Filing taxes is a lengthy process. With all the tax and accounting services available at your reach, you’d be able to gain an inclusive idea about what to get help for. Did you start a business and need to file a tax return? Or do you need advice for managing your funds? Whatever your cause may be, expert advice of RT taxation takes you in the right direction.

An RT taxation service comes with services ranging from tax returns to investment management. With the evolving market, one needs to understand their position. Moreover, RT taxation services make sure you manage your finances and the paperwork perfectly!

The services provided by R T Accounting and Taxation services are:

• Tax Returns
• Business Tax and Advisory
• Outsourced CFO Services
• Self-managed super funds
• Home and investment lending

1.Tax Returns:

Individuals generally file tax returns, business entities, and companies operating in the market. For the people of eastern suburbs of Sydney, R T Accounting and taxation services provide reconditioning to sole traders, trusts, multinational companies, partnerships to help them minimise the tax obligations that are to be included in the tax return files.

Besides that, R T accounting and taxation services provide expert advice on saving money and utilising them to create a tax return profile. The importance of client profile is very high at RT accounting and taxation services; hence a client is given full preference about filing the tax returns in a much convenient way.

How are tax return services provided to clients?

The tax return service, as mentioned earlier, is given based on what a client prefers. The services are:

• Personalised services: These services are provided about the personal requirement of the client. All the personal details that a client wants help with is duly provided in such a service.
• Expert advice: do you often struggle to make decisions on your own? Specialist advice is always there to help you get the best output of your decision, including allowing you to take one.
• One-on-one attention: These kinds of services are specialised to individuals who need one-on-one attention to specific details during the procedure of filing tax returns.

Therefore, having your tax returns completed by certified accountants will ensure that you get to be at the top of your game. With the expansion of the industry, the experts from RT accounting and taxation services will help you understand substantial deductions.

2. Business Tax and advisory: 

R T Accounting and Taxation has had many business clients and is an expert in their field of work. Handling many challenges for years has made them understand the steps needed to be taken in different situations.

Business and its strategies are often pretty tough to grasp. With the experts standing by your side, you won’t have much trouble making a solid decision. In other words, a solid decision is the foundation of a good business venture. From helping to understand the market you’re targeting to maximize profitability, R T accounting and taxation help establish businesses.

Some of the Business Tax and advisory services one can expect to get:

• Helping to create a structure for your business and increase the net profit
• Tailoring strategies for the company, such as tactics to expand the business, make notable investments etc.
• Helping to review business, figure out areas of potential growth, and build a detailed framework for the business structure.
• Identifying the potential business risks and the way to manage the loss.
• Managing cash outflow of the business venture and planning a drive to take it forward.
• Understanding the competitors and the targeted market.

3. CFO services:

How wonderful would it be if you get a bit of personalized advice for the external financial process that includes financial business and management? The outsourced CFO services by R T accounting and taxation is a popular service that adds significant value to one’s business venture. The services include transaction processes, management analysis, and reporting, and services related to the company secretariat.

Having all the service at your reach will ensure to achieve the best results business-wise. Therefore, Outsourced CFO services are great bearers of successful operation service experience, which is why you’d have to lay back and relax. At the same time, the work is being done for you.

The outsourced services are:

• Building the foundation of the company; management and setup
• Management and accounting
• Reporting
• Packaging of the payroll and remuneration
• Cash flow management
• Company maintenance services.

4. Self-managed super funds:

Super funds are preferred by almost all citizens of the eastern suburbs. While one gets access to the super fund in the later stage of their life after employment, maintaining it for an extended period may often come off as daunting. Self-managed super funds services by R T accounting and taxation ensure running up your super fund in an efficient way.

Furthermore, the company’s employers make sure that a specific amount is being added to the super fund every month. But what happens when you shift jobs? The hassle to shift your super funds is tedious. Hence, R T accounting and taxation services have a package that will help make your journey with your super fund much more convenient and accessible.

The package includes:

• Tax return services
• Year round support for maintaining, adding and shifting the super fund if necessary.
• Financial statements
• Maximum efficiency in minimum time by assisting with the online portal
• Secretarial services for the self-managed super funds’ trustee.

5. Home and investment lending:

Who doesn’t want a safety net for investment lending? R T accounting and taxation services provide service to ensure that you buy your first home having a healthy credit profile. Besides the plan to buy a home, many individuals seek to invest in different companies and share. Having a good portfolio in such circumstances is not only a requirement but a necessity.

R T accounting and taxation services customize loans and structure them in tax-smart navigation. These loan structures help one to understand the specific goals and create the correct route to make investments. The objectives and planning aid the understanding of cash flow and financial plans.

In addition, R T accounting and taxation understand the financial plans and tax situation that you may have. Keeping your goals in mind, the experts in home and investment lending will discuss, draft, and create the lending requirements you ought to put.

Conclusion

Need a good sleep from all the financial problems that you face every day? RT accounting and taxation service is the right way to go. Making sure to utilize every piece of advice and take steps accordingly would help one to achieve their financial aspirations!

Paying taxes is a significant responsibility. But the more complex duty comes on shoulders when you need to calculate the assets. And also the income sources that are liable. With the paperwork and details that go with it, you might get exhausted. But thanks to the online tax filing services, that works wonders to keep the calculation in check. As most families have to file a tax return every year and others, the preparations can be super daunting. Just having an Accounting and taxation services expert by your side who can make sure you leave off no page unturned can be an excellent option to start with.

