Surprising things to claim during tax time

Financial expert Gerry Incollingo, the managing partner at LCI Partners, told NCA NewsWire that the pandemic has revolutionized the way we work and not just because more of us are working from home.

“We have been forced to be more aware of maintaining strict hygiene practices and adhering to social distancing rules,” he said.

“Employees who work in the medical, healthcare, personal care, education, retail, hospitality and retail sectors – where physical contact or social distancing is impossible – may be eligible for deductions from the cost of personal protective equipment, such as hand sanitizer, gloves, antibacterial spray, face shields, face masks, and rapid antigen testing.”

Another distraction that may surprise people is self-study.

“If you have paid for a magazine or app subscription, joined a professional organization such as BNI Australia or joined a trade union and paid fees, you can claim these charges,” Mr Incollingo said.

“You may also be eligible for deductions from course fees and expenses related to self-study, webinars and training that will help you continue your professional development.

“For example, if you are a dentist and you want to specialize in cosmetic surgery, you can claim course fees, textbooks, et cetera.

“However, if you want a full career switch and decide to become a florist, it’s not tax-deductible.”

Curtin Tax Clinic founder and director Annette Morgan told NCA NewsWire that a handbag, briefcase or satchel used primarily for work purposes can also be claimed.

“If it costs less than $300, they can claim it in full, or if it’s more than $300, they have to write it off — that is, claim it over a period of time,” she said.

“If they buy something to carry their laptops, computer tablets, work papers or diaries and don’t use it for private purposes, they can claim a deduction.

“If they use it for both private and work purposes, they have to divide the claim.

“But if they buy a bag and mainly put their private items like lunch, water bottles, wallet, keys and beauty products in it, it would only be considered private in nature and not deductible.”

Taxpayers can also claim tax deductions for the cost of first aid training if they are a designated first aid person in their workplace and must complete a course, Ms Morgan said.

People couldn’t claim the cost of getting or renewing their personal driver’s license, but if they needed a special permit, such as a driver’s license to drive a heavy vehicle, those costs were deductible, she added.

While many Australians file their tax returns themselves, they may be missing out on hundreds of dollars they could claim, Mr Incollingo said.

“Anyone can research what they are entitled to with Google or by visiting the Australian Taxation Office website, but I would highly recommend entering into a certified tax account,” he said.

“They are aware of the latest changes in tax law and have a deep understanding of what you can legitimately claim.

“Taxation can get a little complicated when you’re juggling a full-time job coupled with a start-up, being part of a trust, or running a self-managed super fund, so it’s definitely worth talking to an expert.

“In addition, you can also reclaim the cost of hiring an accountant.”

Ms. Morgan said one of the best ways to understand what can be claimed is by looking at the ATO’s profession- and industry-specific guides.

“The taxpayer must have spent the money and not been paid back by his employer or anyone else,” she said.

Taxpayers should only declare the work-related portion of the costs if there is a combination of work and private use, such as a cell phone, and they should keep a receipt, she said.

Mr. Incollingo said there are multiple ways to make your money work even better.

“Real estate investments are considered one of the most common ways people choose to grow their wealth,” he said.

“Whether you’re renting out a rental property for passive income or turning it around and sorting it out, you won’t see results overnight.

“Real estate is a slow burn, and by slow burn I mean at least 12 months.”

The stock market and cryptocurrency were other options that could bring some gains, but Mr. Incollingo warned that the volatility of the stock market could put some people off.

Alternatively, Mr Incollingo said people can invest in themselves.

“Everyone has a talent or skill of some sort that they set up as an afterthought for extra money,” he said.

“For example, graphic artists could advertise their skills in creating logos and branding for companies.

“The money from your sideline activities can easily be invested in a savings account or used to make voluntary contributions to your pension fund.

“Think of ways you can turn your hobbies into money.”

Ms. Morgan suggested increasing your tax deductions by making some donations to charitable organizations or by putting some extra money into your retirement fund.

“If you receive a tax refund – and often it can be a large sum of money – taxpayers should consider saving it for a rainy day or reducing debt and parking it in the mortgage clearing account to lower the interest on the mortgage,” she says. said.

Mr. Incollingo also advised people to look into sacrificing salary, which could reduce the amount of tax they pay.

“For example, if your income was $60,000 a year before tax, you might decide to choose $45,000 as your salary and the difference goes toward the benefits you selected,” he said.

“Before you start a separate savings account, you need to create an emergency buffer for unexpected life events.

“It is recommended that you have the equivalent of at least three months’ wages to assist you if we find ourselves in another pandemic lockdown or if you find yourself out of a job.”