July 2020 is Tax Time in Australia

What Can you Deduct against your Tax this year?.

These are a few reminders for the rules on common tax deductions.

Vehicle and travel expenses — If you use your car for work or work in different locations, then you may be able to claim a deduction. This does not normally include the cost of travel between work and home.

Clothing, laundry and dry-cleaning expenses — To claim the cost of a work uniform, it needs to be unique and distinctive. For example it contains your employer’s logo, or is specific to your occupation, like chef’s pants or coloured safety vests.

NOTE:  A question for those of you who have been working from home due to the COVID-19 situation, and who normally claim a laundry expense; “Do you wear your work uniform at home?”  If not, do NOT claim the laundry expense for it.  And if you do wear it at home, WHY?

But, you can now claim a rate of 80 cents per hour for all your running expenses, for the time that you worked from home, during the period from 1 March to 30 June 2020.

Self-education expenses — If the study relates to your current job, you can claim expenses like course fees, student union fees, textbooks, stationery, internet, home office expenses, professional journals and some travel.

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Tools and other equipment — If you buy tools or equipment to help earn your income, you can claim a deduction for some or all of the cost. Examples include protective gear, including sunscreen, sunglasses and hats if you work outside.

For more information, please look at: moneysmart.gov.au/…/lodging-a-tax-return

You can lodge your return using myTax, the ATO’s free online tool. You need a myGov account linked to the ATO to lodge online. Returns lodged through myGov are usually processed within two weeks.

** However, as most information in your tax return is now filled by the employers, government agencies or the banks etc., and may not be supplied until mid-August in some cases, it may be best to wait until you see that everything is in, before you submit.

The MyGov account can be accessed at: https://my.gov.au/

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