Why do you need tax preparation services?

Saving money: Accounting and taxation services, as much as you’re filing it for records. It can even help you save some extra cash with expert advice. A tax preparer will make sure you leave no credit missed. Missed credits can make you hefty. Hence you have a great chance to save yourself from saving some extra cash when you leave no room for silly mistakes.

Tax planning: The key to jumpstarting to prepare for filing the tax returns is starting early on. Tax planning can help one to understand the finances well. Moreover, unique strategies can be implemented if a planning layout is made adapting to one’s circumstances. Tax planning includes trust and estate planning, fixed asset categorization, and tax credits and incentives.

How does tax planning work? 

The simple way tax planning can work in your favour is it covers all the necessary considerations. The considerations are one’s income, timing, and size of purchases. When planning for a tax return, it’d help consider the retirement plans and investment options up to par. Complementing these factors and creating a tax return would help to create the best outcome.

Understanding the tax filing plan and process:

However, it may be, and whatever it costs one to file. Tax filing plays a vital role in creating one’s profile. The financial growth reasonably depends on how one proceeds to file their return considering all the options available to them. A clean slate planning will help prevent the risks on the streamline. 

The tax filing plan can separate into three types:

1.purposive tax plan: This sort of planning comes with a definite objective,

2.permissive tax plan: This kind of tax planning falls under the jurisdiction of the specific region or law

3.Long-range or short-range tax plan: This type of tax planning is done at the beginning or end of the fiscal year.

The purpose of tax planning is vital and the process deems to analyze the finances from the tax angle. To ensure the highest efficiency. Since tax considerations include the timing of the income and purchases. Also, including the expenditures, the process is a bit detailed and helps an individual see where they stand. Tax planning is necessary for individuals and small and large-scale businesses to keep up with their targeted market.

Saving time with expert advice: if one can buy expert advice, it can help them buy some time. That is to say, you can save plenty of time by getting tax and account services even if you stay in the eastern suburbs. 

Peace of mind: When you leave the complicated work in the hands of an expert, the stress load is cut down, and you get to relax a bit. Tax returns, as said earlier, are a lengthy calculation and need a lot of work. An expert and solemnly help you deal with it and help you get peace of mind.

Tax Accounting services: the service inclines with the business entity. Businesses need to file a tax to keep records of their income, budget and expenditure. The internal revenue of the country determines the application of tax accounting of a company. The main aim of the tax accountant is to minimize the liability of the business.

Types of tax accounting services:

Bookkeeping: bookkeeping services are fundamental to their core. The very first step to preparing the tax return of a business entity is bookkeeping. Through bookkeeping, it is easy to keep the financial statement of the money inflow and outflow of the company’s entity and other transactions. The bookkeeping service is pretty cheap. Also, preferred by most small and large business companies.

Forensic accounting: It is often compared to auditing. The central focus of forensic accounting is finding out malicious fraud. Forensic accountants’ responsibilities are to have substantial knowledge about the laws that can help them analyze the violations caused by the concerned parties. This service is often used for identifying crimes that are affiliated with finances.

The financial controller: the head of the commercial department falls under the financial controller team. Their task is giving direction to people for dealing with employees, staff, and clients. They’re the prime workers for ensuring the proper enforcement of accounting work.

The necessity of accounting and taxation services for businesses:

Depending on the structure and formation of the business, whether it’s a small setup or a large, the most necessary step for a company to boom is making sure the paperwork is due in line. 

Tax and accounting services for any business build up the foundation a company needs. The financial system of a company can be seen and optimized through the lens of accounting services. The filled information can help the business grow and outgrow from the potential areas of the financial system. Service by an expert is precisely how one can prepare their tax files and make sure they have a chance at business growth.

Furthermore, tax and accounting services provide an analysis of the total income and expenditure unit. Starting from sales transactions to maintenance and its expenses. These services make sure that when a business entity comes for help, no detail is untouched. 

Since every detail is significant and missing out any can cost one to pay hefty. Accounting services are a safer, smarter, and viable option.

Conclusion:

So what are you waiting for? Getting your returns to work out from today and get to worry less about accounting and taxation services in eastern suburbs that can be handled at a much fair cost is definitely a good deal!

Have you ever wondered if you are making the most out of your annual tax return? You may find yourself wondering if you are entitled to claim a deduction for a number of insurance premiums or products. Of course, this is circumstance tested, however, there is a chance that you can. Continue reading and find which of the five insurances you may be able to claim on your next tax return. However, the following information has been generalised, and it does not consider your individual tax and business circumstances. It is always best you discuss this with your nominated taxation professional. They are experts in helping you receive the best tax return possible. 

In general, the Australian Taxation Office does allow tax deductions for insurance premiums. However, you need to provide evidence that your insurance cover does relate to your assessable income and your role. This also means that life insurance, trauma insurance, or critical care insurance are usually not able to be claimed as a tax deduction. Income protection insurance may be allowed as a tax deduction for premiums. In fact, the ATO has allowed such claims in certain circumstances. Even though the insurance policy does not itself “earn” income for the taxpayer.

