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Online Tax Return – Tax Refund On Spot

 It is possible to deduct expenses you have incurred in the course of your work in the capacity of an employee. The expense is incurred in a tax year when:

  • You receive a statement or an invoice for an expense you are responsible for and have to pay (even when you aren't able to pay it until after the close of the year in which you earn income) or
  • There is no bill or an invoice, but you're debited and pay for the cost.


The expenses are:

  • vehicle expenses, which include maintenance and fuel costs
  • travel costs
  • costs for clothing
  • education expenses
  • union fees
  • telephone and home computer expenses
  • the expense for equipment and tools
  • journals and trade magazines and trade.

It is also possible to claim deductions for certain expenses that aren't related to work. They include:

  • Interest and dividend deductions on investment
  • Deductions for gifts and donations
  • Deduction for the expense in managing tax issues.

Tax on goods and services

If the expense you are paying for includes the amount of tax on services and goods (GST) The GST is a part of the total cost and therefore a deduction. In the example above If you paid union fees of $440 that included a GST of $40 You can get a tax deduction of $440.

Foreign employment payment summary

If you've received an PAYG payment summary that reflects overseas employment, all deductions you're eligible to claim on behalf of the earnings in the payment summary should be claimed at the D1-D6 items in the event that they are relevant.

All deductions for foreign currency are required to be converted (converted) into Australian dollars prior to you completing the form. If you want to know more about what to do to translate foreign tax deductions, you may contact us for details on the exchange rates.

Basic rules

The expense should not be domestic, private or capital-based in the sense that it is capital in. Examples include the cost of regular transportation to and from work as well as the cost of lunch every day are considered private expenses. If you have incurred an expense that was related to work and also private or domestic it is possible to claim an exemption only for the portion that was related to work cost.

If you have incurred the cost of an item that is capital-based in nature, you might be eligible to claim a deduction on the decrease in the value of the depreciating asset you purchased.

You are not able to claim an expense deduction in the event that:

  • Someone else paid for the expense, or you were or are, being compensated for the expense and
  • The reimbursement or payment is an element of fringe benefits (including the exempt benefits).

If you received partial reimbursement for the cost You can only claim the portion not reimbursed.

Keep track of expenses related to work.

You should be able to prove your deduction claims by providing written proof when you believe that the amount that you claim is more than $300. Your records must show the entire amount, not only the $300. The $300 amount does not include meals and car allowances and award travel payments allowances and travel expenses. There are particular written proof guidelines for these claims, which are explained in the relevant sections.

If the amount you're claiming is less than $300 then you must demonstrate how you came up with your claim, however, you don't need to provide any written proof.

Allowances

If you have received any allowances on tax returns, you might be eligible to take a tax deduction on your expenses covered by that allowance, but only to an extent that you actually paid for the expenses to earn your earnings from work and that the fundamental rules discussed earlier on this page are met. For instance that you receive the allowance for tools at $500, and your expenses for tools were $300, you can include all that you received on the tax form. Then, you can claim an amount of $300 as a deduction on item D5.

Value decrease of an asset that is depreciating


Depreciating assets are an asset that has a finite time of use and can be expected to lose value as time is in use. These assets can be classified as reference books, tools computers, and office furniture.

The decrease in the value of a depreciating asset can be calculated using its life span. You may either create your own estimation of its life span as well as use the commissioner's life estimations

It is possible to claim a deduction immediately to the full amount of depreciating assets that cost $300 or less, provided that certain conditions are satisfied.

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Location: Perth WA, Australia

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