What Expenses Can I Deduct For Tax (Individuals)

This is the juicy stuff!

The number one question accountants get is:

“how do I reduce the tax I pay?”

Now that question is a little counter intuitive if you ask me, because if you make more money you pay more tax – so to me, more tax is a good sign!

BUT what we don't want you to do is pay more tax than you need to and that’s where the expertise comes in handy.

If you prepare your return without ready my blogs, signing up to my courses or hiring me as your accountant there is a good chance you are missing out on some nice handy tax deductions (all depends on your situation though)! But, you know... I'm a bit biased...

So what are my tips?

In general the ATO is happy to let you deduct expenses which are incurred in relation to earning or growing your income, so if you keep that in the back of your mind you should have a pretty good idea as to whether or not that NEW SHINY THING is deductible or not!

 

So here are a few key deductions which you might not already be aware of:

 

  • Self-Education Expenses (for when you want to grow your income)
  • Paying for educational courses related to your field (i.e. my accounting masterclasses!)
  • Attending relevant conferences and events
  • Learning new things which could increase your wage
  • Home Office Expenses (if you do any of your work from home)
  • Calculate a % of your home utilities (electricity, gas, internet, phone etc) which relate to your work
  • Subscriptions & Memberships
  • Professional membership fees
  • Subscriptions to magazines or newspapers relevant to your field
  • Accounting Fees
    Whatever you paid your accountant to get your tax done

 

And so many more:

  • Laundry and dry cleaning
  • Uniform expenses (this does not count if your work asks you to wear a suit!)
  • Travel expenses (cannot claim travel from home to work and back, but you can for travel during work hours)
    This includes depreciation on the vehicle you use!
  • Mobile phone and internet expenses (for the % which relates to business use!)
  • Overtime meals
  • Tools and equipment required for your job (includes computers and technology)

 

 

The key to remember: these expenses are deductible in the year they were paid… so that’s why June 30 sales are always so popular (HAPPY EOFY!)

And remember, the ATO does have requirements that you maintain supporting receipts/evidence for the items you claim as deductions so remember to take photos of all those receipts 😊

 

Happy deducting!

xxx
Lauren

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