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What Can You Claim on Tax?

What Can You Claim on Tax?

A brief guide on what items are claimable on tax

13th April 2016

As tax time approaches, you are probably wondering: what can I claim back on tax?Tax time is nearing, and the questioning of what you can claim will, if not already, cross your mind. Although the process can sometimes be tricky, understanding what you can claim back can help you maximise your tax return and put your mind at ease.. This common query is important to be understood if you want as much tax back as you can get. Sometimes the process may be tricky, understanding this though, will make the process and your mind be at ease.

Tax deductions are a legitimate way of lowering your taxable income. This can be the case so long as you are permitted to do so under your relevant profession. It is important to check the specific guidelines for your relevant profession. Generally, some expenses incurred whilst at work may be tax deductible.

Unsure about how to lodge your tax effectively? Read more about how to lodge an individual tax return.

Work-Related Expenses

To properly claim work expenses you must:

  • Have personally incurred the expense without being reimbursed
  • The expense must be related to your line of work
  • Be able to evidence such expenses (e.g. in receipt form)

It is common for some to come across expenses for both work and private matters. If this is your care, you can only claim for matters of the work portion of that divide.

A common List of Work Expenses(although not exhaustive):

  • Education courses provided by professionals
  • Conferences/educational workshops
  • Tools and equipment – including protective wear
  • Union fees
  • Overtime meals

Ask Yourself; Is it Relevant to your Work?

Before jumping to all sorts of conclusions and assuming claimable items, there must be a direct and obvious relation to your line of work. To make sure loopholes aren’t taken advantage of, the Taxation Office is certainly serious in examining claimable items. For instance, if you’re trying to claim a novelty book instead of a required theoretical book this will be discounted unless it is aligned with your field of work.

Things not able to be claimed

  • Fines and penalties
  • Entertainment
  • Social activities

Claimable items enable the taxpayer to claim back legitimate purchases in which they were out of pocket for. It can work as a fair system for workers whilst not being too lenient. Tax claims work if done right. It is important for taxpayers to legitimately evidence and support their claims to ensure eligibility. The easiest and fastest way tax claims can be made online via the Australian Taxation Office (ATO).

To find out more, here is a video from the ATO about claiming work-related items. To make sure you are ready to go this financial year, save time and download the mydeductions app.

Unsure about tax claimable items? LawPath can connect you to an expert lawyer who can help you understand and advise on your tax obligations for a fixed-fee. Submit a quote request and receive up to 3 fixed-price quotes in 24 hours.

Zachary Swan

Zac is a consultant at Lawpath, Australia’s largest and fastest growing online legal platform. Since joining Lawpath, Zac has assisted 1000s of startups and small business’s with their legal needs.