What is an annuity?13 November 2020
What to know before you apply for a business loan20 November 2020
There are different types of deductions that individuals can claim to reduce their taxable income.
In order to claim work-related tax deductions, the expenses must have to meet three criteria. Firstly, all the expenses have to be paid by the individual, without being reimbursed by the employer. Secondly, they must be directly related to earning your income. Finally, there must be a record of the expenses (i.e. a receipt).
There are various different expenses that can fall under this category.
- Vehicle and travel expenses: Commuting between different locations but not usual travel between home and work
- Clothing, laundry, and dry-cleaning expenses: Cost of work uniform which is distinct and unique (i.e. has a specific logo)
- Self-education expenses: Any courses or study associated with employees current role, such as textbooks
- Tools and other equipment: If you purchase tools or equipment, then a deduction for some or all the cost could be claimed
The cost of earning interest, dividends, or other investment income can also be claimed. This can include:
- Interest charged on money borrowed to invest
- Investment property ex[enses
- Investing magazines and subscriptions
- The money you paid for investment advice
Home office expenses
A portion of the costs associated with installing your home office can be deducted. The process is now much easier due to COVID-19. It allows people to claim 80 cents per hour for all running expenses. Additionally, people living in the same house can claim this individually, there is no need for a dedicated office.
There are also other deductions available. These include:
- Union fees
- The cost of managing your tax affairs
- Income protection insurance (If not through super)
- Personal super contributions
- Gifts and donations to organisations that are endorsed by the ATO as deductible gift recipients