Maximize your tax return- 10 things to claim in tax return

How to return the maximum amount from the tax return?

What are the things that you can claim in tax return?

Tax time for the year 2020/2021 is already here and accountants are busy grabbing the opportunity for the year. Income tax is one of the most significant factors of revenue in the tax system to source government funds. Income tax is applied to all the individual’s income of all the forms. The tax system of Australia is progressive which means the more you earn the more tax you have to pay. Here we have listed 10 things that you can claim to deduct your tax and maximize your tax return.

1. Travel and transport expanses

You can claim transport and travel expenses you paid when you travel in the course of performing your work duties. It could be driving you car, motercycle, van etc. If there is no buplic transport and you had to catch a cab or ride share like uber, ola, didi etc, you can claim it. You can claim even for the publich transport which you took for your work according to ATO.

2. Maximize your tax return with clothes and loundary

If you fall into one of the following categories, you can claim a deduction for the cost of buying, renting, or repairing clothing (and footwear): Occupational-specific clothing, Protective clothing, Mandatory uniforms and Non mandatory clothing that the employer registers with industry. You may have to show that proof or keep the receipt of the purchase. You can even claim the amount that cost you to clean the clothes. But, you can not claim if your employer pays you for your clothes and loundry. You shold check your payslip befor applying for it.

3. Tools and equipment

You can apply for deductions for part or all of the cost of tools, equipment, and other assets purchased and used to help earn income. If the cost of the tool or equipment is $ 300 or less, you can claim the full deduction in the year of purchase. Some of the examples of tools and equipments are: laptop, calculator, chef knife, desk, chair, safety equipments etc. You can also claim the cost of tool and equipment repair and insurance costs, as well as any interest on funds borrowed for the purchase of these items.

4. Tax managing cost

You can claim deductions for expenses incurred in managing your own tax affairs, such as expenses presented through a registered agent. In simple, you can claim the cost you paid to the tax agent to return your tax. If you have spent money to buy tax related materials, obtained tax advice from tax advisor, puchased any tax software then you can also calim for that. If you are travelling to meet the registered tax advisor then you can also deduct the travel cost from your tax. This is the sure shot topic to maximize the tax return.

Also check: ATO to investigate International students and visa holders

5. Self education deduction to maximize your tax return

If your education is related to your current work activities, or if you receive a taxable scholarship, you can claim deductions for study and self-study expenses. The course must be sufficiently connected to your current work activities as an employee, and maintain or enhance the specific skills or knowledge you require in your current work activities. Also, if the course help to increase the income in your corrent employment then you can claim it. If you are thinking to apply for you self learning deduction, you can calculate it HERE.

6. Income protection insurance

Unless your pension fund pays the premiums, you can claim the cost of the premiums you paid for loss of income insurance. You must include on your tax return all payments you receive under the income protection policy. It will help to maximize your tax return. If the policy provides income and capital benefits, only the premiums related to income benefits can be deducted.

7. Superannuation Contribution

You can request the deduction of your personal pension (super) contributions to a compatible pension or retirement savings account (RSA). If your income comes from: Wages and salaries, Individual companies (for example, independent contractors or freelancers), Investments (including interest, dividends, rentals and capital gains), Pensions or government allowances, Companies or trusts, or a foreign sourses. If you request the deduction of your personal contributions to the pension, the contributions will be taxed 15% in the fund.

8. Donations and Gifts

You can only claim tax deductions for gifts or donations to organizations with deductible gift recipient (DGR) status. Deductible gift recipients (DGR) are organizations or funds that have registered to receive tax-deductible gifts. Not all charities are DGR. To maximize your tax return, it must actually be a gift or donation, that is, you voluntarily transfer money or property without receiving or expecting to receive any material benefits or benefits in return. Material benefits are items with monetary value. To claim a deduction, you must have a record of your donation, such as a receipt. There are different kind of donations in Australia which you can claim directly. You can check those in ATO website.

9. ATO interest charge to increase your tax return

You can claim to deduct certain interest rates charged by the ATO. ATO is permitted by law to charge interest in specific situations, such as: late tax payments and penalties, increases in taxes liability due to changes in your valuation, increases in other taxes payable, such as goods and services taxes.

10. Working from Home

Due to COVID-19, officess and business has been operating from the home. If you are a work-from-home employee, you can claim a deduction for your work-related expenses. To maximize your tax return from working from home expenses, you must work from home to accomplish your business duties, not just to perform minimal tasks, such as occasionally checking emails or receiving calls. You may need to show the record of the expanses while working from the home. Check here: Expenses you can and can’t claim while working from home.