Many Australians lose hundreds of dollars each year – simply because they forget about work-related deductions and the receipts for items they can claim.
Do you compare your tax refund to your friends and family and wonder, “What can I claim to get a better refund when I lodge my tax return”?
There are many ways Australians can improve their tax refund. Unfortunately, millions of dollars are left in the hands of the ATO every year. That is money lost by taxpayers who simply didn’t know how to complete their tax return in the best way. It’s like giving away a charitable donation – to the ATO!
But you can avoid that and keep the money you deserve.
The first, best strategy for getting a better tax refund is good, simple records of what you spent (for spending that’s related to what you do for a living).
Be careful though! Don’t add fictional or inflated claims to your tax return. We all need to pay tax to keep the country going, but we can still get a better tax refund by getting the tax return done right. The ATO has very clever technology to find dishonest tax returns, don’t let this be you.
Most taxpayers use a tax agent like Etax to help them get a better tax refund AND avoid ATO audits. Even if you use Etax, the tips below will help you get a better tax return done, and help get it done fast.
Ready to lodge your tax return and get that refund?
It takes just a few minutes online, with live online support to help boost your refund.
How to make tax deductions simple:
Etax has an automated deduction-finder that helps you find the deductions you are entitled to. Your Etax return will automatically suggest deductions like the ones below, when they are most relevant for you.
10 best tax deductions for the best tax return
Here are 10 of the most under-claimed (but legitimate) tax deductions:
1. Car expenses
Often forgotten, work-related car costs add up quickly so don’t leave them off your tax return. But, don’t get carried away with car expense claims. Be honest – if you drive a lot or regularly for work, the deduction for car expenses can really get a better refund for you.
- NOTE: Your journey to and from work cannot be claimed, unless you must transport bulky equipment that you cannot leave at work.
Read more about car expenses:
Car tax deductions guide | Car logbooks explained | Download a car logbook
2. Home office running costs
Here’s a deduction that gives you a much bigger refund, if you qualify to claim it. Do you regularly perform your work duties at home? Do you have additional expenses as a result? If so, read more about home office expenses here.
3. Travel expenses
Include the costs of any work-related travel and/or accommodation. If you receive an allowance from your employer, you must include this amount as income on your tax return. Always keep good records, such as a travel diary, and all your receipts for your travel expenses.
4. Laundry
Only if you wear a company-branded uniform for work, you can claim up to $150 per year for laundry expenses without even having receipts. If you have proper receipts, this deduction can be even better.
5. Income Protection
If you pay for income protection insurance, outside of your Superannuation, you can claim the cost of the insurance premium as a tax deduction.
6. Union or Membership Fees
If you’re a member of a union or a professional body, you can claim those registration fees.
7. Accounting Fees
If you paid a tax agent to prepare your tax return last year, make sure you include the fee you paid; it is a tax deduction this year!
8. Books, journals and digital information
These are expenses very few people realise they can claim. Always include educational and trade publications, print or digital, directly related to earning your income in your tax return. They can really increase your tax refund.
9. Technology
Claim depreciation on your computer when you use it for work. Your tax agent will help you work this out, as it’s a little complicated. Plus, for a bigger tax refund, remember to claim the work-related percentage of your home internet use and phone expenses on your return.
10. Tools and equipment, including protective items
If you buy and repair items needed to do your job, such as non-slip healthcare shoes, overalls, measuring devices, stationery etc. you can also claim these as tax deductions.
Keep one simple diary for everything work-related. This is very helpful for home office, laundry, supplies and tools. Your diary helps you to calculate and prove the work-related amounts on your tax return. Your diary can be a simple list with a description, date and amount for each item – plus keep the receipts tucked into your diary – you’ll know just where to find them when you do your tax return.
Improve Your Tax Return with Simple Record Keeping
If you want to get the best tax refund every year, simple record keeping is the trick. Keep every receipt for every work-related expense – even if you’re not sure if you can claim them.
Here’s a guide on easy tax record keeping guide to help you.
Getting the best tax refund and avoiding ATO trouble isn’t easy on your own.
That’s why we’re here! At Etax.com.au, it’s our job to help you claim the maximum possible deductions, to get the best tax return result that you’re entitled to.
It’s no wonder that most taxpayers use a registered tax agent like Etax.com.au to prepare their tax return.
Ready to lodge your tax return and get that refund?
It takes just a few minutes online, with live online support to help boost your refund.