Happy End of Financial Year or EOFY (well in Australia anyway!)
It’s that time of the year yet again! TAX TIME!
Disclaimer – I’m no Bookkeeper or Accountant, so for all of the info below, please speak to your Accountant first to make sure you are able to claim these expenses. I did, however collect this information from reputable sources, including the ATO.😄
So, What Can I Claim?
Your Home Office
- Office furniture
- Software subscriptions (Microsoft word, Adobe, Photoshop etc)
- Printing and stationery
- Phone calls and internet use (keep a record of these, bills are good)
- Electricity and gas expenses, Home insurance, Water, Cleaning costs (just be careful with these as they can attract Capital Gains Tax when you sell your house, if applicable)
- Just to name a few
Temporary Full Expensing (TFE for short) allows businesses to deduct the full cost of eligible capital assets from their profit for the year, rather than depreciating the cost over several years. This finishes at 30 June 2023. Check with your accountant however.
Using TFE, businesses can immediately deduct the full cost of eligible purchases of capital items including:
- Fixtures and fittings (such as shop or café fit-outs)
- Technology, such as laptops, computers, EFTPOS systems and security equipment
- Tools, plant and equipment
- Office furniture
- Motor vehicles such as utes, delivery vans and most cars (excluding cars costing over $64,741 for 2022/23)
Upskilling, Courses and Memberships
- Course or tuition fees
- Books, journals and subscriptions
- Student amenity or union fees
- Stationery and printing
- Internet and training software
- Study-related travel (but not from home to your course)
- VA Directory Membership.
- – (There is a special relaunch price on right now which can be used as a tax deduction this year. Be Quick)
You can use super contributions to reduce your taxable income. When you’re self-employed and making personal contributions, it’s really important to note that if you want the earnings you contribute to super to be taxed at 15% instead of your marginal tax rate, you have to claim your contribution as a tax deduction. Please speak to your financial advisor before doing anything. The Government will also co-contribute $500 if you put in $1,000 yourself. Conditions do apply.
Any donations over $2, made to a verified not-for-profit organisation, are tax deductible.
- registered charities
- registered political parties or candidates
- tax-exempt religious organisations
- any token items you’ve bought such as lapel pins, wristbands and stickers
- bucket donations: These are collections conducted by an approved organisation for natural disaster victims. Note: you can claim a tax deduction for gifts up to $10 without a receipt.
Being self-employed or a sole trader is hard enough without having to stay on top of your finances, which is why it can be worth getting someone to do it for you. If you do use a tax accountant/tax professional to sort you out at tax time you can claim for the service. You can also declare your travel costs for getting to and from the appointments.
Keep Your Receipts
Under tax law, your records must explain all transactions and be:
- in writing either on paper or electronically
- in English or in a form that we can readily convert into English
- kept for five years (although some records need to be kept longer).
As I mentioned above, I am NOT an accountant. This is simply a short guide, so check with yours first and for any additional expenses you can claim.
Until next time ..