Some people look forward to taxing season because they have paid their taxes all year and hope to get a good refund to pay for all the tax-deductible expenses they have paid for their company tax return.

 A few recent legislative changes may assist ordinary Australians in receiving well-deserved tax relief.

 Deductible expenses vary by sector, but as a basic guideline, if your expenditures are directly related to earning your profits, you can report them as a tax deduction. Then there's your contribution to superannuation's marginal rate; but, a 15% levy would be added to these investments in the superannuation fund.

Tax deductions for mobile phones

You may file a claim if you are using your mobile phone, make work calls, send worktexts, and use the data for work-related purposes. To back up your point, you'll need to keep track of the proportion of your cell phone expenses that you intend to deduct for work. Please keep in mind that if your company compensates you or covers your bill, you will not be entitled to claim your cell phone expenses.

Deductions for motor vehicles

You could claim work-related transportation (and car expenses) if you meet the eligibility requirements, including maintaining a logbook or a log of work-related kilometers driven.

Make sure your health care coverage is adequate.

You must pay the Medicare Levy Surcharge if your salary is $90,000 for a single adult or $180,000 for a family and that you do not have private health insurance (MLS). The MLS costs at least 1% of your adjusted gross income, while standard private health insurance costs less than 1% of your earnings.

Based on this detail, you will find that purchasing private health insurance is less expensive than paying the Medicare levy surcharge.

Examine what private health insurance is suitable for your case, and then decide if it is better to do that than not to get it.

Deductions for income protection insurance

Income Protection Insurance (IPI) is a form of insurance that pays out if you cannot function due to an accident or illness.

  • One of the advantages of providing Income Protection Insurance is that if it protects your daily income, it is tax-deductible!
  • Donations may be claimed as tax deductions.
  • Any contributions made to a deductible gift recipient (DGR) can be reported as a tax deduction by the Australian Taxation Office (ATO)!
  • If a donation meets the following criteria, you will demand a tax deduction for it:
  • The award must be made to a DGR.
  • The gift should be in the form of money or land.
  • The present must be given as a gift, which indicates you will get almost nothing exchange.

Accounts NextGen can recruit a trained Tax Accountant in Perth to complete the tasks for you.