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Employee and Investors Tips

Employee & Investors Tips

Deffering Income

  • Income received in advance of services to be provided will generally not be assessable until the services are provided.
  • Taxpayers who provide professional services may consider, in consultation with their clients, rendering accounts after 30 June to defer the income.
  • A taxpayer is required to calculate the balancing adjustment amount resulting from the disposal of a depreciating asset. If the disposal of an asset will result in assessable income, you may want to consider postponing the disposal to the following income year.

Claim all work-related deductions

  • Claiming all your work-related deduction (e.g. uniforms, employment-related telephone, mobile and internet costs, subscriptions, home office expenses and union fees) entitlements may save considerable tax. In doing so check whether you have all the necessary receipts or credit card statements.
  • Where you don’t have the necessary receipts on hand you can still claim up to $300 of work-related expenses provided the claims relate to outgoings you necessarily incurred in doing your job.
  • A deduction for laundry costs is allowable where the relevant clothing is protective clothing, a compulsory uniform, an approved non-compulsory uniform or certain occupation-specific clothing. Moreover, laundry claims of up to $150 do not have to be substantiated even if your total income tax deductions exceed $300.

Deduct home office expenses

  • When part of your home has been set aside primarily or exclusively for the purpose of doing work from home costs such as heating, cooling and lighting and depreciating your office equipment or professional library may be allowable. To claim the deduction you must have typically kept a diary for at least 4 weeks of the hours you worked at home. This amount is then used to work out your total hours worked for the year and a deduction claimed at a current rate of $0.34 cents per hour. However, no deduction is available for occupancy expenses such as mortgage interest, rent, and insurance and rates unless you conduct a business from your home.

List your rental property deductions

  • Landlords can claim deductions for a range of expenses such as advertising, bank charges, body corporate fees, cleaning, council rates, electricity and gas, gardening, insurance, loan interest, land tax, lease preparation expenses, legal costs, pest control, postage and stationery, property agent fees and commissions, repairs, secretarial and bookkeeping fees, telephone charges and water rates. You may also be able to write off the cost of certain buildings, depreciating assets and borrowing costs over time.

Claim income protection insurance

  • The ATO allows you to claim income protection insurance as a work-related expense. It is insurance worth considering for anyone in the workforce as it pays a portion of your salary for a while if you’re temporarily unable to work because of sickness or injury.
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