Tax Tips on Work-Related Deductions for your Tax Return 2019 Geelong
Author │ Lal Paulose – MAS Tax Accountants Geelong. P: 03 5222 3265
It’s End of Financial Year and the perfect time to start thinking about your tax return 2019 Geelong. Assisting individuals and businesses with their tax responsibilities; and specialising in the tax matters for Medical Professionals and Practices, our expert Geelong Accountants can help you.
This year, the Australian Taxation Office (ATO) has received a boost in funding that will enable them to have a stronger focus on checking tax deduction claims. They will be ensuring that taxpayers are claiming the correct work-related expenses, that are in line with your profession standards and receipts. It’s expected that the ATO will have the improved resources and data matching technology to not only check deduction claims, but issues additional audits and potential penalties.
In order to claim a work-related expense on your tax return 2019 Geelong, it must meet the following criteria:
(1) You must have the spent your own money on the purchase
(2) The expenses were not later reimbursed by your employer
(3) The expenses must be directly related to earning your income
(4) You must have all relevant records/receipts/invoices to prove it.
Home Office Expenses
If you work from home, you may be able to claim a proportion of your home office costs on your tax return. To claim any home office expenses, you must have kept a diary of the hours you worked from home for at least four weeks, as well as the receipts for any work-related purchases. These claims can include the costs of stationary, internet, phone, electricity and other work-related materials.
Self-education expenses can be claimed, provided the study is directly related to either maintaining or improving your current job and occupational skills. This means that the study must be directly related to your current work and industry. If you obtain a new qualification in a different field, the incurred expenses are not deductible.
Typical self education expenses can include course fees, textbooks, printing, stationary, laptop, study desk and any other directly related expenses. Higher education loan program (HELP) payments are not deductible.
Motor Vehicle Expenses
If you use your personal car for work-related travel, there are two ways you may be able to claim the expenses.
(1) If the annual travel claim does not exceed 5,000 kilometres, you can claim a deduction for your vehicle expenses on the cent-per kilometre basis. ATO may ask for evidence for such expenses.
(2) If your work-related travel is higher than 5,000 kilometres, you must keep a log book in order to claim a portion of your total vehicle running cost.
Rental Property Deductions
If you own a rental property that is being tenanted, you may be able to claim immediate deductions, such as:
(1) Interest on investment loan
(2) Land Tax, Council rate, water charges and body corporate fees
(3) Insurance, repairs & maintenance
(4) Gardening and pest control, advertising or any other related expenses
(5) Owners can also claim allowable depreciation on building and other assets.
Don’t leave your tax return 2019 to the last minute! Book in early and claim your best possible tax refund.
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