With June 30 approaching, now is a great time to get yourself set for tax time.
Tips for individuals
At tax time, you may be able to claim the following:
Work deductions: This includes work-related telephone, mobile phone, internet use, computer repairs, union fees and professional subscriptions.
Motor vehicle deductions: If you travel less than 5,000 km per year for work (not including to and from work), you can claim for vehicle expenses on a cents-per-km basis.* If you exceed 5,000 km per year, you will need to use the log book method for keeping track of your vehicle expenses.
Self-education expenses: If your study relates to either maintaining or improving your current job skills or is likely to increase your income in your current job, you may be able to claim deductions for course fees, textbooks, stationery, student union fees and depreciation on things like computers.
Self-employed super: If you’re self-employed, you can claim super contributions to a complying super fund up to age 75. Deductions apply only if less than 10% of your total assessable income, reportable fringe benefits or employer super contributions are for your employment as an employee.
* Based on 2016 tax year. The rules for work-related vehicle travel can change annually so refer to the Australian Taxation Office (ATO) website or speak with your tax agent for more information.
Source: Compiled from Certified Practising Accountants (CPA) Australia
ATO Case Study
Make sure you can support your claims
A motor dealer employee claimed over $11,000 for his car expenses, $3,000 for clothing and nearly $24,000 for other work-related expenses. When asked by the ATO to provide evidence, it became clear that the employee had overstated his car claims and that many of his receipts were actually for personal expenses. As a result, the ATO required the employee to pay a tax shortfall of over $8,000 plus penalties.
Source: Australian Taxation Office, ato.gov.au, 24 October 2016