Insurances that can be claimed as a tax deduction for your annual tax return

1. Home insurance

The Australian Taxation Office states that you cannot claim a deduction for occupancy expenses. Which includes rent, mortgage interest, council rates, and house insurance premiums. This rule also applies if your employer allows you to work from home. 

However, you can claim a portion of your home insurance if you are running a business from your home. The Australian Taxation Offices states that you can claim the occupancy expenses if your home is your principal workplace. And you have a dedicated work area. Depending on your circumstance, the part of your home that is your workplace can include: 

• Office for small businesses
• A tradesperson / craftsperson home workshop 
• Doctor or dentist or any medical practitioner who has their surgery or consulting room within their home. 

To claim your home insurance, you compare the floor area of your business working space to the rest of your house. Your tax deduction will be the proportion of your working area. 

2. Personal superannuation contributions

Your personal superannuation contributions from your after-tax income can be a tax deduction if you are under 75. You need to complete some special Australian Taxation Office forms (including the s290-170) before you lodge your tax return. In addition, you need acknowledgment from the trustee of the fund. Have a chat with your professional tax accountant or bookkeeper to see how this contribution deduction can apply to your circumstances. 

3. Car insurance

If you are using your vehicle to perform your job as an employee (such as travelling between job sites and workplaces) or in running your business, or to earn income (like ride-sharing services) then you may be eligible to claim your car insurance. It is required to apportion your car expenses so you do not claim expenses that are from personal use. There are two methods to work this out: 

Cents per kilometre

You can claim up to 5,000 business kilometres per car using the latest ATO rate (please talk to your professional tax accountant for the latest rate for the current tax year). You need to be able to provide evidence of how you worked out your kilometres. With this method, the rate is calculated to an average of car operating costs (including insurance). Also, you cannot claim a deduction for a portion of your insurance premiums. 

Logbook method

Using this method, your claim is based on the business use percentage of your car. To work this percentage out, you must keep a valid logbook capturing the odometer readings for a minimum of 12 weeks. To calculate the deductible amount, the business use percentage is then multiplied by your cars running costs including the insurance premiums.

4. Income protection insurance

You can generally claim a deduction for income protection insurance if it is taken out as a separate policy from your superannuation. And you can claim the cost of the premium you pay for the income protection insurance against the loss of your income. You will need to include the payment you receive under a policy on your tax return. 

Unfortunately, if your income protection is part of another insurance product (for example, life, trauma or critical care insurance), you will only be able to claim the percentage that is attributed to the income protection. In addition, if your income protection premiums are paid via your superannuation or are deducted from your superannuation contribution then you will not be able to claim a deduction. 

5. Home insurance on investment properties

You can claim expense relating to your investment property. This is only valid for periods that it is rented or available for rent. If you’re only renting out part of your property, you can only claim part of your building, contents and public liability insurance based on the floor area calculation. The amount of insurance you can claim will be in line with the proportion of rented out space. 

6. Travel insurance

Travel insurance costs are generally for private use, and therefore not tax-deductible. 

In conclusion

Tax time can be stressful and cause a lot of confusion for everyone needing to lodge a tax return. When thinking about insurance premiums, it can be overwhelming to navigate what can be claimed as a tax deduction – especially when there are so many different circumstances that need to be adhered to. Especially for those who work from home or use their own personal vehicle for work purposes. As a result, taxpayers are making simple mistakes when they are claiming tax deductions for insurance expenses. Our Australian income tax system is based on self-assessment. This means that you are accountable for being accurate, and all amounts that you are claiming must be backed up with the correct evidence and bookkeeping.

This evidence is required when you are audited. Records can include receipts for equipment or asset purchases and sales, expense claims and repairs; payment summaries; sufficiently detailed bank statements; contracts; and tenant rental records. Also includes car logbooks. If you’re unsure about which insurance premiums you can make a tax deduction, then give us a call at our Eastern Suburbs tax accountant practice. We work effortlessly to understand and simplify all the tax rules for you and explain what your business can be eligible for. RT Accounting and Taxation Service can help you focus on your business while you leave the boring tax stuff to us. We want you to have the confidence to run your business while our tax experts work on ensuring you are up-to-date with your tax requirements. 

Claiming tax deductions without receipts is a risky move. As the ATO has gotten more efficient data matching software to track any movements. And so it is harder for the ATO to enforce stricter guidelines. However, in some cases, it is ATO to claim tax deductions without receipts. Let us delve a little deeper into the subject of what can you claim on tax without receipts and try to avoid the ATO’s troubles.

Tax deductions are the primary way in which you can improve your tax position. After all, the role of a tax deduction is to reduce your taxable income. The lower taxable income you have, the lower tax you will pay at the end of the Financial Year. Along with that, deductions add a degree of fairness to the whole tax system; if you have spent money out of your own pocket which had a correlation with how you earn a living. Then it seems fair that you should get something back for that.

To make it clear, the ATO prefers that you hold a receipt for every expense that you have purchased. And want to claim as a deduction on your tax return. But we are all human and sometimes we tend to forget things, including keeping a tidy track of receipts we have purchased throughout the year. So, what happens if you do not have the receipt? What if you lost it? What if it is so faded that you possibly cannot read it?

It is still possible to claim these expenses, even without a receipt!!

