10 tax deductions you didn’t know you could claim from the ATO
With tax time around the corner, do you know you may be able to claim handbags, make-up costs, gym equipment expenses or even guard dogs?
The Australian Taxation Office says you’re entitled to claim tax deductions for some expenses, most of which are directly related to earning your income.
However, most people are not fully aware of what they could really claim.
You can claim for the cost of shoes that are part of your uniform, either compulsory or non-compulsory, that is unique and distinctive to the organisation you work for. Additionally, work boots worn by tradies or construction workers are tax deductible as well.
Handbags for work may be tax deductible. Women will have more reason to shop for a new handbag now that the Australian Tax Office (ATO) confirms that handbags may be claimed on tax, with the provision that the bag is used for work.
The ATO accepts sun protection tax deductions for sunglasses when a worker is exposed to the sun. This type of expense is common for outdoor workers such as builders, gardeners, electricians and construction managers.
If you’re an employee who regularly works from home, you may be able to claim a deduction for expenses relating to that work. These are generally home office running expenses, and phone and internet expenses. In limited circumstances, you may also be able to claim occupancy expenses such as rent. One such circumstance is if your home is your principal place of business. For more details, contact us.
This is highly controversial. However, the ATO states that if the you have a genuine guard dog that provides security for your tools or property, it is considered a working beast and a capital asset therefore subject to depreciation deduction.
Gym equipment, X-Box consoles, ping-pong tables and pool tables provided at work premise may be tax deductible if you buy to them keep workers happy, healthy and engaged.
Works of Art
While it seems wrong, buying art for your workplace and writing if off on tax in perfectly allowable. Whether it’s for a boardroom or a cafe wall, the immediate write-off rules apply.
The cost of subscriptions of publications and products that are relevant to your trade or profession is generally deductible. This can include professional magazines, subscription TV and journals. Make sure you keep your receipts and talk to your experienced tax accountant to claim this at tax time.
You can claim a deduction for overtime meals if all the following apply, you:
- get paid and overtime meal allowance under an industrial instrument (such as an award)
- buy food and drink on overtime.
You could even claim up to the reasonable allowance expenses amount without receipts of the meals if you satisfy the conditions above.
Cash Shortages or Client Bad Debts
If you deal with money as part of your employment and you are required to repay your employer amounts (you can substantiate) in respect of cash shortages or client bad debts, then:
- you have incurred a deductible loss or outgoing in earning employment income
- you are entitled to claim a deduction for those amounts.
Questions? Contact our friendly tax accountants to maximise your deductions.
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