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Common expenses that people forget to deduct

Kateryna
  • Updated

 

Suitable for: Anyone who is looking for some key deductions to save money off their BAS or income tax return

Tax Difficulty: Beginner

Airtax Experience: Anyone

Time to read: 2-4 minutes

 

Save money by claiming these deductions

Always remember that in order to claim a work-related deduction:

  • You must have spent the money yourself, and weren't reimbursed for the expense
  • It must directly relate to earning your income
  • You must have a record to prove that it occurred in the given period

Common expenses that people forget to claim a deduction for:

Mobile Phone Expenses

Using phone to check emails and make work calls? You can claim the business use percentage of your mobile phone expense as a deduction.
Work-related clothing

You can claim a deduction if you are required to wear a uniform or specialised safety clothing at your workplace.
Work-related self-education expenses

If you have undertaken a course that is related to your job then you can include this as a deduction. The course must maintain or improve the skills or knowledge you require in your current work activities.

Working from home?

There are many home office expenses you can claim if you are working from home. If you work from home from a multi-purpose area such as the dining room then you can claim a portion of it as a deduction.
Full cost for items up to $300

If you have a designated area at home for work purposes such as a study then you can all the expenses above as well as claiming home office running expenses which covers the cost of heating, cooling and lighting. There are two different methods of calculating your running expenses.
Cost of managing your tax affairs

If you used an accountant to prepare your tax return last year then the amount you paid is deductible in your current year return.
  • Work related subscriptions – e.g. LinkedIn Premium, magazine subscriptions, journals
  • Attending any work-related seminars, courses, conferences or workshops
  • Business or Professional associations – E.g. Australian
  • Work-related phone and internet expenses
  • Equipment depreciation for items over $300

Through either the (1) fixed rate of 67 cents per hour (popular method), or (2) calculating your actual expenses
  • You can claim a deduction for donations or gifts for an amount over $2 made to an Australian registered charity and to certain international aid agencies.

 

Got a Question?

If you want to speak to someone about your current Airtax income tax return, book in a Tax Assist call or Tax Professional call with a tax specialist.

This document merely provides a broad outline of the subject and is necessarily general in nature.  If you require specific advice, which is tailored to your specific circumstances, please do not hesitate to contact us (fees would apply).

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