7 Tax Deductions That Could Save You Money This EOFY wink

1. Update your home office.

“Although many workers work from home at least one or two days a week, many do not know to what extent they can claim deductions for expenses incurred to operate their home office. There are two methods: 1) the method of revised flat rate of 67 cents per hour or 2) the actual cost method,” says Dr. Raftery. Under the actual cost method, you can claim the costs you incur in running your home office, including actual deductions for the work-related part of your home phone, internet, stationery, printers, equipment computers and consumables. You can also claim electricity, gas and home furniture depreciation, including improvements made to your home office.

2. Courses and training related to work.

“If you have participated in any course or training related to your work or business, you can claim the cost of attending as a tax deduction. This includes conferences, workshops, seminars and other professional development activities that have a direct relationship to your current job,” reports Dr. Raftery.

3.Make extra super contributions with a recharge.

Regardless of your income level, superannuation is a great tax-reduction tool. Contribute up to $27,500 per financial year into super and you’ll be taxed at 15 per cent, which is significantly less than the marginal tax rate. Also, if your super balance was below $500,000 on 1 July 2023, you can carry forward any unused amount of your concessional annual allowance (up to $25,000 in years 2018/19, 2019/20, 2020/21 and up to $27,500). from the years 2021/22 and 2022/23) and make a higher contribution this year. If you are on a low or middle income (less than $58,445) and make an after-tax super contribution of up to $1,000, you may also be eligible for a 50% co-contribution from the government.

4. Register and claim your work from home expenses.

As hybrid ways of working remain popular, this is an element of claim that will continue to be high in 2023/24. The ATO flat rate method allowance is 67p per hour and you must keep a record of your actual time at home. This method will likely result in fewer deductions compared to the work-related portion of the home phone, Internet, stationery, printers, computer equipment, electricity, and consumables under the actual cost method.

5. Lighting and photography equipment for business activities.

According to Dr. Raftery, with an increasing reliance on digital software tools such as Zoom and Microsoft Teams as part of everyday working life, having poor quality equipment is now seen as unprofessional given technological advances and the affordability of devices.

“Smart business professionals are investing in lighting and other photo equipment to improve their look and sound during online meetings. There is also an increase in workers and businesses claiming tax deductions for online meeting and marketing equipment such as LED lights, microphones, headsets, desktop speakers and second monitors (including monitor arms),” says the Dr. Raftery.

6. Other work-related expenses.

Dr Raftery says there are a number of work-related expenses that may qualify as tax deductible, depending on your job and your individual situation.

“Often, these expenses are not recognized, as they are not considered important. Examples include union dues, subscriptions for work purposes and food purchased during overtime. It’s important to note that if you pay your fees or subscriptions in advance for the next tax year before 30 June 2024, you can claim the deduction this year,” suggests Dr Raftery.

7. Fiscal professionals.

Did you know you could get a tax deduction if you pay a tax professional to complete your previous year’s return?

“It is always a good idea to seek appropriate advice from a registered tax professional when organizing your affairs. Make sure you claim any tax accounting or advice from the previous year to maximize your EOFY benefits,” advises Dr Raftery.

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Disclaimer: This information is of a general nature only and does not constitute professional advice. You should seek professional advice in relation to your particular circumstances before acting.

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