As the end of the financial year approaches, tax time is looming over individuals and businesses. Understanding and utilising tax deductions can make a big difference to your financial health. At Denis Cummins Public Accountants, we help our clients find common and often overlooked tax deductions so you can get the most out of your tax savings.
Common and Overlooked Tax Deductions
Work Related Expenses
Home Office Expenses
With the rise of remote work, many Australians are entitled to claim home office expenses. This includes a portion of your internet, phone, and utility bills, as well as depreciation of office equipment and furniture.
Travel Expenses
If your job requires travel, you may be able to claim travel expenses. This includes transport, accommodation, and meal costs. Remember to keep detailed records and receipts.
Uniforms and Protective Clothing
Costs incurred for uniforms, protective clothing, and laundry can be claimed if these are specific to your job and required by your employer.
Self-Education Expenses
If you’re studying further education directly related to your current job, you can claim course fees, textbooks, and travel expenses.
Investment and Financial Deductions
Investment Property Expenses
If you’re a rental property owner, you can claim a range of expenses including interest on investment loans, property management fees, maintenance costs, and depreciation of assets.
Dividend and Interest Deductions
You can claim expenses incurred to earn dividends or interest such as management fees and interest on borrowed funds used to purchase investments.
Superannuation Contributions
Personal superannuation contributions are tax deductible so you get the double benefit of increasing your retirement savings and reducing your taxable income.
Business Related Deductions
Business Expenses
Small business owners can claim a wide range of expenses including office supplies, software, business travel, advertising, and professional memberships. Make sure you keep records to support these claims.
Depreciation of Assets
The instant asset write-off allows businesses to claim the full cost of assets up to a certain value. This can include machinery, vehicles, and office equipment.
Motor Vehicle Expenses
If you use your vehicle for business purposes, you can claim a deduction for the running costs. There are two methods to calculate this: the cents per kilometre method and the logbook method.
Other Deductions
Charitable Donations
Donations to registered charities are tax deductible. Keep receipts and check the charity is a registered organisation.
Union Fees and Subscriptions
Membership fees to professional associations or unions can be claimed if they relate to your current job.
Tax Agent Fees
The cost of hiring a tax agent to prepare and lodge your tax return is tax deductible. This includes expenses for tax advice and consultations.
Get the Most Out of Your Tax
Keep Records
Record keeping is key to getting the most out of your tax deductions. Keep receipts, invoices, and statements for all deductible expenses. Use apps or software to track and store your records throughout the year so tax time is less stressful.
Plan Ahead
Tax planning shouldn’t be left to the last minute. Review your financial situation and potential deductions with a qualified accountant regularly. Planning ahead can help you make informed decisions such as prepaying expenses or making extra super contributions before the end of the financial year.
Get Professional Help
The Australian tax system can be confusing. Engaging a professional accountant will ensure you’re not missing out on any deductions and your tax return is up to date with the latest changes. At Denis Cummins Public Accountants, we offer tax advice and services tailored to your unique circumstances.
Private Vault
In this digital age, protecting your sensitive documents is vital. Using a private vault service can store your tax records securely so they can’t be lost or stolen. This secure digital solution gives you peace of mind and easy access to your documents when you need them.
Why Denis Cummins Public Accountants?
At Denis Cummins Public Accountants, we offer a full range of services and a personal approach. Our expertise spans many areas of finance so you get the best advice and support. Here’s what we can do for you:
Taxation Services: From individual tax returns to complex business taxation, we do it all. Our knowledge of Australian tax laws means you get every deduction you’re entitled to.
Accounting Services: We do thorough accounting including GST registration, BAS preparation, financial audits, and performance analysis.
Financial Planning: Our financial planning helps you build a secure future. Whether it’s investment advice, retirement planning, or managing your superannuation, we have strategies to suit your goals.
Referral Services: Small business operators and the self-employed benefit from our specialised services. We assist with strategic planning, cash flow management, and improved reporting, ensuring your business thrives.
Get in Touch
Tax savings requires planning and professional advice. Denis Cummins Public Accountants can help you navigate the tax system and get every deduction you’re entitled to. Contact us today for tax advice. Our team will give you personalised advice to improve your financial situation.
Let Denis Cummins Public Accountants be your finance partner.