There are serious restrictions on claiming a tax deduction without a receipt, however, it is still possible to do so.

Firstly, the expense must be an allowable deduction. What does this mean? This means that you should be able to confidently answer yes to the following three questions:

• Is this expense directly related to and required for you make a living?
• You have paid for this expense out of your own pocket?
• You were not reimbursed or paid back this expense by your employer or client?

If you can say yes to the above three questions, and you paid for the expenses using your credit card or debit card which shows the transactions for the item or items you have purchased, then the ATO can sometimes accept the deduction. As always, you should try to not get yourself into that situation, because we have seen cases where on audit, the ATO has not allowed this to suffice and the client had to pay extra money to the ATO.

What tends to happen in some cases is that a taxpayer has purchased some personal items and some work-related items in the same transaction, which makes audit a difficult task for the ATO if going by the bank statement purely. There needs to be a way to distinguish between the work expenses and the personal expenses, so it is often wise to pay for work related items and personal items separately in two different transactions.

Common Items That You Might Be Able to Claim Without A Receipt

1. Membership Fees or Union Fees

If these costs have been deducted from your employer, to begin with, these will be reflected on their Single Touch Payroll report when they send it to the ATO at the end of the year. This will be available on your MyGov account, or available to us on our prefill report when we lodge your tax return.

2. Fuel with a logbook

If you keep a proper logbook for a minimum of 12 consecutive weeks, then it is possible to use the work-related kilometers you have traveled along with the fuel capacity of your car and the average fuel rate throughout the year to include a fuel deduction in your tax return. We can happily work this out for you.

3. Fuel without a logbook

The easiest deduction to record without receipts. The ATO will allow a claim of 68 cents per kilometer, up to a maximum of 5,000km. However, this must be reasonable with however many kilometers you have traveled for work-related purposes – not including kilometers traveled between home and work.

4. Computer Items

Generally, you are not going to pay for computer items with cash. This will be paid on a credit or debit card, so when you purchase the laptop, make a note on your bank statement at the time of purchase as it will be easier to locate and then use as evidence as proof of purchase. It will also help if you take a picture of the packaging of the computer as that will have the price.

5. Stationery

Again, as we move into a cashless society, the use of bank statements as proof of purchase is going to increase, so it would be wise to note the date and time of purchase against the transaction in the bank statement, as well as taking a photo of the items.

Excuses the ATO Will Not Accept as Proof for Deductions

It is important to note that there are some forms of evidence that the ATO will never accept when you try and claim a tax deduction without a corresponding receipt. These include:

• Paying for something using cash. This is not a reason for not having a receipt as far as the ATO is concerned. The ATO will straight away disallow your deductions. For sole traders, paying your employees or contractors in cash is ILLEGAL regardless.
• Having an item with the price tag still on it, but no proof of purchase. In this case, the ATO does not know WHO purchased the item, so it could be your brothers’ item which you are borrowing/using, which you did not actually pay for. This will not suffice to the ATO, so it is important to keep proof of purchase.
• A catalogue or advertisement with the price of the item listed, but no physical evidence as proof of purchase. Once again, the ATO requires the purchase as anyone could have bought that item.

How Much Can I Claim Without Receipts?

The ATO generally says that if you have no receipts at all, but you did purchase work related items, then you can claim them up to a maximum value of $300. However, even if you claimed less than $300 you should be ready to explain what it was, how you paid for it and how it is related to you earning an income.

It is easy and important to keep receipts throughout the year, so you never miss out on your entitlements come tax time. A simple way of keeping track of your receipts is to file any work-related expense receipts in a folder and hand it to us to go through at tax time. That way, we can help you deduce what is an allowable deduction and what is not, along with making sure you maximise your refund and are given the deductions you are entitled to.

If you are in any doubt as to a receipt keeping method, please get in touch with the tax experts at R T Accounting & Taxation Services, and we will do our best to help you maximise your refund.

Healthcare expenses can have a toll on us. Although healthcare in Australia is subsidized, and you can get treatment for cheap, certain costs aren’t subsidized or supported by insurance claims. In order to make life easier for you, you can claim these medical expenses as tax deductions. 

However, tax deductions in Australia are relatively technical. There is a lot of paperwork involved. Even the slightest mistake can lead to our deductions being rejected and a lot of legal trouble. To make matters easier for you, we’re going to discuss when can you claim medical expenses on your tax return and how to claim them. Let’s begin!

Tax Return on Medical Expenses:

A tax return must be submitted for certain Australians and Australian residents if they’re eligible for any deductions or surplus. You need to submit adequate documents along with your tax return to receive these deductions in time.

In the case of medical expenses, tax deductions are available in three categories. These include disability aids, aged care, and attendant care. 

Types of Tax Deductions on Medical Expenses:

Disabled Care:

For disabled people, tax deductions are available on any product that’s catered for your disability. These include things such as a walking stick, aid dogs, hearing aids, and other similar equipment and tools. 

TheIn order to lodge a tax return on your health-related deductions, you have to be suffering from your condition for a minimum of six months or more. Furthermore, you have to fulfil specific criteria to be eligible for these refunds. For example, if your situation prevents you from working in certain fields, or if the problem is persistent in every condition. 

