EOFY Tax Tips Roundup

28 Jun EOFY Tax Tips Roundup

Here are some last-minute tax tips to maximise your refund for the year.

Nothing is certain in life but death and taxes. Hence for this week, we have given you some tax tips before June 30 arrives. If you have missed our posts, we are providing you this roundup. EOFY is just around the corner, so make your 2018 tax return more rewarding and check out these tips now!

This allows you to claim an immediate tax deduction for all capital purchases costing less than $20,000, rather than depreciating the cost over several years, as used to happen. This is great for tech items such as computers, tablets and phones, as well as tools and equipment, office furniture and even motor vehicles. The allowance is available to all businesses with an aggregated turnover of less than $10 million.

The expenses that you can claim include:

• Heating, cooling and lighting
• Cleaning costs
• Decline in value (depreciation) of home office furniture and fittings, office equipment and computers (for items over $300)
• Computer consumables, stationery, telephone and internet costs
• Items of capital equipment (such as furniture, computers and associated hardware and software) which cost less than $300 can be written off in full immediately.

If you used your personal mobile phone for work purposes, you can claim a deduction for the business-related use. Make sure you have your phone bills collected together and have kept a log of your business/personal use over a four-week period. That percentage can then be applied to the whole year.

You can claim a deduction for donations of more than $2 to a registered charity provided you have a receipt for the donation.

BONUS: Additional Tax Tips!!!

• According to Dave Ebdon, Senior Tax Specialist at Tax & Super Australia ,“The ATO will be paying particular attention to claims for clothing and laundry expenses, given that last year around 6 million people claimed work-related clothing and laundry expenses,” he said. “This is almost half of all taxpayers, and it is highly unlikely that this many people would be required to wear uniforms, protective clothing or occupation-specific clothing.” “If you don’t have receipts for your expenses, you can only claim a maximum of $300 for work related expenses.”
• Claim everything you are entitled to: Make sure you know what you can claim. For example if you are on the road for work (or work outside) you can claim sunscreen so if your foundation, lip-balm or moisturiser has an SPF factor then you may be able to claim it. You can also claim home office, internet, travel, training, handbags, food when travelling overnight.
• Gather written evidence. Make sure you have written evidence, such as receipts, invoices and bank or credit card statements, for everything you intend to claim.
• Prepay expenses. If you’re a small business you might consider prepaying expenses such as rent or insurance for up to twelve months.

* Soul Finance Group and its finance brokers do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

References:

https://mozo.com.au/savings-accounts/articles/eofy-last-minute-tax-tips-to-jump-on

https://au.finance.yahoo.com/news/12-last-minute-tips-save-taxes-040823563.html

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