Tax Deduction Guide in South Australia by Tax Agents in Adelaide

Work-Related Deductions: What You Can Claim

When it comes to work-related expenses, the Australian Taxation Office (ATO) offers a range of deductions that can help you save. Here are some common ones:

• Car and Travel Expenses: If you use your car for work (like travelling between job sites or attending meetings), you can claim things like fuel, parking, and maintenance. Just remember, your daily commute to and from work isn’t deductible.

• Tools, Equipment, and Office Supplies: Got a computer, stationery, or tools you use for work? You can claim the cost of these, but only for the portion used for work. So, if you’re also using that laptop for Netflix, you’ll need to split the claim.

• Uniforms and Protective Clothing: If you’re required to wear specific protective gear for work (like steel-capped boots or high-vis vests), you can claim those costs. Just note that general clothes, like a nice suit for meetings, won’t be deductible unless it’s specialised gear.

Home Office Deductions

Working from home? You can claim some of the expenses that come with running a home office, like electricity, internet, and office furniture. The ATO offers two ways to calculate this:

1. Fixed Rate Method: You can claim 67 cents per hour for your running costs like electricity and internet. No need for a dedicated office space for this one, but you do need to keep a record of your working hours.

2. Actual Cost Method: If you’d rather calculate your exact expenses (like your internet bill), you can use this method. It takes a bit more effort, as you’ll need to track and apportion the costs between work and personal use, but it might get you a bigger deduction if your home office expenses are high.

Personal Deductions That Can Help You Save

• Investment Property Expenses: Own an investment property? You can claim things like mortgage interest, property tax, and maintenance costs, all of which can reduce your taxable income.

• Superannuation Contributions: If you’re making personal contributions to your super, you can claim up to AUD 27,500 a year. If you didn’t hit that limit in previous years, you might even be able to carry forward the unused portion.

• Charitable Donations: Donated to a registered charity? Any donations over AUD 2 are tax deductible—just keep those receipts handy!

• Tax Management Costs: If you hired a tax agent or paid for software to manage your taxes, those costs can also be deducted.

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Claiming Self-Education Expenses: Maximise Your Tax Deductions

If you’re working in South Australia, self-education expenses that directly relate to your job may be tax-deductible. These deductions can help lower your taxable income, but it’s important to know which expenses qualify and how to claim them.

Eligible Self-Education Expenses

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• Tuition and Course Fees: If you attend job-related courses, seminars, or conferences, you can claim the cost of tuition.
• Course Materials: Textbooks, stationery, and other essential supplies for your course are deductible.
• Travel Expenses: If you need to travel for your education (e.g., fuel or public transport), these expenses can be claimed.
• Accommodation and Meals: If your course requires you to stay overnight, you can also claim your accommodation and meal costs.
• Asset Depreciation: If you use things like computers or printers for study, you can claim the work-related portion.
• Interest on Borrowings: If you took out a loan to cover your education, the interest on that loan is deductible.

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Eligibility Criteria

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To claim these expenses, the education must directly relate to your current job and improve or maintain your work skills. For example, a veterinarian taking a specialised course to improve their practice is eligible. However, you can’t claim for education aimed at changing careers, and expenses reimbursed by your employer aren’t deductible.

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Key Considerations

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• First $250 Rule: The first $250 of your self-education expenses can’t be claimed. Anything beyond that can be deducted.
• Proportional Claims: If an expense is both personal and work-related, you can only claim the work-related portion. For example, if you use your personal computer for both work and personal use, you can only claim a portion of its cost.

What You Can’t Claim

Not everything is tax deductible, though. For example:

• Commuting Costs: Driving to and from your regular workplace? That’s considered personal travel, so it’s not deductible.

• Private Expenses: Things like groceries, childcare, or home renovations (even if you work from home) don’t qualify.

• Entertainment: If you took a client out to dinner or attended a work-related event, that might sound like a work expense, but the ATO usually considers entertainment personal. There are some exceptions, but in general, don’t expect to claim your Friday night drinks.

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Record Keeping: Keep It Simple, But Keep It

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The key to getting the most out of your deductions? Good records. Whether it’s receipts for your work-related expenses or a log of your home office hours, keeping everything organised will make tax time much smoother. Plus, if the ATO ever comes knocking for proof, you’ll be ready!

This guide is designed to give you a clearer picture of what you can and can’t claim when tax season rolls around. And remember, if anything still feels confusing, our tax agents in Adelaide are here to help you navigate it all.

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Get Expert Help from Trusted Tax Agents

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Tax time doesn’t have to be a hassle. At Ashmans Accounting, our dedicated tax agents specialise in maximising your deductions and ensuring you get the best possible refund. Whether you’re claiming work expenses, managing investments, or navigating complex tax situations, our experienced team is here to make the process smooth and stress-free. Ready to get started?

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📞 Call us at 1300 448 799 or Book Online Now to meet with one of our expert tax agents today!