As June 30th draws closer and the end of financial year looms on the calendar, now is once again the time to prepare for that annual meeting with your trusty accountant. Whilst you might think that tax deductions are the exclusive domain of high flyers and big business honchos, anyone who works for a living (i.e. salaried employees) is entitled to claim them. Whether it’s been a particularly busy or expensive year for you with work-related expenses galore, or just the regular course of events, it never hurts to collect those receipts you’ve been diligently stuffing away in a shoebox and get something back from the taxman. To help you get tax fit for FY 2017-18, we’ve put together two simple steps anyone can follow.
1. Collect Receipts & Track Your Expenses
The first step for getting a handsome tax return at the end of financial year is to collect all relevant receipts and track all expenses relating to your work or source(s) of income. Since Australian tax law allows the deduction of any expenses incurred in generating an income, including taking your 9-5 work home with you, this is by far your best way to bring home the bacon after June 30! Thanks to the power of smartphones, collecting receipts and tracking your expenses has been made super-easy with these nifty apps:
- Concur (Desktop & Smartphone) – A handy tool allowing you to automate your travel and work-related expenses in addition to managing invoices. The ability to take a photo of a receipt to store for later is our favourite feature.
- Pocketbook (Smartphone) – Pocketbook is a powerful personal budgeting app that allows you to track and categorise all of your spending.
- TrackMySpend (Smartphone) – Developed by ASIC, TrackMySpend does just that, helping you keep tabs on where your money goes for tax time.
2. Minimise Your Tax Liability (Legally of Course)!
Having sorted out your shoebox of receipts, the next step is to book an appointment with a qualified tax accountant after June 30 so you can make the most out of any tax deductions you’re eligible for, whilst minimising the risk of landing on the wrong side of the ATO! In the meantime, here’s a few more things you can do before the end of financial year:
- Bring forward any big work-related expenses before June 30
Big expenses like buying new work uniforms, laptops or equipment are all legitimate tax deductions, which can be instantly written-off up to the value of $20,000. Even enrolling into work-related courses or seminars can be tax deductible, meaning the possibility of extra cash in the bank!
- Claim all relevant tax deductions
Another thing to keep in mind is the large list of legitimate tax deductions available to all Australian employees, which the ATO details here. Many of these deductible expenses are generated during day-to-day employment and can include the following items:
- Education expenses (attending industry conferences, seminars, enrollment fees etc)
- Internet and mobile phone connections (a portion reflecting work-related usage)
- Home office equipment costs (computers, printers, telephones etc)
- Home office running expenses (heating, cooling, lighting, cleaning, carpet wear & tear etc)
- Vehicle expenses (fuel, work-related travel etc) (a portion reflecting work-related usage)
Need a little extra help paying for that new laptop or seminar before EOFY 2017? Or how about bringing forward some of your other work-related expenses to keep your hard earned cash in your back pocket instead of handing it over to the taxman (and no, Jimmy Choo doesn’t make steel capped boots!)? Check out our smart little cash loans from Nimble!
You should read this bit: The above post contains links to a variety of application software (“App, Apps”) that is not affiliated or associated with Nimble. We do not have any control or responsibility over the content of the Apps. Use of the Apps may be subject to further terms and conditions imposed by the App provider, the owner of the mobile operating system and/or other related parties. The above links belong to a variety of websites and not Nimble, so clicking on, and using them, will take you away from Nimble’s website meaning we’ve got no control or responsibility over the content. Nimble does not endorse and is not affiliated or associated in any way whatsoever to the businesses named in this blog post. The information in this blog post is general information only and does not take into account your objectives, financial situation or needs. For tax advice relating to your specific financial situation, Nimble recommends seeking the services of a qualified Australian tax accountant. The information contained in this blog is correct at the date of publication.