Talking Cents

Common Tax Deductions That You May be Able to Claim

As tax season is right around the corner, it is important that everybody knows what deductions are available to them, and how they would be able to make these claims. We at M.A.S Partners, a small business accounting firm in Sydney, have compiled a list of common tax deductions that you may miss to claim- as it is our job to make sure everyone is dealt a fair hand when filing their taxes.

Vehicle and Travel Expenses
You are eligible for vehicle and travel expenses if you have car expenses where you use your car in the course of performing your job- for example uber drivers can claim returns on a percentage of their insurance based on how often they use their car for work. Additionally, claims for travel expenses will be accepted if you attend work-related conferences away from your normal workplace; you travel between two separate places of employment; or have accommodation expenses for your work.

Home Office Expenses
Due to COVID-19, many people are still working from home, and as such, many are eligible for home office expenses claims. These expenses consist of phone and internet expenses, computer consumables, and home office equipment- such as computers, webcams, and printers. Expenses on items below $300, you are able to receive a full reduction if it is solely for work purposes. For items above $300, you are able to claim the depreciation value. Furthermore, claims for electricity associated with heating, cooling and lighting the area from which you are working and running items you are using for working.

Education
Self-education and study expenses that relate to your current employment activities are able to be claimed. The course you study must have a sufficient connection to your current employment activities and maintains or improves a skill or knowledge that you require in your employment activities; or results in an increase in your income from your current employment activities. These expenses can include accommodation, stationary, textbooks and student union fees.

Clothing and Laundry Expenses
Occupation specific clothing, protective clothing, and work uniforms - including the cleaning costs for the clothing are all able to be claimed. The public must be able to easily recognise your occupation from your clothing for it to be claimable. To make a claim for these deductions, you will require written evidence of the costs.

Gifts and Donations
Often, small businesses may give away thousands of dollars in donations, claiming hundreds of dollars back in tax deductions. If you made a gift or donation to a deductible gift recipient (DGR)- an organisation that registers to receive tax deductible gifts- you are eligible for a tax deduction. To be eligible for this deduction, gift or donation must be voluntary, where you receive no material benefit in return; and the gift must be money or property.

Hire a Professional
Whilst we may have listed a few tax deduction you are able to claim; the list of claims is endless- where you may miss out on hundreds to thousands of dollars in tax deductions. Consider hiring us, M.A.S Partners, a small business accounting firm based in Zetland Sydney, where we are passionate accountants, eager to help small organisations develop. On top of helping your company with tax, we also offer plenty of other services such as handling your payroll and offering advice. For more information on our services click here.