You’re probably well aware you can claim a tax deduction for general work-related expenses. But did you know you may be able to claim if:
1. You take a course or study. You may be able to claim a portion of self-education expenses if it’s related to your ability to earn an income.
2. You travel to inspect your investment property. You may be able to claim for expenses like pest control fees, body corporate, rates, utility bills, advertising and marketing costs.
3. You belong to a union. You may be able to claim your union fees as a deduction.
4. You wear a uniform for work. You may be able to claim for buying and cleaning a uniform that you need to wear for work.
5. You work from home. You may be able to claim for running costs such as heating, cooling, lighting and cleaning, and even interest on any loans for work equipment, like a home computer. But you must keep detailed records—check out the ATO’s guide to home office expenses.
Working out your tax deductions can be complex. Your tax accountant can help you work out what you can and cannot claim.
Five ways to boost your super at tax time
There are plenty of ways to benefit from super’s favourable tax treatment, regardless of how much you earn and how old you are.
1. You can claim up to $500 in government co-contributions if you’re a low to middle income earner and you make after-tax contributions of up to $1,000 to your super.
2. You can receive a tax offset of up to $540 if your spouse is a low income earner and you contribute up to $3,000 in after-tax contributions towards their super.
3. You can contribute up to $30,000 in before-tax contributions to your super at the ‘concessional’ tax rate of 15%i —or $35,000 if you’re aged 50 or over.
4. You can contribute up to $180,000 a year (or up to $540,000 before 1 July 2017 if you’re eligible to use the ‘bring-forward’ rules) in after tax-contributions. Since this is from your after-tax income the full contribution reaches your super account, and no tax is deducted when the contribution reaches your super fund.
5. You can start a transition to retirement strategy once you’ve reached your super preservation age (the age at which you can access your super)—this can allow you to draw up to 10% of your super as a pension.
So, as the end of the financial year approaches, now is the time to ensure you are fully aware of all the tax deductions you can claim, as well as taking advantage of investing in super, before major changes take affect.
Contact us before 1 July so we can help with strategies to make your money work for you.
i Or 30% tax if you earn more than $300,000 pa in 2016-17.
Copyright 2017 Advant Group Pty Ltd. All rights reserved.
The advice contained in this article is general in nature and is not tailored to your specific needs or circumstances. Before taking action it is important you consult a financial adviser or other professional, we can help. All figures and legislative references are current as of 21 June 2017.