Preparing for your Individual Tax Return
Every year the Australian Tax Office releases different rules and regulations around individual tax rates and deductions. So, what can and can’t you be claiming this end of financial year?
Take note of these 5 basics when completing your 2021-22 Individual Tax Return to ensure you’ve covered all areas of your taxable income:
1. Find your Individual Tax Rate
What kind of rate should you expect to pay on your income? Use this online calculator here to find an estimate.
Remember that tax is a progressive rate for an individual, not flat.
2. Claim deductions on your motor vehicle
You can claim vehicle travel expenses if this is part of your work (i.e driving to get mail during the day) for 72c/km up to 5000kms per annum. Home-to-work travel does not count for this deduction. The 72c/km includes all related vehicle costs such as fuel, servicing, repairs and registration, as well as recognising wear and tear on your vehicle.
3. Home Office and working from home
The ATO in light of the impact of COVID-19 has extended their ‘work from home’ deductions; there are two methods to claim deductions below:
The flat rate method allows you to claim 80c per hour every hour you work from home up until June 30th 2022 which is a nice simple method if you are doing your own tax return.
The alternative method is to calculate all relevant home expenses (requires good record-keeping) which may get you a higher tax refund. This method includes claiming 52c per hour of work plus work related use of phone, internet, printing and stationery and decline in value of office equipment other than furniture and furnishings. It’s helpful to get an accountant to assist you with this one!
4. Look out for other deductions you can claim
You can claim laundry costs if you wear a regular uniform or occupational clothing. Your mobile phone is most likely an essential item for your work therefore a reasonable percentage of the cost of this can be claimed. A registered tax agent can help you with all the extra deductions you may not know about.
5. Investment property
Owning your own investment property means you can claim many expenses associated with this on your individual tax return. Take note of expenses such as property management fees, cleaning, gardening, rates, repairs and more. It’s probably a good idea to engage a tax agent to make sure you include all deductions. You can also claim a deduction for the fee you pay the tax agent.
Contact our team today if you need assistance completing your individual tax return - we’d love to help out!