As an Australian taxpayer, you’re required to lodge your income tax return with the ATO each financial year, ending 30 June. While this is a standard obligation, it’s also an opportunity to review any eligible deductions that could reduce your taxable income.
By claiming allowable deductions, you can legitimately reduce the amount of income you’re taxed on – potentially lowering your overall tax bill.
What Is Taxable Income?
Your taxable income is the amount remaining after all allowable deductions have been subtracted from your assessable income. Claiming deductions reduces this figure and, as a result, the tax payable.
Work-Related Deductions:
If you’ve incurred out-of-pocket expenses directly related to earning your income, you may be entitled to claim these as deductions. To be eligible, the following conditions must be met:
- You paid for the expense yourself (and were not reimbursed)
- The expense is directly linked to your work or income-producing activities
- You have documentation (e.g. receipts or logbooks) to support your claim
Examples of commonly claimed work-related expenses include:
- Work-related vehicle and travel costs
- Tools, equipment, laptops and office supplies
- Uniforms, protective clothing and laundry
- Home office running expenses
- Work-related training, courses and conferences
- Membership fees, licences, certifications and subscriptions
- Overtime meals (in certain cases)
- Certain health-related costs if directly tied to your work
Other Deductible Items:
Beyond employment-related costs, other deductions may be available depending on your financial situation, including:
- Gifts and donations to registered charities
- Expenses related to earning investment income
- Personal superannuation contributions
- Income protection insurance premiums
- Fees paid to manage your tax affairs
Keeping Records:
Accurate record-keeping is essential when it comes to substantiating claims. The ATO requires proof that expenses were incurred and meet the eligibility criteria. You can use tools such as the ATO’s myDeductions app to track and store receipts, vehicle trips, and other relevant expenses.
When it comes time to lodge your return, these records can be uploaded to us for lodgement on your behalf.
Maximising your eligible deductions can lead to meaningful tax savings. Our team can help ensure you’re claiming correctly and setting up reliable systems for managing your records throughout the year.
Get in touch with our team to discuss your circumstances and make the most of your allowable deductions.
