1.Know what you are entitled to if you work from home.
If you work from home then some portion of the running expenses can be claimed as a tax deduction. You can claim the work related portion of :
-heating .cooling and lighting of the office room
-decline in value of home office furniture and fittings
-decline in value of office equipment and computer
-computer consumables,stationery,telephone and internet costs claimed on an expense basis
2.Know what you are entitled to if you study.
Amongst the things you can claim are course fees, books costs of computer consumables and internet costs. The conditions that must be met are:
-the course must have a sufficient connection to your current employment
-improve specific skills or knowledge required in your current employment
-is likely to result in .an increase in your income from current employment
3.Have proof or purchase for everything.
It is important to keep proof of purchase for all work related purchases. Proof of purchase can include receipts, bank statements of a credit card statement and you must have proof or purchase for receipts for purchases over $300.
4.Claim what you are entitled too.
You are entitled to claim a deduction for any expense incurred in earning income. If you have incurred a work related expense and you have the paperwork to prove it don’t hesitate to claim it. Amongst the common deductions are:
-costs of transport from work site to work site when visiting clients or suppliers
-costs of travel and costs incurred on meals and accommodation deductible up to the amount actually spent. Allowances paid by your employer are taxable.
-costs of tools and other equipment provided its used for work purposes.
5.Private Health Rebate
In order to encourage Australians to take out private health insurance, most people receive a rebate on their premiums from the government. Different levels of rebate are available depending on your taxable income. Broadly the more you earn the lower the rebate. The rebate cuts out altogether if your income exceeds $140,000 for singles or $280,000 for families.
If you are eligible for the rebate there are two ways you can claim:
-through a reduced premium
-through your tax return at the end of the financial year.
If you choose to receive your rebate through your insurer, you will be asked to nominate the tier you expect to fall into based on your taxable income.
If you get it wrong and nominate a tier that results in a lower rebate than you are entitled to you will receive a tax offset through your tax return at the end of the financial year, which might result in a bigger tax refund.
If you get it wrong and nominate a tier that gives you a higher rebate than you are entitled too you will incur a tax liability when you lodge your tax return at the end of the financial year. This means you could end up owing tax to the ATO or receive a smaller refund than you might have expected.
6. DIY Tax tools are costing Australians $300 million in unclaimed tax each year. 59% of returns lodged by self lodgers are containing serious errors and South Australia had the highest proportion of incorrect lodgers.