The end of June marks the end of the financial year and it’s time to contact your tax accountants and sort out your finances. You must complete a tax return for all earnings over the past financial year and your accountant can help you do this. Using an accountant is a good idea as they can help save you money. Accountants are more aware of what you can claim, so make sure that during the year you save all your receipts just in case you can claim them against your tax.
Any work related training or education you can claim the expense of these courses on your tax. You may be brushing up your skills, learning new information, gaining new skills to use updated equipment or machinery or you could be needed to undergo training for a promotion you have received at work. Make sure you keep any receipts from payments of tuition.
Travel and car
You can not claim travel expenses between home and work, but you can claim expenses against your car if you use it during the day for work related reasons. Some people have to travel between company locations during the course of their day, and people like sales representatives have to take considerable road trips. You can claim the cost of petrol, any repairs and maintenance on your car, as well as insurance costs and registration. You should get yourself a motor vehicle log book and record information, such as kilometres travelled, petrol used and the cost of having your car serviced.
Clothing and equipment
If you wear a uniform to work you can claim the expense of this at tax time. If you need to wear particular clothing for your job, such as work boots, high visibility clothing or ear protection, you can claim the cost of your clothes. Any equipment you purchase for your job can also be claimed. For example a plumber can claim any expenses against tools he may purchase throughout the financial year, a gardener can claim on any thing he buys, such as lawnmowers, or a shearer can claim the cost of his combs, cutters and shearing hand pieces. If you need to pay for dry cleaning or laundering of your uniform then you can claim for the expense of this too.
Home based businesses
If you work from home you need to be aware of the extra things you may be able to claim. Check with your accountant as you might be able to claim a portion of your household bills, such as your electricity, gas and phone bills. Any expenses relating to your business can be claimable, so keep bills relating to your mobile phone, and any receipts for anything you buy for your home office, including paper, printer ink, office furniture and internet connection.
You can save some money on your income tax if you are over thirty and you take out private health insurance. You can save up to one thousand dollars a year.