration and stamp duty)
advertising for tenants
reasonable travel to inspect propertiesLandlords may also be entitled to annual deductions for the declining value of depreciable assets (such as stoves, carpets and hot water systems), and capital works deductions spread over a number of years for structural improvements like remodeling a bathroom.
It’s worth noting that the government has proposed that it will change the law to no longer allow travel deductions relating to inspecting, maintaining, or collecting rent for a rental property from 1 July 2017. This is an integrity measure to address concerns that such deductions are being abused.
Sourced from CPA Australia
For more information on work-related deductions you can claim on your tax return please visit: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/
Frequently Asked Questions
Am I required by law to lodge a tax return?
If you paid any tax during the year through PAYG withholding or any other method, you should lodge your individual tax return in order to see if you are eligible for a refund. The ATO does require you to lodge your return under a variety of circumstances – to determine if the ATO requires you to lodge your return, please visit: https://www.ato.gov.au/
How can I retrieve late or lost payment summaries?
If you do not have all of your documents, or any document is wrong, contact your payer. Ask your payer to give you a signed copy of your payment summary, or a letter or signed statement showing the correct details.
What is personal services income and how is it taxed?
Personal services income can include:
personal services income under PAYG voluntary agreement
personal services income from which an amount was withheld because you did not quote your ABN
personal services income of an independent contractor working under a labor hire arrangementThere are special rules for the tax treatment of personal services income earned by sole traders including contractors and consultants. If you had personal services income as a sole trader and you were subject to the special rules, you will not be able to claim certain deductions – for example: rent, mortgage interest, rates or land tax for your home, or payments to your spouse (or other associate) for support work such as secretarial duties. For more information, please visit: https://www.ato.gov.au/
What are some fringe benefits?
Basically, a fringe benefit is a benefit provided to you or an associate (for example, your spouse or children) because of your employment. You can be a current, former or future employee.
Benefits can be provided by:
your employer
an associate of your employer, or
a third party under an arrangement with your employerFor more information, please visit: https://www.ato.gov.au/
Do I report interest earned as a resident or non-resident in Australia?
Yes, report interest earned from financial institution accounts and term deposits unless you were a non-resident and have paid, or should have paid, non-resident withholding tax on that interest.
Non-Residents: If you were a non-resident for tax purposes for all or part of the year and you received or were credited with interest during the period, do not include that interest.Can I deduct the allowances I received from my employer?
Receiving an allowance from your employer does not automatically entitle you to a deduction. You must still meet the basic rules listed above to make a claim. You can claim only the total amount you incurred even if the allowance is more. For more information, please visit: https://www.ato.gov.au/
How long do I need to keep my records? Why do I need them?
You must keep your written evidence for five years from the date you lodge your tax return. If at the end of this period you are in a dispute with the Tax Office that relates to a work expense, you must keep the relevant records until the dispute is resolved. You must have written evidence to prove your claims if your total claims exceed $300. The records you keep must prove the total amount, not just the amount over $300. You need to keep these records to prove your deduction claims in case the ATO audits you. For more information, please visit: https://www.ato.gov.au/
I use my car to go to work; can I claim this in my deductions?
You cannot claim the cost of normal trips between home and work as that travel is private.
You cannot claim it even if:You did minor tasks – for example, picking up the mail on the way to work or home
You had to travel between home and work more than once a day
You were on call – for example, you were on standby duty and your employer contacted you at home to come into work
There was no public transport near where you work
You worked outside normal business hours – for example, shift work or overtime, or
Your home was a place of business and you travelled directly to a place of employment.
For more information, please visit: https://www.ato.gov.au/Source from Australian Tax Office
