7 Valuable Tax Time Tips

With the end of the financial year fast approaching, we’ve gathered a list of tips and advice to help you at tax time.

1. The three Golden Rules (know what you can claim)
Apply these golden rules when claiming business expenses to help get it right:

  • The expense must have been for your business – not for private use.
  • If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.
  • You must have a record to prove it.

2. Instant asset write off
In April 2019 the instant asset write-off threshold was increased to $30,000 and extended to 30 June 2020. Note that the item must be first used or installed within the tax year you claim it.

3. Go through your calendar
Check through your diary to prompt you for any spending you might have made for tax deductible events, meetings or trips for work.

4. Save your receipts in the cloud
Immediately snap a photo of every business receipt with your phone and save it to the cloud so you never lose another paper tax receipt.

5. Prepay your PAA membership (or other bills and expenses)
Claiming a tax deduction this year for expenses which wholly or partly relate to next year helps you reclaim them earlier, and you’ll also receive a higher refund in the current year.

6. Remember these often overlooked deductions

Industry subscriptions:
Claim your PAA membership fee! You can also claim for publications and products that are relevant to your profession, including magazines, subscription TV and journals.

Self-Education, PDPs and conferences/seminars:
As per ATO guidelines, you can claim the cost of attending seminars, conferences or education workshops that are sufficiently connected to your work activities.

Personal mobile:
If you are expected to take and make work/business calls on your own phone you can claim a proportion of your mobile phone bill (you would need to keep a journal to record the number and duration of calls).

Donations to charity:
If you have tax-deductible receipts you can claim donations made to deductible gift recipients.

 

And finally….

7. Get Affordable Advice from a registered Tax Agent
Although it is an expense, it’s also tax deductible and their skill and experience will potentially save you more than you pay them.

 

Please bear in mind, this information is general only and does not constitute professional advice. Get in touch with the ATO or a taxation professional to find how this information applies to your own unique circumstances.