We all want to pay less tax, but every year, many people pay hundreds – sometimes thousands – more than they have to. Why? Because they aren’t aware of all the deductions that they are eligible to claim.
The best way to get the most out of your tax return is to enlist the help of a trusted tax specialist and leave it up to them. That way, you can kick back and relax knowing that they’re working hard to get a bigger refund for you.
But if you’re curious, here are five often forgotten tax deductions to be aware of.
1. Tax agent fees
Did a registered tax agent lodge your tax return on your behalf last financial year? If so, the fee you paid is tax-deductible. It’s incredible how many people forget this quick, easy, money-saving deduction.
2. Income protection insurance
If you pay for income protection insurance that’s independent from your superannuation, you can claim the premium cost on your tax return.
3. Membership fees and licenses
Many professionals are required to hold specific memberships or licenses to practice. Others choose to join unions and industry bodies. Any fee (annual or once-off) you pay to secure a license, certificate, or professional membership is tax-deductible.
4. Car expenses
Do you use your car for work-related travel, not including driving to and from work? If so, you may be eligible to claim some maintenance and fuel costs. Be sure to keep track of work-related car use, which might include travelling to attend a meeting outside of your usual workplace or delivering goods on behalf of your boss.
5. Working from home expenses
Whether your workplace has adopted work-from-home arrangements due to COVID-19, or you’ve been working out of your home office for years, you may be missing out on some tax deductions. Alternatively you may be claiming things are not eligible, and if so the ATO will reject them or you’ll be audited. Due to the massive increase in work-from-home claims this year, the ATO will be scrutinising this area more than ever, and coming down hard on people who they think are trying to rort the system.
It really is wise to get a tax accountant to help you with your annual return if you think you start claiming work from home expenses.
Stop paying more tax than you need to
Gearing up to lodge your tax return? Why not get us to do it for you.
Our team of tax specialists get a real kick out of maximising our clients’ tax returns. We leave no stone unturned, so you can rest easy you aren’t paying one more dollar in tax than you need to.