For example, suppose you have a vision impairment that can’t be corrected by glasses. In that case, you’re eligible for tax deductions on any equipment you buy for your aid. These include medication, glasses, guide animals, etc. 

However, you’ll only receive deductions on equipment based that help your disability. Regular household appliances and equipment won’t be taken into consideration for tax deductions.

Attendant Care:

If you have an attendant to help you with your day-to-day life due to your disabilities, you can get a deduction based on your attendant’s costs. Attendant cares refer to home nursing and maintenance, regular medication, and domestic services that you can’t perform due to your disabilities.

However, these services are only available for blind or bedridden people due to any disease or disability and don’t have anyone to help with routine household tasks.

Aged and Elderly Care:

For elderlies who require medical attention, they can get a registered aged care provider. The cost of the care provider and other costs can be eligible for a tax deduction as well. You can apply for deductions for costs such as care providers fees, additional service and accommodation costs, additional service charges, etc.

However, suppose you have a personal care subsidy or receive services under a grant or bond. In that case, you won’t be eligible for any tax deductions on your fees.

In order to be eligible for tax deductions, your aged care provider has to be registered and approved by relevant authorities. Furthermore, you have to be eligible for aged care under the Aged Care Act of 1997.

How Much of Your Medical Expenses can You Claim as Tax Deductions?

Although you can claim deductions for a specific part of your income, you might not be eligible for the entirety of your medical costs. Certain factors such as your family income, your investments and savings, superannuation, etc. are taken into consideration before you’re eligible for tax returns. 

You’d generally receive a higher if your adjusted taxable income (ATI) is less than 90,000 per year. In case of expenses higher than 90,000, check the tables for details:

For Whom Can You Apply for Deductions?

While you can apply for tax deductions for your own medical expenses in your tax return, there are certain situations when you can also ask for tax deductions for certain people in case you’re paying for their treatments. The list of people you can apply for deductions for are:

• Yourself
• Your spouse (married or separated)
• All of your children and/or stepchildren under the age of 21
• Any children under the age of 21 that’s under your custody whose ATI is less than 1,786AUD
• The student under the age of 25 who’s under your custody and has an ATI of less than 1,786 AUD
• Any care receiver under your supervision under the T6 listing in your tax record.

When can you claim medical expenses on your tax return?

Now, let’s answer the all-important question, when can you claim medical expenses on your tax return? Generally, you can claim medical expenses once the tax period is over. Once the fiscal year ends in Australia, you can apply for a tax return. 

When you’re applying for a tax return, you can simply add your medical expenses along with it. However, you have to be eligible according to the rules and regulations of the current taxation laws.

Conclusion:

Since tax returns are already complicated, and medical expenses are a recent addition to it, it’s understandable that you might find it challenging to pay tax returns for medical expenses. In order to make you understand the technicalities of taxes and help you understand when can you claim medical expenses on your tax return in eastern suburbs, we’ve discussed everything you need to know. We hope you find this helpful!

Paying taxes on time is an essential part of our civic responsibilities. The amount of money we pay as taxes comes back to us in benefits and welfare activities. For this reason, it’s important for every eligible citizen to pay taxes. However, to make sure taxes aren’t too hard for you, you can get certain tax deductions. So, you must know what tax deductions are available in Australia.

Tax deductions are certain cashback you get while paying taxes. There are some fields of work that are subsidized by the government. If you work in those fields, you will get a certain amount of your taxes paid back to you. 

In this article, we will discuss what tax deductions are available in Australia and how to avail them. Let’s begin!

What Tax Deductions are Available in Australia?

The tax deductions you’re eligible for in Australia include:

Non-Resident Taxes:

Suppose you’re a foreigner residing in Australia. In that case, you have to pay taxes at an amount higher than the amount for an average citizen. You have to file a tax return for any amount of money you make in Australia as a non-resident. 

However, once you receive your residence, you can ask for tax deductions. You have to provide proof of your payments. You’d get a certain amount of deductions based on your previous expenses and tax returns.

Home Office:

The once-in-a-lifetime pandemic has forced us to things that we weren’t used to before. These include shifting all our regular office affairs to our home and conducting all our necessary office work from home. 

Making your home office can be a daunting task. There are many expenses involved from furniture to electronics and technology, which might be hard for small businesses to bear. To make matters more comfortable for you, the Australian government is providing tax deductions on any home office-related expenses.

However, this expense is a bit technical. You’re only eligible for deductions on things that you can only use for home expenses. For example, furniture like tables and office chairs and the cost has to be within 300AUD. Regular household expenses such as the internet, rent, mortgages, etc. aren’t considered eligible for tax deductions.

Travel:

If your work requires you to travel a lot, you can get tax deductions on your travel expenses. However, this deduction is only available for long-distance travels you make for your work. Personal trips, trips to and from regular workplace to home aren’t considered eligible for any sort of deductions.

However, you need to provide actual proof of your expenses. These include tickets, travel plans, travel logs, etc. You might also need to show evidence that the trip was for work with documents from your workplace.

Education and Training:

Sharpening up your skills is a must for excelling in your field of work. The best way to master your skills in the field of work is through training. You can gain many kinds of training for work, and receive tax deductions for it.

