Understand your 2016 Tax Return. Tax Deductions for Tradies and Contractors Dingley Village
Author – Yohan Soza, MAS Tax Accountants Dingley Village│ December 2016
There are several benefits to being a self-employed Tradesman or Contractor, such as flexible working hours, being your own boss and growing your professional portfolio. However, when it comes to your tax return, it can be a bit more complicated. The best way to be prepared for the Tax Season, is to remain organised throughout the year and seek the right tax advice for your tax return. Be aware of your Tax Deductions for Tradies and Contractors Dingley Village and be a tax winner.
Being a self-employed Tradesman or Contractor, you may have more tax responsibilities and liabilities to consider. These could include reporting your income and work expenses, and keeping proper business records
Specialising in tax work for a variety of industries, we understand that your tax needs may differ from those of a standard salary or fixed income employee. By aiming to provide quality, personalised tax return services, we can help you to find the best outcome for your situation. This means that you can develop a better understanding of your tax obligations and legally maximise your tax refund, without the worry of making a potentially costly mistake.
To help you better understand, manage and maximise your tax return, we have complied a list of tax deductions that most Tradesmen and Contractors should be able to claim. This is shown below, in Table 1.
Remember that to be able to claim these expenses, the item must have been required for your business or job. It is essential that you keep well-organised and easily accessible records, such as receipts or invoices, in a paper or electronic system. Also, you cannot claim work-related expenses if you were reimbursed by your employer. If you don’t have the correct records or use misleading information and are audited by the ATO, you could be heavily penalised, including fines and additional administration fees.
PLEASE NOTE that this is not an exhaustive list and that you should always seek advice from your Accountant before making a claim.
Table 1: Tax Deductions for Tradies and Contractors Dingley Village List
Work-related Expense |
Details |
Is it Tax Deductible? |
|
Protective clothing |
All protective work-related clothing, including steel-capped boots, high-vis clothing, helmets and goggles. |
Yes |
|
Laundry |
Laundry costs for only work-related uniforms |
Yes |
|
Tools & Equipment |
May be able to claim up to $20,000 on business-related assets, between 12 May 2015 and 30 June 2017 |
Yes |
|
Repairs |
Related to work assets only |
Yes |
|
Transport |
Work-related public transport or vehicle expenses, such as fuel and servicing. This excludes standard travelling to and from work. If you use your vehicle for business and private reasons, you can only make a proportionate claim |
Yes |
|
Education costs
|
Educational courses or related costs that are required for your current job and/or work enhancement |
Yes |
|
Mobile Bills |
Only work-related mobile phone costs can be included. If you use your mobile for business and private reasons, you can only make a proportionate claim |
Yes |
|
Sun protection |
Sunscreen, sun hat and sunglasses used during work |
Yes |
|
Home office
|
If a part or a room at home is used for work related activity, you may be able to claim a portion of the running expenses, such as rent, electricity and internet |
Yes |
|
Stationery |
Used for work or home office |
Yes |
|
Interest |
Borrowed for work related financing, such as for assets or equipment |
Yes |
|
Tolls and Parking Fees |
Incurred during work related travel |
Yes |
|
Trade union |
Trade related association body expenses, including annual practising |
Yes |
|
Association fees |
Certificate costs |
Yes |
|
Technical publications |
For the line of work |
Yes |
|
Tax/Accountancy fees |
Tax, BAS and Accounts preparation |
Yes |
|
Public liability |
If required to carry out work |
Yes |
|
Legal expenses |
For work related contracts |
Yes |
|
Insurance |
Income continuance, sickness and accident |
Yes |
|
Meals (1) |
Routine meals during work and travel |
No |
|
Meals (2) |
If you worked after normal hours and overnight travel |
Yes |
|
Fines |
Imposed by court or law |
No |
|
Entertainment |
Personal entertainment, such as dining out with friends |
No |
|
Everyday Clothing |
Not related to work |
No |
|
Driver’s license |
Renewal and acquiring fees |
No |
|
Club membership |
Such as Social Club fees |
No |
|
Child care expenses |
Child support expenses |
No |
|
Other |
Any other costs incurred to generate work income |
Most often – Yes |
RELATED: Learn more about our Mount Waverley and Dingley Village office, including our Tax, Accounting and Business services.
For more information or to make an appointment, speak with our expert Tax Accountants at MAS Tax Dingley Village. Please contact us below or call us directly on 045 1011 399
