Deductions Allowed in Income Tax Return Lodgement

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The ATO is centred around helping citizens get their deductions right, but at the same time they’re watchful for warnings that distinguish individuals who are doing the wrong thing. Here’s a list of deductions you usually can’t claim on your tax return.

  • Travel between home and work – which is generally considered private travel.
  • Car expenses – unless you are transporting bulky tools or equipment
  • Car expenses – that have been salary sacrificed.
  • Meal expenses – unless you were required to work away from home overnight.
  • Private travel – including any personal travel portion of work-related travel.
  • Everyday clothes – you bought to wear to work
  • The cost of laundering eligible work clothes – unless you can show how you calculated the cost.
  • Higher Education Loan Program – contributions charged through the HELP scheme.
  • Self-education expenses – where there is no direct connection to your current employment.
  • Phone or internet expenses – that relate to private use.
  • Tools and equipment that cost more than $300 – however, you can depreciate the cost over a number of years.

For more information on Etax, myTax ATO, myGov and online tax return, please contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

 

Deduction for Business Income

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If you are running Business like courier, UBER, retail shop, real estate agency or any other small business – there are some deductions which can be claimed.

These are rent paid, Interest on Loans, cleaning, salary, superannuation paid, accountant fees, contract payments, depreciation, marketing expenses, legal fees, subscriptions, car fuel , travel expenses and any other expense which is incurred to produce business income.

For more information on Etax, myTax ATO, myGov and online tax return, please contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Claiming Mobile & Internet Expenses in Tax 2017

by DedcutionsTax TopicsUncategorized

Average Australian spends around $600 to $2000 on Mobile & Internet expenses every year. This includes mobile instrument costs, call charges, data charges & home phone rental.

You can claim a deduction for work-related mobile/internet/home phone  expenses if you use incur these expenses in the course of performing your job as an employee.

You may have to calculate a percentage of work usage. Also remember that you need to keep records for a 4-week representative period in each income year to claim a deduction of more than $50. These records may include diary entries, including electronic records, and bills. Evidence that your employer expects you to work at home or make some work-related calls will also help you demonstrate that you are entitled to a deduction.

You can email or call us  if you need any further Clarification.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Income Deduction for Business

by DedcutionsExpensesTax TopicsUncategorized

Most income your business receives is assessable income – which means you need to state it and its focus to tax.

You can claim tax deductions for most costs you get in running your business but there are exceptions.

For example, you cannot maintain deductions for private or domestic expenses. Entertainment, fines and some other expenses are also mostly excluded.

The rules for business income and deductions vary depending on your business structure, whether you hold and sell trading stock, and the nature of your income and expenses.

You must keep correct and entire records of all your measurable income and deductions you claim. If you make false or confusing statements, ATO may:

  • decide your revenue, based on trade benchmarks and other information, and issue an amended assessment
  • apply penalties
  • Commence action.

Most income your business receives is assessable (including foreign income). Though, there are some exceptions, such as amounts you make from a hobby, or prizes that are not connected to your business.

The accounting method you use might affect which amounts you need to take in for a particular income year.

The following formula is used to work out your business income tax:

Assessable income – allowable deductions = taxable income (the amount you pay tax on).

You may be allowed for a range of concessions to help decrease your taxable income.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au