However, suppose your training is funded by your workplace or is exclusive to your workplace, and it’s employees. In that case, you won’t receive any tax deductions on it. If you receive your training based on any scholarship or grant, you might not receive a tax deduction either.

Clothing and Uniform:

If you’re wondering what tax deductions are available in Australia, the most prominent tax reduction you can apply for is tax deductions for work-related clothing, and it’s maintenance. 

If you have to buy specialized clothes for your area of work, or for your safety, you can apply for tax deductions on these clothes. These include uniforms of your workplace, protective gear such as gear and boots, costumes, etc.

However, suppose you have to buy generic clothing that can be worn outside your field of work. In that case, you won’t be eligible for deductions. For example, a simple suit won’t be available for deductions. Still, a suit with a company logo will be eligible for deductions. 

Not only for just purchasing your clothes, but you’d also receive deductions for the maintenance of your clothes. Maintenance such as regular washing and repairing. If you need to wash your clothes from the laundry, you have to show documents such as laundry receipts as proof. If you wash these clothes at home, you need to keep track of how many washes you need and the money spent is washing.

When it comes to protective equipment, you’re eligible for tax deductions on any protective gear you buy for your work. However, if the equipment is provided or partially funded by your workplace, you won’t get any deductions.

Charities and Donations:

As a part of their social responsibility, companies generally provide donations and organise fundraisers to help different social causes. You can be eligible for deductions based on your contributions as well.

So, what tax deductions are available in Australia based on donations? Generally, if you have to pay any amount of tax on your donations, the tax will be returned to you. However, you won’t get back any money you pay as donations directly. 

Investments:

The income you receive from investments is eligible for deductions as well. Investment income generally refers to an interest, grants, dividends, etc. from properties, partnerships or businesses you own.

The income you gain from investments is generally taxed beforehand. So, you won’t have to specifically pay taxes for these investments again.

Conclusion:

Tax deductions are a great way to reduce the burden of overwhelming taxes on your shoulders. They make taxes more affordable and save you from the burden of excess taxes. However, you have to know about deductions before taxes to make the best use of them.

The most important factor when it comes to tax deduction is knowing what tax deductions are available in Australia. In this article, we’ve discussed some of the significant tax deductions to help you in tax time. We hope you find this article helpful!

Your dream property purchase may be within reach if you can save more on your taxes. Don’t know how to save on your taxes? Keep on reading for some tips to help you in tax savings. 

When you’re self-employed in Sydney, your income may differ from month to month. Not only are you trying to build a business, but you’re also juggling your marketing, cash flow, product and service fulfillment, and taking control of your tax filings. Saving for a home when you’re self-employed can become a real challenge. And if the saving part isn’t hard enough – trying to get a home loan when you’re self-employed is also difficult if you cannot show lenders that you have a history of saving.

When you are self-employed, you may be able to claim income tax deductions for expenses that are related to your business. Every little tax-saving and deduction will accumulate towards a deposit for your new home. There are a wide variety of expenses that can be claimed; however, it is always best you take guidance from your tax accountant/tax professional or bookkeeper. Your tax accountant can help you navigate what claims you can and cannot make. 

A lot of small business owners are letting their tax deductions fall through the cracks. We have outlined some tips that can help you boost your savings through tax deductions. And how to utilise your taxes to benefit you when you run your own business and are self-employed. 

1. Separate your tax savings account

Once you are self-employed, it is important that you separate your tax savings account from your main business and personal account. You should have an account for your tax savings, one for business transactions, and one for your personal use. When you have different accounts, it helps you and your tax accountant have a simpler view of your expenses. If you decide to keep one account for your personal, business, and savings, your savings may get lost in your business and personal expenses. With every tax savings payment, allocate about 20 percent into your tax savings account. At the end of the financial year, you can view your accumulation of savings – purely from tax deductions. 

2. Claim your operating expenses including home office deduction 

Your operating expenses are classified as revenue expenses because they assist you in generating income. These can be claimed year on year. Operating expenses include salaries and wages, allowances and bonuses, payroll expenses, legal fees, accounting fees, marketing. And also advertising costs, inventory costs, business insurances, phone and internet, and travel expenses. In addition, funds that your business allocates towards research and development can also fall under the operating expenses category. 

With the disruption of COVID-19, employees and business owners were forced out of offices and into the home office. The home office is a deduction that people have been scared of taking. And yet it provides major tax savings for the self-employed.  If you do have a home office for your business, then you need to be claiming this as an operating expense.

A home office is an area of your home that is used exclusively. And regularly for business purposes – which means it cannot be used as anything else. This also means that your dining room or living room couch cannot be classified as your home office. Regularly means it needs to be used on an ongoing basis. This means using it only once a year won’t make the “regular” criteria. It’s all about consistency. In addition, you can claim the depreciation of certain office equipment. And in some cases, you may be able to claim occupancy expenses such as rent, mortgage interest, rates, and land taxes. 

There are three ways of calculating home office expenses depending on your circumstances. The methods are the:

• Shortcut method
• Fixed-rate method
• Actual cost method

To make the most of your operating expenses and home office expenses deductions, have a chat with your tax accountant professional. They are experts in deductions and can ensure that you are claiming the right expenses. 

