A handy guide about various tax deductions by the experts
Paying tax in Australia is necessary if you are earning income from any source. However, you are permitted to claim deductions for expenses incurred during working. Also, you should submit proof regarding work-related deductions. But for this, you have to meet some criteria and the expenses must relate to the job. This makes the task complicated for you that’s where you may need expert assistance. Hence at Kirpa Tax Accounting, we provide you guidance on occupation specific deductions for comprehensive understanding. This would certainly help you to file an accurate tax return and to claim applicable deductions.
Business grants Victoria
The government of Victoria in Australia offers grants as cash awards to motivate businesses. These grants come directly from government and local councils for eligible businesses. Most small businesses are supported by the government in the form of low-cost advisory services. Hence, you may be eligible for a grant in specific circumstances such as exporting, research, and development. However, Victoria business grants received are taxable and you should mention it as quantifiable income on your business tax returns. We provide you insights on non-taxable grants which fall under the non-exempt income category.
Self study expenses
If you are studying and it is directly linked to your work, you can claim expenses related to it. You should undertake the course which must encompass formal qualifications to meet the below criteria.
- It must improve the skills you need in the existing job/occupation
- It should result in or likely to boost your income
However, you are not eligible for tax deductions if your education program is not connected to your current job. But you can claim below-mentioned self-study expenses such as:
- Accommodation expenses subject to overnight distance from home
- Declining value of depreciating assets you are using
- Paid fees for courses and tuition
- Parking fees paid at training venues
- The cost incurred for stationery and textbooks, etc.
Deductions on work-related tools
Deductions are applicable on the cost incurred for tools and equipment related to your work. If the tools are used for both work and private uses, you need to divide the claim. Generally, the cost of the tool determines the amount of deductions you can claim.
- You can claim a deduction on items that cost less than 300 AUD or less and are not a part of the toolset
- You can claim a deduction if the cost of tools is greater than 300 AUD and from a part of a set
- You are also permitted to claim deductions on repair and insurance of tools
The final words
Anything you spend to earn an income can get into the category of tax deductions. It is referred to as a legitimate claim and you are entitled to get tax advantage. Consult with Kirpa Tax Accounting if you find it complicated to understand your tax deductions eligibility. We are the experts to provide you with guidance on occupation specific deductions. So, reach us now and discuss your tax planning for the best savings.