End of Financial Year Checklist – make sure you’re maximising your tax deductions!
1. Work-Related Expenses:
Vehicle and Travel Expenses: There’s plenty of km’s when you have to drive from Caloundra to Gympie or Sunshine Coast to Brisbane! So, if you use your own car for work-related travel, you can claim a deduction for the costs incurred. This includes fuel, repairs, maintenance, insurance, and depreciation.
Uniforms, Protective Clothing, and Laundry: Expenses related to uniforms, protective clothing, and laundering such items can be claimed if they are necessary for your job and not provided by your employer.
Tools and Equipment: You can claim deductions for tools and equipment purchased for work purposes, provided they are not reimbursed by your employer.
2. Self-Education Expenses:
You may be able to claim deductions for self-education expenses related to courses, seminars, workshops, and conferences that are directly related to your current employment.
3. Home Office Expenses:
If you work from home, you can claim deductions for a portion of your home internet, phone expenses, electricity, and other running costs related to your home office.
4. Investment Expenses:
Deductions may be available for expenses related to managing your investments, such as financial advisor fees, investment loan interest, and investment property management costs.
5. Charitable Donations:
Donations made to registered charities are generally tax-deductible.
6. Medical Expenses:
You can claim deductions for medical expenses not covered by Medicare or private health insurance, including doctor’s fees, prescription medicines, and medical treatments.
7. Income Protection Insurance Premiums:
Premiums paid for income protection insurance may be tax-deductible. Note: you can also pay your annual income protection premiums in advance thus claiming the entire amount as a deduction immediately – you may also be able to get a lower premium by paying annually rather than monthly.
8. Superannuation Contributions:
Additional superannuation contributions made before the end of the financial year may be tax-deductible, subject to certain limits and conditions. This is where you really need advice from your Sunshine Coast Financial Advisor, Mike Beal! The complexity around personal contributions, concessional contributions, catch up concessional contributions etc. mean you’re best off to seek professional advice.
9. Rental Property Expenses:
If you own rental properties, you can claim deductions for expenses such as interest on investment loans, property management fees, repairs, and maintenance.
10. Other Deductions:
Other miscellaneous deductions may include professional association fees, subscriptions to work-related publications, and union fees.
Remember, to claim a deduction, you must have incurred the expense in the relevant financial year, and it must be directly related to earning your income. Additionally, you’ll need to keep accurate records to substantiate your claims in case of an audit. It’s always wise to seek professional advice if you’re unsure about what you can claim.