INDIVIDUAL CLAIMS WORTH CONSIDERING THIS TAX SEASON

WORK-RELATED CLAIMS BY INDIVIDUALS

The following outlines common types of deductible expenses claimed by individual taxpayers, such as employees and rental property owners, plus some strategies that can be adopted to increase deductions for the 2017/18 income year.

1. Depreciable plant, etc. costing $300 or less

Salary and wage earners and rental property owners will generally be entitled to an immediate deduction if certain income-producing assets costing $300 or less are purchased before 30 June 2018.

Some purchases you may consider include:

books and trade journals;
briefcases/luggage or suitcases (if required to travel for work);
electronic tablets;
computer software and other subscriptions;
tools of trade.

2. Clothing expenses

Purchase or pay for work-related clothing expenses prior to the end of the income year, such as:

compulsory (or non-compulsory and registered) uniforms, and occupation specific and protective clothing;
other expenses associated with such work-related clothing, such as dry cleaning, laundry and repair expenses.

3. Self education expenses

Consider prepaying the following self education items before the end of the income year:

course fees (but not HECS-HELP fees), student union fees, and tutorial fees;
interest on borrowings used to pay for any deductible self education expenses.

Also bring forward purchases of stationery and text books (i.e., those which are not required to be depreciated).

4. Other work-related expenses

Employees can prepay any of the following expenses prior to 30 June 2018:

union fees;
subscriptions to trade, professional or business associations; magazine and newspaper subscriptions;
seminars and conferences;
income protection insurance (excluding death and total/permanent disability).

Please note:

When prepaying any of the expenses above before 30 June 2018, ensure that any services being paid for are to be provided within a 12 month period that ends before 30 June 2019. If the service period exceeds 12 months, the deductions must generally be claimed over the period of the prepayment.

We have listed a few other deductions you may be entitled to below:

Work-related:

interest on loans to purchase equipment or income-earning investments;
motor vehicle expenses (business/work related);
home office running expenses:
cleaning
cooling and heating
depreciation of office furniture
lighting
telephone and internet;
conventions, conferences and seminars;
depreciation of library, tools, business equipment (incl. portion of home computer);
sun protection items;
telephone expenses (business or work);
tools of trade
award transport allowance claims;
overtime meal allowances;
bridge/road tolls (travelling on business);
car parking (when travelling on business);

Investments:

interest and dividend deductions:
account keeping fees
ongoing management fees
interest on borrowings to acquire shares
advice relating to changing investments (but not setting them up);

Rental Properties:

rental property expenses – including (but not limited to):
advertising expenses
council/water/land rates
depreciation on rental property “assets” (useful life exceeding 12 months)
insurance premiums
interest paid on loans
legal expenses
real estate agent management fees
genuine repairs and maintenance
telephone expenses
travelling to inspect the rental property;

Other deductions:

gifts or donations to a “deductible gift recipient”;
personal superannuation contributions by taxpayers earning less than 10% of their taxable income from sources of employment;
tax agent fees.