The end of the financial year is nearly upon us. Tax agent Ian Maloney offers first-rate advice on what to start considering now.
Work related expenses can be many and varied but here are some to get you thinking.
- Mobile phone accounts, look at a monthly bill or two and work out the work relate outbound calls as a percentage of the total.
- Laptops and iPads, again you need to supply the work related percentage.
- Tools of trade, Union fees, Professional Associations are self-explanatory.
- Uniforms (with logo) and protective clothing. For supplied clothing, you can claim laundry expenses.
- Home, light and power. If you work from home keep a track of the number of hours spent on this activity.
- Self-education courses relevant to your current employment. You cannot claim the cost of courses for a future career.
- Income protection Insurance policy fees are claimable because any claims made against the policy form part of your taxable income.
- Travel - Could be as simple as the cost of travelling from one job to the next. You could be required to provide a vehicle for your job whether as a real estate salesperson or tradesperson.
- Cost of managing your tax affairs are claimable but you can also claim the cost of travelling to and from your accountant.
Some of these expenses can be pre-paid so you ‘accelerate ‘ your claim for 2016.
Some general do’s and don’ts are as follows;
- DO start gathering documentation now.
- DO include all income from all jobs. A separate Pay As You Go withholding summary should be supplied by each employer.
- DO include as income all interest, share dividends and managed investment funds.
- DO include Centrelink benefi ts, except for family part ‘A’ or ‘ B’, as income. Centrelink do not issue statements of benefits so you will need to use your MYGOV account.
- DO NOT include a claim for expenses if you can’t prove it.
- DO NOT prepay any expenses beyond 12 months.
- DO NOT buy something just because it is tax deductible; buy it if you really need it.
- DO NOT be late lodging your tax return.
666c Pittwater Rd Brookvale
Ph: (02) 9939 4004
Ian Maloney FIPA. Registered Tax Agent, Public Accountant & SMSF Auditor.
RTA: 47149 007.
SMSF Auditor Number: 100 019 378. Liability limited by a Scheme approved
under Professional Standards Legislation