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 or related to your work as an employee – not for private use – which you haven’t been reimbursed for.
- 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 documentary evidence to prove it e.g. receipts, invoices.
2. Instant asset write off (previously Temporary Full Expensing)
As part of the 2024–25 Budget, the government announced it will extend the $20,000 instant asset write-off by a further 12 months until 30 June 2025. Small businesses (aggregated turnover less than $10m), will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2025. The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write off multiple assets.
The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023External Link containing the Small Business Support – $20,000 instant asset write-off measure for the 2023–24 income year is currently before Parliament.
3. Go through your calendar
Check through your diary (and emails) 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. The ATO offers myDeductions – a free to record-keeping tool in the ATO app that makes it easier to keep records in one place.
5. Prepay your PAA membership (or other business bills and expenses)
Claiming a tax deduction this year for expenses which wholly or partly relate to next year helps you reclaim them earlier.
6. Remember these often overlooked deductions
- Self-Education, PDPs and conferences/seminars:
You can claim a deduction for the cost of attending the PAA Conference, seminars, or other training courses to maintain or increase the knowledge, capabilities or skills you need to earn your income in your current employment.
You can claim:
-
- fares to attend the venue where the seminar, conference or training course is held (unless it is held at your normal workplace)
- registration costs
- accommodation and meals, but only if you need to travel and stay away from home overnight to attend the event.
- You could even claim a conference Cocktail Party – while it is a private component of the event, it’s a reception for delegates so it is incidental to the event and therefore eligible as a deduction.
- Materials necessary to complete your learning (e.g. reference books)
- 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. - 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 work calls). - Donations to charity:
If you have tax-deductible receipts you can claim donations made to deductible gift recipients. - Voluntary contributions to your superannuation
Boost your super by adding your own personal contributions directly to your super fund. Contributions you claim a tax deduction for are concessional contributions and are effectively from your pre-tax income (capped at $27,500).
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.
Useful ATO links:
Information on Completing your Return
Income, Deductions, Offsets and Records
Updated June 2024.
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