It’s time to get some tax paid back

TAX time gives us an opportunity to claim back some of the money we spend as part of our job, and there’s a whole range of work-related costs that can be claimed on tax.

Ato.gov.au offers plenty of information about deductible expenses for a variety of occupations. You’ll need receipts if your work-related costs total more than $300, and you can’t claim a cost that’s been reimbursed by the boss.

Some perfectly legitimate work-related expenses can come as a surprise. For instance, if you use your smartphone, tablet or laptop computer as part of your job, you may be able to claim part of the cost in this year’s tax return. Stick to the rules though. You need to keep a diary for four weeks showing how much of the cost of electronic equipment relates to work versus private use.

These days plenty of us spend at least part of our week working from home. If that sounds like you, it’s possible to claim a tax break

❝ It’s quicker – and cheaper to get things right first time.

for home office expenses – like a portion of your phone or internet bills, or depreciation of home office equipment like a desk or chair.

Jump on the ATO website and take a look at the online home office expenses calculator. It makes it easy to see what you can claim.

Don’t overlook the other side of the ledger – your taxable income. This includes money earned on investments. Dividends from shares, interest earned on savings accounts, and any profits you’ve made on the sale of an investment property or shares – it’s all got to go in your tax return.

The ATO uses data matching to check the income you’ve earned over the past financial year, and penalty charges can apply if you overlook anything. So it’s quicker – and cheaper, to get things right first time.

If you’re in a hurry for a tax refund, using the Tax Office’s online myTax service can fast-track the process. myTax prefills some details such as interest earned on savings accounts, which means less scrambling through paperwork. myTax can only be accessed through the myGov portal so you’ll need to register with myGov first to use the service.

If your tax affairs are more complex, it’s worth using a registered tax agent.

The fees for preparing your tax return can be claimed as a deduction next financial year and using a tax agent can extend the time to lodge your tax return beyond the normal October 31 deadline.

Paul Clitheroe is a founding director of financial planning firm ipac, Chairman of the Australian Government Financial Literacy Board and chief commentator for Money Magazine.