The following information is provided as a convenience and has been sourced from the Australian Tax Office website. Any links below will open in a new window on the ATO website.
So many questions are asked around Tax Claims and this is due to every person’s tax claims being different, although it should not be that hard right, I mean how can the government hope to engage with its citizens if the process is too complex? The vast majority of tax is simple, and these are often the top questions asked
What is a Tax claim?
A tax claim is a deduction that you may be able to make against your total taxable income for the year you purchased the item. An example may be that you purchased safety shoes that must be worn as part of your role at work and you are not repaid for these by your employer therefore you may be able to claim the price of the shoes.
One of the most talked about claims for this year is “working from home tax claims” due to COVID forcing people to work from home. There has been a simplification to this process for 2020, if you would like to see these rules, click here
What can I claim?
The Australian Tax system has a wide range of areas where you can claim deductions for if appropriate. The following list is linked directly to the ATO if you wish to read more detail. You can claim such things as
- Vehicle Expenses
- Travel expenses
- Clothing, laundry and dry-cleaning expenses
- Home office expenses
- Self-education expenses
- Tools, equipment and other assets
- Other work-related deductions
Other deductions: You may also be able to claim a deduction for:
- Cost of managing tax affairs
- Gifts and donations
- Interest, dividend and other investment income deductions
- Personal super contributions
What can I claim on tax?
So, what can you claim on tax? Whilst the list above will provide you with the broad areas you can look to claim within, the question of what you can claim is a lot more complex. Each person position or role may present different opportunities to claim (or not).
To answer this you really need to understand what you can claim or seek help from a tax agent. However, if you know what you want to claim then it is a lot simpler, for example, if you feel you should be able to claim a deduction on clothing then check here for the rules around clothing and then check here for your occupation / industry specifics guides. you should be empowering yourself with the base knowledge on
How do I get the claim tax free threshold?
The Australian tax system is considered fair and reasonable by most including a tax fee threshold of $18,200, This is a standard for all Australian Citizens.
Here is what the ATO says about this topic
“When you start a job, your payer (employer) will give you a Tax file number declaration form to complete. Centrelink is also a payer and they will give you this form if you apply for their payments.
If you choose to claim the tax-free threshold, you tell your payer by answering Yes at question 9 ‘Do you want to claim the tax-free threshold from this payer?’ on the Tax file number declaration.”
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