Home Office Expense and Running Cost

You may be entitled to claim deductions for home expenses including a computer, phone or other electronic devices you are required to use for work purposes, as well as a deduction for running costs. As an employee, generally you can’t claim a deduction for occupancy expenses, including rent, mortgage interest, council rates and house insurance premiums. If you are an employee and required to use your computer, phone or other electronic device for work purposes, you may be able to claim a deduction for your costs.

If you perform some of your job from a home office, you may be entitled to a deduction for the costs you gain in running it, including:

  • for home office equipment, such as computers, printers and telephones, the cost (for items costing up to $300) or decline in value (for items costing $300 or more).
  • work-related phone calls (including mobiles) and phone rental (a portion reflecting the share of work-related use of the line) if you can show you
    • are on call, or
    • have to call your employer or clients frequently while you are away from your workplace
  • heating, cooling and lighting
  • the costs of maintenance to your home office furniture and fittings cleaning expenses

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

Records You Need to Keep (Tax Office Requirement)

During the financial year you’ll receive documents that are important for doing your tax, such as payment summaries, receipts, invoices and contracts.

Generally, you need to keep these for five years from when you lodge your tax return in case we ask you to substantiate your claims.

Records you need to keep include:

  • payment summaries from payers, including your employer and the Department of Human Services
  • statements from your bank and other financial institution showing the interest you’ve earned
  • dividend statements from companies
  • summaries from managed investment funds
  • receipts or invoices for equipment or asset purchases and sales
  • receipts or invoices for expense claims and repairs
  • contracts
  • tenant and rental records.

If your total claim for work-related expenses is more than $300, you must have written evidence to prove your claims.

If you acquire a capital asset – such as an investment property, shares or managed fund investment – start keeping records immediately because you may have to pay capital gains tax if you sell the asset in the future. Keeping records from the start will ensure you don’t pay more tax than necessary.

Your documentation must be in English, unless you incurred the expense outside Australia.

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

Smart Tips for Saving for A Home

According to ASIC, ” the Australian Securities and Investments Commission (ASIC)”, the first step in saving for a home is working out how much you can afford to spend for your first home. “Be realistic. You may need to consider a smaller property, an older property, or a property in a different area, just to get  you started in the property market,” ASIC emphasized.

To build your home deposit fund faster, ASIC gives the following tips:

  1. Cut back on extras. “The easiest way to see where you can cut back is by doing a budget. Write down your essential costs, such as rent, bills and food, and subtract this amount from your income. What is left over is what you could potentially save for your deposit.”
  2. Move back into the family home. Rent takes up a huge chunk of your income and saving on it could hasten the growth of your fund for your new house.
  3. Put your savings into high-interest products. Study your investment options, but be wary of products that promise unrealistically high interest because they may come with high risk as well.

“Buying a home is a big step and it’s easy to be daunted by the large sums of money involved. With careful budgeting, saving money towards your own home is made much easier,” ASIC concluded.

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

Capital Gain Tax Concession for Small Business

This information applies from the 2008–09 year onwards.

This fact sheet provides an overview of the capital gains tax (CGT) concessions available for small business and the basic conditions you must satisfy to access the concessions.

The concessions reduce the capital gain on business assets that you must include in your assessable income.

You must first satisfy the basic conditions that apply to all the CGT concessions for small business. You must then satisfy any additional conditions that apply particularly to the individual concessions.

You can apply as many concessions as you are entitled to until the capital gain is reduced to nil. This choice allows you to get the best tax results for your situation.

There are rules about the order you apply the CGT small business concessions, any current year or prior year capital losses and the CGT discount.

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

Home Office Expense and Running Cost

You may be entitled to claim deductions for home expenses including a computer, phone or other electronic devices you are required to use for work purposes, as well as a deduction for running costs. As an employee, generally you can’t claim a deduction for occupancy expenses, including rent, mortgage interest, council rates and house insurance premiums. If you are an employee and required to use your computer, phone or other electronic device for work purposes, you may be able to claim a deduction for your costs.

If you perform some of your job from a home office, you may be entitled to a deduction for the costs you gain in running it, including:

  • for home office equipment, such as computers, printers and telephones, the cost (for items costing up to $300) or decline in value (for items costing $300 or more).
  • work-related phone calls (including mobiles) and phone rental (a portion reflecting the share of work-related use of the line) if you can show you
    • are on call, or
    • have to phone your employer or clients frequently while you are away from your workplace
  • heating, cooling and lighting
  • the costs of maintenance to your home office furniture and fittings
  • cleaning expenses

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

What Records are Kept for What Reason?

There are some documents that are mandatory for tax purpose during the end of financial year such as PAYG summaries, receipts, invoices and contracts.

If you don’t have your PAYG summary, then the recent two weeks pay slips can be used to calculate the estimate for your refunds.

These documents are preferred to be kept for at least 5 years from when you lodge your tax return, in case ATO asks to substantiate your claims.

What are the records you need to keep?

  • Contracts
  • Tenants and rental records
  • Receipts and invoices for equipment or asset purchase and sales
  • Receipts and invoices for expense claims and repairs
  • PAYG summaries from payers
  • Bank statements from companies
  • Summaries from investment funds.

If the total claim for work related expenses is $300 or more, a written evidence to prove the claim is mandatory.

And if the assets are acquired, keeping the records can be proved worthy as you may have to pay capital gains tax if the assets are sold in the future. Keeping records ensures that you don’t pay more tax than necessary.

The most important part about keeping the record is that the documentation must be in English, unless the incurred expense is outside Australia

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