Tax time often brings the challenge of sifting through various receipts and records to make sure you’re getting the most out of your tax return. While many are familiar with the usual claims like work-related expenses and charitable donations, there are plenty of lesser-known deductions that could make a big difference.
By knowing what’s possible, you can ensure you aren’t leaving any money on the table. Some deductions can be claimed without you even realising it. To start, there is that site where you can learn about some surprising things you can claim this tax season by visiting this helpful guide on the tax-free threshold.
Uncommon Tax Deductions You May Not Know About
Tax returns aren’t just about the standard deductions. There are several surprising expenses you may be eligible to claim, ranging from home office costs to medical expenses and even the cost of specific tools.
1. Home Office Expenses
For those who work from home, there are numerous deductions you may not have considered. In fact, a significant portion of your home-related expenses can be claimed if they relate to your work.
- Home office running costs: If you use part of your home exclusively for work, you may claim a portion of your utility bills, including electricity, gas, and water.
- Phone and internet costs: Any phone calls or internet usage related to work can be deducted.
- Depreciation on office equipment: Desks, chairs, computers, and other equipment used in your home office can be depreciated over time for tax purposes.
- Part of rent or mortgage interest: If you have a dedicated workspace in your home, you may be eligible to claim a percentage of your rent or mortgage interest.
2. Vehicle Expenses
If you use your car for work purposes, you may not realise that a number of vehicle-related costs can be claimed at tax time. There are two common methods for calculating vehicle expenses.
- Cents per kilometre method: This method allows you to claim a set rate for each kilometre driven for work. The rate varies based on the number of kilometres driven for business purposes.
- Logbook method: By maintaining a logbook, you can claim the actual costs related to the percentage of work-related travel. This can include petrol, insurance, and even repairs.
3. Education And Training Expenses
If you’re undertaking studies or training related to your current job, many associated costs are deductible. This includes not only course fees but also any materials or travel expenses.
- Course fees and materials: The cost of the course and any materials (such as textbooks or software) can be claimed if the course is directly related to your work.
- Travel expenses for courses: If you need to travel for a course, the cost of transport and accommodation can be deducted as long as the education is work-related.
4. Work Uniforms And Protective Clothing
If you’re required to wear a uniform or specific protective clothing for your job, these costs can be deducted from your tax return. This applies to a wide range of industries, from healthcare to construction.
- Uniforms: The purchase and maintenance of uniforms, including dry cleaning, can be claimed if your employer requires you to wear them.
- Protective clothing: Items like safety boots, high-visibility vests, helmets, and gloves that are necessary for your job can also be claimed.
5. Tools And Equipment
Many workers need to buy tools and equipment to perform their jobs. These purchases can also be deducted as part of your tax return.
- Depreciation of tools: Tools that are essential to your work can be depreciated over time. This includes everything from power tools to computers.
- Replacement costs: If you replace any items related to your work, you may be eligible for a tax deduction.
Surprising Personal Expenses You Can Claim
There are also several personal expenses that might be deductible, especially if they are connected to your work or health needs.
6. Medical Expenses For Tax Purposes
Certain medical expenses related to work or health issues affecting your ability to work can be claimed.
- Work-related injuries: If you sustain an injury at work and need medical treatment, you may be able to claim the associated costs.
- Health-related expenses: Items like hearing aids, glasses, or treatments needed to maintain your work capacity can sometimes be deducted.
7. Donations To Charity
Many people don’t realise that donations to registered charities are tax-deductible. This can help reduce your taxable income while also supporting a good cause.
- Monetary donations: Any donations made to registered charities can be claimed on your tax return, provided the charity is registered with the ATO.
- Non-monetary donations: You can also claim donations of goods, such as clothing or household items, to registered charities.
- Volunteer expenses: Costs incurred while volunteering for a registered charity, such as travel or meals, can be deducted.
8. Childcare And Dependent Care Costs
If you pay for childcare services to enable you to work, or if you care for dependents, you may be eligible for tax benefits.
- Childcare fees: Depending on your circumstances, some of your childcare fees may be deductible.
- Dependents’ care: If you pay for care or assistance for a dependent family member, some of those costs may also be eligible for a tax offset.
9. Gardening And Cleaning Services
Some people are surprised to learn that gardening and cleaning services related to their rental properties or home businesses may be deductible.
- Rental property maintenance: If you pay for gardening or cleaning services for your rental property, these costs can be deducted from your rental income.
- Business property maintenance: Similarly, if you maintain a home business, any cleaning or gardening related to the business is deductible.
How To Maximise Your Tax Return
Making sure you claim everything you’re entitled to starts with keeping detailed and organised records. The more thorough your documentation, the easier it will be to maximise your tax refund.
10. Keep Accurate Records
Good record-keeping is essential for claiming deductions accurately. Keep track of receipts, invoices, and any other paperwork that supports your claims.
- Work-related receipts: For any items you purchase for work, such as uniforms or office supplies, keep the receipts.
- Professional service invoices: If you use a professional service for work-related matters, such as accounting or consulting, keep the invoices for these services.
11. Seek Professional Advice
If you’re unsure about what you can claim, seeking advice from a tax professional can help ensure you’re maximising your tax return.
- Tax accountants: A tax accountant can help you identify all eligible deductions and ensure you don’t miss anything.
- Tax software: Using tax preparation software can guide you through the process and help you claim all possible deductions.
Conclusion
There are numerous surprising things you can claim at tax time in Australia. By knowing about all the potential deductions, from home office expenses to charitable donations and even the costs of protective clothing, you can ensure you’re getting the most out of your tax return.
Keeping accurate records and seeking advice when necessary are key to ensuring you maximise your refund. Don’t overlook these hidden tax breaks—make sure you claim everything you’re entitled to.
Frequently Asked Questions
Can I Claim Home Office Expenses Even If I Work Part-Time From Home?
Yes, you can claim home office expenses if you work from home, even on a part-time basis. You can claim a portion of your rent or mortgage interest, electricity, phone bills, and internet costs, as long as the expenses are directly related to your work.
What Type Of Educational Expenses Can I Claim For Tax Purposes?
You can claim educational expenses that are related to your current job. This includes course fees, textbooks, and even travel expenses associated with attending classes or workshops. The course must help improve your skills in your current role to be deductible.
Are There Any Tax Breaks Available For Donations To Charity?
Yes, donations to registered charities are tax-deductible in Australia. If you donate money or goods to a registered charity, you can claim the donation amount on your tax return. You can also claim out-of-pocket expenses incurred while volunteering for a charity.