3. Turn charitable donations into expenses

In reality, most charities are not approved by the Australian Tax Office as a tax-deductible charity. If you do want to make a deduction on your donation, then you need to find a charity. That is an organisation endorsed as a Deductible Gift Recipient (DGR). And must be a genuine gift – you cannot receive any benefit from the donation. This means that purchases from a charity that involve raffle tickets, items, or food cannot be claimed as tax-deductible gifts.

In addition, this does not mean that you cannot claim a tax deduction from your business for the donation. It just means that you need to structure the deduction correctly. Your tax accountant can help you claim this – provided that you run your business through a family trust with a family trust deed. In this instance, you can claim deductions to any registered charity in Australia, regardless of if they are approved by the Australian Taxation Office or not. 

Feeling confused about how to claim a deduction from your donations? Chat to your accounting professional or bookkeeper, and they can help you navigate how to turn charitable donations into a business expense. 

4. Prepay your expenses and taxes!

Businesses that have a turnover of less than AU$10 million can claim an immediate deduction for prepaid expenses for up to 12 months in advance. When you prepay, you bring forward your deductions and can reduce your tax liability for the current financial year.  

In addition, you can prepay your taxes in advance, and this can save you from paying them when your business may not be doing as well. You can also receive discounts by paying in advance. 

You can also prepay your business loans and any other business expense that can be paid in advance including subscriptions, seminars, telephone, and IT services. Many services also offer discounts when paying in advance. 

5. Tools and equipment

If you need equipment to perform your job, then you can claim deductions on the purchases any time or over a period of time. This includes a computer, power tools or machinery, IT hardware, etc. 

You can claim up to $1000 in your annual tax return for tools and equipment that are required for you to perform your job. You can also claim depreciation on tools and equipment that are priced more than $1000 (including an instant write off on asset purchases up to an amount of $20,000)

Large acquisitions including IT servers, cars, and expensive equipment is claimed via a depreciation of capital value. You can claim 15 percent in the first year and 30 percent each year after the first year. 

These claims are all applicable even if you haven’t paid but have been invoiced before 30 June. Understating your business taxes, and claiming as much as you can help you put money aside for a Sydney home purchase. If you are unsure how to navigate the taxation system and need help with filing your taxes, then give us a call at our Eastern Suburbs tax accountant practice. We work effortlessly to understand and simplify all the tax information and assess what your business can claim. RT Taxation can help you focus on your business while you leave the boring tax stuff to us. We want you to have the confidence to run your business while our tax experts work on ensuring you are up-to-date with your tax requirements.

Recently, a small business owner came to RT Taxation to enquire about the services that were on offer – in particular the tax services. While in the discussion, he asked if we were worried about the evolving trends. And the increase in the use of cloud-based software to perform accounting tasks. With so much software easily available online, it does make a business owner question their investment into outsourcing to a tax accountant. While I did understand his questioning of tax accountants services and whether the investment is worth it – I assured him that we at RT taxation are not concerned with the rise in accounting software. In fact, it is exciting to work in a constantly changing, evolving, and competitive industry. The increase of cutting edge, advanced accounting software also helps us as a tax accounting firm to save time on monotonous filing. And also spend more time helping our customers grow their business. 

What did concern me about our conversation, was that the small business owner was under the impression that with accounting software, you no longer need an accountant – but you can do all your accounting by yourself… Well, if this were true, then I would definitely be out of a job. But I can assure you, accounting software does not make a tax accountant obsolete. And just because you invest in accounting software to avoid the cost of outsourcing to a tax accountant, doesn’t mean you won’t need one in the long run. Business owners are still time-poor, and they will often need professional guidance, advice, and someone to assist them with navigating tax. 

Benefits of accounting software to tax accountants

As a small business, you may not be able to focus on the small details. You may overlook the details when it comes to observing sales patterns and the umbrella picture of your business profits and loss. Working together with a tax accountant and financial professional allows them to keep an eye on the details that you oversee. Finding the right accountant with complementary abilities is crucial for you to continue growing your business. A tax accountant is details oriented and their role is all based on facts. Business owners want accurate and relevant numbers for clarity and legal requirements. In addition, business owners need to be aware and up-to-date with applicable legislations that apply to their business. 

While tax accountants live and breathe all the finer details – they find themselves so busy finalizing the end of year financials, chasing up missing records, problem-solving the best taxable benefits and situations, and also trying to find new customers. Therefore, it is welcoming when our clients are using accounting software and are educated on basic accounting principles. It means we can spend more time consulting and discussing business issues, rather than spending our valuable time explaining the basics of accounting which often takes up a precious and costly consultation time. When our clients have an understanding of the accounting software, they are empowered to also keep an eye on basic accounting tasks and have confidence that the tax accountants will be taking care of the finer details. While the software is obviously important to keep track of many things accounting, it also helps a business owner understand the reasoning behind the problem-solving tax accountants take and allows them to feel confident following their advice. 

On the contrary – some business owners do not want to invest their time to understanding accounting software used for their business. They feel it is more important to continue focusing on the business and empowering the tax accountant to focus on all things financial. However, with the emergence of social media, and the ability to have information (and opinions) available at the press of a finger, the kind of hands-off behavior is much rarer. Business owners are more ambitious and want to feel more empowered – taking ownership of their business and financial decisions. They want to be involved in the financial process and make decisions based on real-time information. Therefore, to please their determination and curiosity – accounting software is used together with a tax accountant. 

