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.

Travel allowances and proper use of the exception to substantiate claims

A travel allowance is a payment made to employees to cover accommodation, food, drink or incidental expenses they incur when they travel away from their home overnight in the course of their duties. In most circumstances, when claiming other deductions, you will be expected to be able to substantiate the expense being claimed with documentary […]

Can you claim the cost of travelling to this office?

Tax time has arrived, and if you haven’t had us lodge your return yet, here is another deduction tip — should your circumstances allow. (If your return has already been lodged, then this could be a handy tip to file away for next income year.) The ATO recently issued what it calls a “tax determination” […]

Substantiation for mobile, home phone and internet costs

The ATO has issued guidance on making claims for mobile phone use as well as home phone and internet expenses, and says that if you use any of these for work purposes you should be able to claim a deduction if there are records to support claims. But the ATO points out that use for […]

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 […]

Car salary packages and the deductibility of after-tax running costs

Including a car in a salary package is a popular remuneration arrangement, and doing so as part of a salary sacrifice package will often give rise the a “novated lease”.  Costs in operating the vehicle can also be salary sacrificed.  This is typically referred to a fully novated lease. A novated lease arrangement is a […]

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 […]

Work-related travel expenses: Why are they on the ATO’s radar?

An area where we see individuals getting it wrong as employees is in relation to claiming work-related travel expenses. The absence of hard and fast rules can makes claiming travel expenses difficult as often the deductibility of such costs can be dependent on the nature of employment, the amount of time spent away from home […]