If you are still preparing to file your returns, you might want to check out every deductible expense in order to optimize your tax return.
Certain deductions are quite obvious, and you might know about it already, but not all of them are. The following tax deductions are often missed, and it could increase your refund:
• Work-from-Home Office Supplies
If you’re working from home and purchasing supplies such as pens, paper, or other office materials, you can generally deduct these costs. To qualify, ensure that these supplies are used exclusively for your business activities. It’s helpful to keep detailed records and receipts to substantiate these expenses and consider tracking the portion of supplies used specifically for business versus personal use.
• Rental Property Costs
Property owners often remember to deduct mortgage interest, but there are several other expenses related to rental properties that might be overlooked. Be sure to claim deductions for garden maintenance, lawn mowing, bank fees, pest control, security patrols, and bookkeeping or secretarial services. You can also deduct repairs and maintenance costs, cleaning expenses at the end of a lease, and letting agent fees, including advertising costs.
Additionally, consider capital works deductions for depreciation on the building, and consult a quantity surveyor to identify more opportunities, such as deductions for items like pools and fences.
Performance-Related Equipment
If you get taxable income by performing as a musician, dancer, magician or another type of performer there are many unique deductions you may be eligible for. The range of claimable expenses is diverse.
You can also deduct costs for acting and dance classes, musical instruments, and magic tricks supplies. If your livelihood relies on the stage or screen, you’ll find numerous opportunities to claim unusual and intriguing expenses related to your craft.
• Work related clothing/accessories
Should your job require you to be exposed to prolonged outside labour, you may be eligible to deduct sunglasses from your taxes. These products have no expenditure cap, but if they cost more than $300, the ATO anticipates that they will be used for more than a year, so you should deduct the cost over time rather than taking an immediate deduction. Another item you could claim is handbag purchase, though the regulations are more complicated for them. The handbag must be predominantly utilized for work-related activities, such as carrying a laptop or documents, in order for it to be deductible. A more understated bag or a work briefcase, satchel, or backpack used only for work may be eligible for a deduction, but a high-end designer bag might not.
• Professional Memberships and Subscriptions
Membership fees for professional associations and trade unions are deductible. This also applies to subscriptions to trade magazines, financial publications, and, in some cases, gym memberships for those whose roles require exceptional fitness, such as athletes or certain military personnel.
• Business related dogs
While pets aren’t deductible, if your business uses a guard dog for security or a working dog on a farm, these expenses could be deductible. The dog would be treated as a business asset, potentially qualifying for an instant asset write-off.
• Work related social events
Generally, you can’t claim deductions for personal social outings. However, if attending an event is necessary for your job—such as a journalist covering a story—you may be able to claim those expenses.
• Charitable contributions
This is quite a known one, but you can optimize it. If you make a charitable donation to a Deductible Gift Recipient (DGR) and you have the appropriate paperwork, like a receipt, you can deduct the amount off your taxes. The majority of well-known charities are DGRs. You can deduct up to $10 in total for minor cash gifts, without a receipt, if you made many donations totaling $2 or more to bucket collections run by a DGR, such as those for disaster assistance. However, as contributions to private causes like GoFundMe campaigns are normally not deductible, make sure your payments are made to a registered DGR if you intend to claim it.
• Income protection insurance
Premiums for income protection insurance are deductible, but this does not include life, critical care, or trauma insurance. Policies paid through superannuation contributions are also not deductible.
• Tax-related costs
Fees paid to a tax professional, travel expenses to see your tax agent, and costs for tax advice throughout the year are deductible.
Knowing all your deduction options can make a big impact on your tax return. Being aware of what you can claim is crucial, whether it’s for regular job expenses or more specialized purchases.
Our tax experts are ready to help you maximize your refund. Contact us now to start and ensure a fast return!
