Tax Return Deductions

When finalising your tax return, you have the right to claim tax deductions for some expenses that are directly related to your accessible income. 

So, it pays to make sure that you are claiming all deductions you are entitled to. The ATO also has an extensive checklist of possible tax deductions that may be available in your occupation. These tax deductions have given many Australians a chance to enhance their tax refunds come tax time.

Things You Can Claim as Deductions

Remember the first rule to claim a deduction for a work-related expense:

  • You must have spent the money yourself and weren’t reimbursed
  • It must be directly related to earning your income              
  • You must have a record to prove it (usually a receipt).

With Tax Time 2020 underway, here are some overlooked tax deductions you should know. 

Are you a Performer or musician?

If you are a musician, actor, magician, dancer, or circus performer, there are all kinds of deductions that you might be able to claim.  Examples are non-conventional clothing and travel carrying heavy and bulky equipment. As long as you live from the stage, a new world of claim possibilities opens up. 

tax deductions related to health and fitness

Gym Membership

Although ATO has strict rules about tax deductions related to health and fitness, some people are entitled to claim memberships. Examples include professional athletes, members of the special forces, and more. However, one can only claim a tax deduction for a gym membership if the employee can demonstrate that strenuous physical activity is an absolute essential and regular factor of his or her income earning activities and that the costs were directly incurred to maintain a fitness level WELL ABOVE the profession’s general standard.

Home Office Expenses

If you are one of those people who check and respond to your work phone or email on the weekend, you may be able to claim the cost of using your home phone or laptop as a tax deduction. 

ATO allows everyone who has to work from home to claim part of their expenses. However, like claiming mobile phone, internet etc, you MUST keep records, including a Diary.

Tax Agent Fees

If you hired a professional registered tax agent to complete your 2019 tax return, you can claim a deduction for their fees. You can also claim tax deductions for any travel expenses you incurred getting to and from your Tax agent.

tax deduction on tax agent fees

Income Insurance

If you pay for income protection insurance, those amounts are deductible. Keep in mind that those don’t include trauma insurance, life insurance, or critical-care insurance. 

Do any of these tax deductions apply to your situation? Are you managing your tax return properly? 

Although they seem insignificant, when added together, all these deductions could save you money.