Completing tax returns for clients is not all we do. We aim to educate our clients to become tax effective in order secure their financial future. We aim to work within the guidelines set out by the ATO to maximise returns for our clients. In this section, there will be some useful tax tips and information that clients can read to ensure they are doing what they can to be tax-effective.
What you can claim
What you can claim as a work-related expense differs between jobs. Many people have misconceptions about what they can claim for some unknown reason.
To assist you in preparing your receipts for tax time, Taxpayers Australia have provided a list of common deductions for specific industries/workers. This list includes common professions such as Hairdressers, Cleaners, Flight Attendants, Hospitality workers, and people employed in the Building and Construction Industry.
How much Tax do I have to pay?
So often people are confused as to how much tax they have to pay. They think that if they creep into the next tax bracket they will be punished with extra taxes.
To try and simplify things, and dispose of this common misconception, we have created a breif summary showing the progressive income tax thresholds, a brief explanation of common tax levies such as the medicare levy and have included some examples to further your understanding.
Home office expenses
Often people ask what they can claim if they are working from home. Firstly, it needs to be determined whether home is a place of business, or you are simply performing work from home. If it is the latter, you are not entitled to claim occupancy expenses such as mortgage interest, rent and building insurance.
However, running expenses such as heating, cooling, electricity, and furniture depreciation may be claimed. The tax office has implemented a simple 34cents per hour claim for home office expenses. Computer equipment including depreciation, telephone and internet are other expenses that may be claimed. However, record keeping is required. Click below for more information or to access the home office expenses calculator.