Tax Time: Make sure you claim all you are entitled to on your tax return

June 30^th, the end of the tax year, is fast approaching, which means it’s almost time to lodge your tax return.

To maximise your tax savings, you need to make sure you’re aware of all of the deductions you’re entitled to and that you’ve got all the documents you need to make your claims. That way, you should receive the refunds back from the ATO that you are due.

The general rule is that you can claim a tax deduction for most expenses from carrying on your business, as long as they are directly related to earning your assessable income.

Deductions you can claim

There are a whole host of eligible deductions which relate to different occupations and industries, which your accountant will be aware of.

These can be the more obvious things, such as motor vehicle expenses, home-office costs, business travel expenses, repairs, maintenance and replacement expenses, to the more unusual, such as communal recreation items such as games consoles or tv sets, works of art for businesses, professional performance equipment and working guard/farm dog expenses!  

There are three golden rules set out by the ATO for what they accept as a valid business deduction:

1. The expense must have been for business purposes, not for private use.
2. If the expense is for a mix of business and private use, you can only claim the portion that is used for business use.
3. You must have records to prove it.

Record keeping and good advice

The key to ensuring you can claim the tax deductions you are entitled to, is to keep all the records that you need including invoices, receipts and bank statements and to seek expert advice, according to your specific situation.

You may be challenged by the ATO if you are claiming for something out of the ordinary, but this depends on the industry in which you work, and whether the items are aligned with the way that you earn your assessable income. Make sure you’ve consulted an accountant if you are in doubt as to what you can claim.

Contact TaxAssist Accountants

If you need any help or advice with the financial aspects of running your business, please contact us today on 02 9608 3707 or complete our contact form. We’ll be glad to help.

Date published 9 Jun 2022 | Last updated 9 Jul 2022

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.