Many Australians lose hundreds of dollars each year simply because they forget work-related deductions or receipts for items they can claim back.
Do you compare your tax refund to your friends and family and wonder, “What can I claim on tax to get a better tax refund”?
There are many ways Australians can improve their tax refund. Unfortunately, millions of dollars are left in the hands of the ATO every year. Money lost by taxpayers who simply didn’t know how to make the most of their tax return.
Keeping track – and records – of tax deductions is the best strategy for getting a better tax refund. Be careful though, don’t add fictional or inflated claims to your tax return. The ATO has very clever technology to find them. We all need to pay tax to keep the country going, but we can all get a better tax refund by getting the right help at tax time.
Most taxpayers use a tax agent like Etax to help them get a better tax refund AND avoid ATO audits, but the tips below are still very important.
Ready to lodge your tax return and get that refund?
It takes just a few minutes online, with live online support to help boost your refund.
Make claiming tax deductions simple:
Etax provides an automated deduction-finder that helps you find the deductions you deserve. Your Etax return will automatically suggest deductions like the ones below, when they are most relevant for you.
Tax cuts (including the LMITO) that were available to many Australians over the past few years have been removed by the Australian Government from the 2022-23 financial year.
Claiming tax deductions to get the best tax refund
Here are 10 of the most under-claimed (but legitimate) tax deductions:
1. Car expenses
Often forgotten, these car costs quickly add up so don’t leave them off your tax return. But, don’t get carried away with car expense claims. Be honest – if you drive a lot or regularly for work, the deduction for car expenses can really get a better refund for you.
- NOTE: Your journey to and from work cannot be claimed, unless you have to transport bulky equipment that you cannot leave at work.
2. Home office running costs
Here’s a deduction that gives you a much bigger refund, if you qualify to claim it. Do you regularly fulfil employment duties at home? Do you have additional expenses as a result? If so, read more about home office expenses here.
3. Travel expenses
Include the costs of any work-related travel and/or accommodation. If you receive an allowance from your employer, you must include this amount as income on your tax return. Always keep good records, such as a travel diary, and all your receipts for your travel expenses.
If you wear a branded uniform for work, you can claim up to $150 per year for laundry expenses without receipts.
5. Income Protection
If you pay for income protection insurance, outside of your Superannuation, you can claim the cost of the premium as a tax deduction.
6. Union or Membership Fees
If you’re a member of a union or a professional body, you can claim those registration fees.
7. Accounting Fees
If you paid a tax agent to prepare your tax return last year, make sure you include the fee you paid as a deduction this year.
8. Books, periodicals and digital information
These are expenses very few people realise they can claim. Educational and trade publications, print or digital, directly related to earning your income, should always be included in your tax return. They can really increase your tax refund.
Claim depreciation on your computer when you use it for work. Your tax agent will help you work this out, as it’s a little complicated. Plus, for a bigger tax refund, remember to claim the work-related percentage of your home internet use and phone expenses on your return.
10. Tools and equipment, including protective items
If you buy and repair items needed to do your job, such as non-slip healthcare shoes, overalls, measuring devices, stationery etc. you can also claim these as tax deductions.
Keep a diary for anything work-related. This is very helpful for home office, laundry, supplies and tools. Your diary helps you to both calculate and prove the work-related amounts on your tax return. Your diary can be a simple list with a description, date and amount for each item – plus keep the receipts.
Increase Your Tax Refund with Simple Record Keeping
If you want to get the best tax refund every year, simple record keeping is the trick. Keep every receipt for every work-related expense – even if you’re not sure if you can claim them.
Here’s a guide on easy tax record keeping guide to help you.
Getting the best tax refund and avoiding ATO trouble isn’t easy on your own.
That’s why we’re here! At Etax.com.au, it’s our job to help you claim the maximum possible deductions, to get the best tax refund that you’re entitled to.
It’s no wonder that most taxpayers use a registered tax agent such as Etax.com.au to prepare their tax return.
If you’re ready to start your tax return, simply click here and you could be finished in just a few minutes!