We understand that tax time is not most people’s favorite time of the year, but being organized and on top of your game will save you from many headaches. Having a knowledgeable and reliable accountant can also make the process easier as they can assist to help you get the rest result possible.
Below is a list of deductions which Tradies and Apprentices should have a think about and see if they apply to them. If you are unsure if any of the below apply to you, ask your accountant who can help identify if they apply to you.
If you wear a uniform at work which has a logo or company name on it, then you can claim your laundry expenses. The ATO allow $1 per wash only made up for work related clothing or 50 cents per wash of work and personal clothes. You must keep a record if your total laundry claim is over $150.
You can also claim occupation specific clothing. Each clothing item claimed cannot be able to be purchased at a general store, but a specialty store specific to your occupation.
Purchased any protective equipment such as a hard hat, gloves, safety glasses, hi-vis vest, boots etc, then you can claim the full amount providing that you have not been reimbursed from your employer or received an allowance.
Tools & Supplies
You will be able to claim the full amount on tools purchased under the value of $300 as a tax deduction in the year that you purchased it. If the tool you purchased is over $300, it must be claimed over a few years, unless you own a small business allowing you to claim the full amount of items up to $30,000 in the year that you purchased them. You can also claim any supplies which you may have purchased such as pens, notebooks, measuring tape etc.
You can claim your travel between job sites as well as travel to your place of study. If your work requires you to carry bulky tools & equipment to your daily jobs, you are able to claim the kilometers from work and home if you meet specific requirements set out by the ATO. You can also claim travel to Christmas parties, work events, trainings or work functions provided that you do not make any personal trips on the way to or from.
If you are studying whilst completing your apprenticeship, you can claim travel from home to your place of education and back, and work to your place of education and back.
These days it is common to pay for parking while you are on a job. The expense you pay for parking is tax deductible if it is not your usual work place so, make sure to keep your receipts.
Mobile Phone Expenses
Claim a business percentage of your yearly phone bill if you use your phone for work purposes such as calling your employer, being on standby or calling your customers. Be sure to factor in any personal use which you acquire for your phone.
Sunglasses and Sunscreen
If you are out of pocket for any Sunglasses or Sunscreen, you can claim a portion of the amount as a deduction. If you use them 100% for work purposes, you can claim the full amount. If your work environment requires you to have an umbrella to complete your work, then you can also claim a portion of that expense.
If you have taken any education courses, upskilling or training courses, the fees can be deductible in the year that they are paid. The courses must be specific to your job and must be related to your income.
General deductions for course expenses can be as follows; textbooks, stationary, home office running costs, phone calls, tuition fee etc. To ensure you are claiming everything that you are entitled to, make sure you talk to your accountant about what you can claim.
Spend any time working or studying from home, be sure to keep a record of how many hours you have spent because the ATO allows a deduction of 45 cents for every hour.
Tax Agent Fees
A common deduction which is left out is the cost of completing your previous year’s tax return. The amount is fully deductible but must apply to the individual.
With a month out to tax time, it is a good idea to start having a think about what you can claim. Make sure your information is presented clearly and you are organised to ensure a stress-free tax experience for everyone.
It is important to remember that you MUST adhere to your tax obligations and should only provide information which is true & accurate. You should be able to provide evidence of your expenses should the ATO require it.
If you want to ensure that you are getting your maximum refund this year, contacts us today to book an appointment with one of our highly trusted accountants.