Personal Tax Deductions

Tax deductions are one of the ways you can reduce your taxable income, and, ultimately, pay less tax!!!

Here is where you will information about various personal tax deductions.

Getting deductions for clothing and laundry expenses right

The ATO allows certain taxpayers to claim a deduction for the cost of buying and cleaning occupation-specific clothing, items of protective wear and for certain unique, and usually distinctive, uniforms. To claim a deduction it is generally expected that you will be able to provide evidence that you purchased the clothing concerned, and will have […]

Home office deductions: What substantiation will the ATO accept?

Home office expense claims are subject to the same general substantiation requirements as other deductions – that is, it is a requirement that records should be kept for at least five years. But in practice, full compliance with the substantiation rules may be difficult. It may be simple to keep a receipt for a printer […]

Extending the festive cheer (in a tax efficient way)

The festive season is here again, and as with other years it is always brimming with the spirit of giving. The list of practical ways in which Australians spread goodwill is as endless as a Christmas wreath. The ATO also gets into the spirit of the season, but of course feels required to set some […]

Travel to a workplace: What’s in, what’s out

A recurrent topic of conversation and enquiry when it comes to possible tax deductions is when taxpayers travel to a work location, and the eligibility or otherwise of certain claims in regard to that travel. Work-related travel is a hot focus area of the ATO as taxpayers can often get claims wrong. While trips between […]

What types of legal expenses are allowable as tax deductions?

When a legal expense is incurred in relation to the operation of a business to produce assessable income, it is generally allowable as a deduction. Exceptions are when the legal fee is capital, domestic or private in nature, if it is specifically excluded by another section of income tax legislation, or is incurred in earning […]

When can you claim a deduction for home to work travel?

As a general rule, travel from your home to your workplace is not allowed as a deduction because it constitutes a “private expense”. There are however circumstances when you may be entitled to claim some of these travel expenses, or even travel costs to an alternative workplace. But it is a minefield that needs to […]

Work-related expenses in the firing line

With Tax Time 2015 in full swing, the Tax Office has flagged that it will pay particular attention to work-related expenses. It says it’s an area that adds up to about $19.5 billion in tax deductions each year. In previous years, the Tax Office has tended to focus on work-related claims made by particular professions, […]

Working from home — the tax implications

In general terms, the Tax Office takes the view that expenditure associated with a person’s place of residence is more likely to be of a private nature. However if you produce assessable income at home, or some of it, and you incur expenses from using that home as your “office” or “workshop”, you will generally […]

The deductibility of self-education expenses

To get ahead of the game and stay there, you need to flex your grey matter as often as possible. Self-education is one way of ensuring you keep up to speed with developments and methods relating to either your business or your field of employment. To help encourage employers and employees alike to undertake educational […]

Allowance for travel (and some common mistakes)

The idea of making allowances to cover the cost of necessary travel by employees is not a new area of tax, but it is becoming increasingly significant, especially with today’s fast-moving and ever more global economy. Businesses are increasingly moving staff around to achieve expansion and build greater ties across greater distances. It can however […]