Deductions and their advantagesDeductions claims can be an advantage to you and one of the easiest ways to boost your tax return.

When completing your tax return, you are entitled to claim deductions of some of the expenses you incurred, but must be directly related to the earnings of your income.

To claim a work-related deduction, you need to:

  • Spent the money from your pocket and were not reimbursed.
  • Directly related to earning your income.
  • Have a record to prove the expenses.

Car and travel costs deductions, are expenses that a lot of people claim in their tax returns. However, taking a guess at the amount of the expenses can land you in trouble, as it can be under an illegitimate claim like travel to and from work.

That is why it is important to ensure that you are only claiming a deduction that can be considered as travel expense in the eyes of the Australian Taxation Office. Proper claiming of these expenses can save you a lot of money so it is worth getting it correct.

If you do use your car for work, claimable travel and vehicle expenses can include the following:

  • Depreciation
  • Registration costs
  • Insurance costs
  • Costs of running like fuel, oil, and servicing

If the expense was from both your work and for your private use, you can only claim a deduction made for the work-related section.

If the expense was related to voluntary work, you cannot file a claim for that deduction.

There are a lot of complex deductions that you can claim to help to reduce your taxable income. One way to ensure that you are claiming all the deductions that you can, is by getting  professional help. We know the ins and outs of the tax system and we can help you maximize your tax returns.