From the category archives:

Tax Deductions

Small Business and General Business Tax Break

February 14, 2009

Small businesses will be able to access the tax break for assets costing $1,000 or more. For all other businesses, the asset threshold is $10,000.
The tax break provides an additional tax deduction for assets acquired from 13 December 2008 to 30 June 2009, where the asset is also installed before 30 June 2010. The deduction will be [...]

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Claiming donations to emergency relief funds

February 10, 2009

The Tax Office today announced a practical approach to ensure those donating to help the victims of the Victorian bushfires and Northern Queensland floods can do so with minimum fuss.
People who give to ‘bucket donations’ can claim a tax deduction equal to their contribution up to $10 in their 2008-09 tax return without the usual [...]

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Compliance 08: Rental Properties

June 6, 2008

Rental income and expenses has been a strong focus for a few years, because of the large number of new entrants and the wide range of common mistakes being made in claims.
Figures recently released indicate that over 1.5 million people claimed more than $24 billion in rental deductions in their tax returns last year. Almost [...]

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Compliance 08: Work-related expenses

June 1, 2008

Work-related expenses will continue to be a focus area for the Tax Office in 2007/08.  Around 7.1 million individuals claimed $12.5 billion in 2005–06 income tax returns - an increase of 9.3% over the previous year.
The Tax Office plans to conduct 15,000 reviews or audits of at-risk cases. Based on an analysis of claim patterns for the previous year, the ATO [...]

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Q&A: Allowances and Deductions

September 3, 2007

Question: I received a laundry allowance from my employer. Does this mean I have been reimbursed and can’t claim a tax deduction for laundry?
Answer: Receiving an allowance from your employer (as shown on your payment summary) is not the same as being reimbursed. The allowance is taxable income and included on your tax return along [...]

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Work Related Expenses Under the Microscope

June 13, 2007

Last year over 7 million people claimed deductions for work related expenses totalling a whopping $12 billion.
The Tax Office has said it will be looking at claims for work-related expenses very closely.
For the 2007 tax return, the A.T.O. will be paying particular attention to claims for motor vehicles, self-education, home-office and travel.
The following guidelines should [...]

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Q & A: Claiming Everyday Bank Fees

June 13, 2007

Question: If my pay is made directly by my employer into an everday bank account, can I claim the bank fees and charges associated with that account?
Answer: In most cases, the answer will be no. Banks rarely charge for deposits into everday accounts and this would be the only portion you may have a claim [...]

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Investment property tips – depreciation

June 10, 2007

Wanting to capitalise on the rental property that you own? A lot of people hold rental properties for a two-fold reason: to negative-gear (reduce their current taxable income) and to obtain capital growth from the property in future years.
To maximise negative gearing it is advisable to obtain a quantity surveyor’s report to utilise the [...]

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Q & A: Can I claim my TAFE fees?

June 5, 2007

I was asked earlier today a question I often hear: Can I claim my TAFE fees as a tax deduction? The answer really depends on your individual situation.
You can claim self-education expenses only if they are directly related to your CURRENT employment (such as a secretary taking a Business Administration certificate).
Typically, the person asking is [...]

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Beware: Common errors in rental property claims

June 4, 2007

The ATO has stated it will continue to closely scrutinise rental property expense claims for the 2007 income year.
Some of the areas of concern identified by the ATO in recent compliance activities include:
- Claiming deductions during a period where the property is not genuinely available for rent;
- Claiming full deductions when the property was [...]

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Forgotten Tax Deduction: Income Protection

June 3, 2007

While life insurance is not tax deductible, income protection insurance is.
Payments are typically made monthly on these policies but can usually be paid up to a year in advance.
June is a great time to maximise your tax deductions. If you pay your annual premium now as a lump sum, you can then claim a tax [...]

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Neglected Tax Deduction #2

May 28, 2007

Okay, so most of us know what we can claim on our tax returns (or at least what we usually claim) but there are still a lot of deductions that go neglected by people year after year. Continuing a series on Neglected Tax Deductions, today I mention another oft-forgotten area.
Do you work outdoors?
If the nature [...]

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How Do They Work? "Tax Deductions"

May 26, 2007

A common misconception I hear people say regarding certain expenses or giving is, “it’s okay, I’ll get it all back at tax time.” Well, that’s not exactly true and, strictly speaking you do not “get it back” at all. So what does a deduction do…How do deductions work?
A tax deduction reduces the amount of [...]

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Neglected Tax Deduction #1

May 22, 2007

Okay, so most of us know what we can claim on our tax returns (or at least what we usually claim) but there are still a lot of deductions that go neglected by people year after year.
Did you know?
Most taxpayers are aware they can claim a deduction of their accountant’s fee for preparing their return. [...]

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