Evolving accounting firms

Accountants are workers who need to adapt quickly to change. They are constantly on the receiving end of evolving tax laws, payroll legislation, and remuneration thresholds to name a few. And the speed of change is quick. In the past, a tax accountants’ value proposition was to assure that all their client’s information was accurate, to timely file and pay taxes, wages and abide by relevant legislation. They also interpreted the data to assist business owners to make educated decisions. While these value propositions remain the same, the new sources of information that are available to business owners have changed. These include Key Performance Indicators (KPI’s), customer behaviors and engagement metrics, customer lifetime cycle, customer sales cycle, cost of customer acquisition (through advertising spend), organic customer acquisition, and customer satisfaction. This information can now be integrated into leading accounting software and business owners can access this information at any time. 

The challenge for tax accountants is that their value proposition needs to go beyond filing taxes, compliance, and keeping a store of a client’s data. Fundamentally, business owners need a partner who is also a technology champion – and accounting firms are quickly ensuring that this is one of their services – ensuring that their tax accountants know how to get the best results from technology and how to integrate all aspects of the technology stack together. When tax accountants and accounting firms have a comprehensive view of what information a business is capturing, their value adds to business owners is indispensable. The combination of a tax accountants’ skills and the information retrieved from accounting software allows for better interpretation from a business owner. 

When we discuss the role of tax accountants and the importance of outsourcing to an accounting firm, we are reminded that our role as tax accountants is not only to file taxes and abide by compliance laws. It is also to provide solutions to client’s problems and guide them in taking steps to overcome business challenges and assist with their business growth. And it doesn’t end there – with the emergence of accounting technology and cloud software, our services include championing this very technology to ensure our customers can work together with us to streamline daunting accounting tasks and make the most out of the information that can be retrieved from the accounting software. At RT Taxation and Accounting Services, we can be your technology champion. We can manage your accounting tasks and work together with you to understand your business and what requirements you need to make the most out of your accounting software. Get on top of your accounting software today, and reach out to us at R T Taxation & Accounting Services.

Whether you’re an employee working eight hours a day, or a small businessman trying to find their feet in the unforgiving business world, taxes are hard for everyone. There are a lot of complicated rules, policies that we need to adhere to. Even the slightest mistake can result in serious consequences. However, the Australian Government is continuously initiating policies to make taxation easier for everyone. Considering the current pandemic, a lot of people are struggling to make ends meet, and that’s where tax deductions in Australia can play a crucial role. 

You’re currently eligible for a plethora of tax deductions in Australia that can reduce your taxes by a significant amount. However, the lack of knowledge about tax deductions as well as the complicated nature of tax deductions can make them hard to avail of. To make life easier for you, we’re discussing the steps to applying for tax deductions to make life easier for you. Let’s begin!

What are Tax Deductions in Australia?

Tax deductions are specific discounts that you can claim. The deductions will be calculated and deducted from your final income tax. Deductions can be based on many factors, these include the type of work, location, the risk involved in the field of work, etc.

Generally, the Australian Government provides tax deductions in industries it has subsidized. Also, things like clothing, travel, education, etc. are eligible tor tax deduction under specific criteria. You’d receive tax cuts if you’re eligible for any of these deductions.

Furthermore, the current pandemic has made businesses take drastic measures to keep their business afloat. These include home office costs and losses incurred due to the pandemic. While these deductions are only temporary, they might be the boost your business needs.

However, you need to make sure all the documents are for your deductions to be calculated.

How to Apply for Tax Deductions in Australia:

Applying for tax deductions in Australia can seem like a complicated process. However, it’s actually relatively simple with some technical bits involved. You need to follow a few simple steps for a seamless process. The steps are:

Step 1: Research:

Taxation is a complicated process. Whether it’s filing taxes or applying for deductions, there are a lot of technical aspects. So, if you’re planning to apply for tax eductions in Australia, the first step should be to research. Find out the deductions available for your field of work and whether you’re eligible for any of them. 

Also, deductions are available in multiple other factors along with subsidies. Whether you have a specific attire for your workplace or got yourself enrolled in a particular course to improve at your field of work. Furthermore, your expenses during the pandemic are also taken into account. 

So, research to find what tax deductions you’re eligible for before going to the next step. Knowing your information beforehand can be very useful.

Step 2: Consult a Tax Accountant:

Now that you know what deductions you are eligible for, consult a tax accountant. Your tax accountant can help you get the best outcome. Tax accountants have years of experience in taxation laws and policies. So, they’ll be able to provide you with the best possible solution.

Furthermore, once you discuss with your tax accountant, you can receive a better idea about things. You might get a better idea about how much money you can get as a deduction. Also, your tax accountant can help you receive more deductions than you had planned initially. 

So, make sure you’ve discussed your plans with your accountant thoroughly. A good accountant can be a life-saver. 

Step 3: Calculate Your Deductions:

Now that you know which deductions to apply for, you need to find out how much money you’d get in deductions. In order to do so, you need to gather proof of your expenses and add them up. 

Use receipts, brochures, diary records etc. of the amounts you’re applying for a deduction. Items like furniture, travel, uniform costs, etc. generally require you to show documents to prove your expenditure. So, make sure you have proof of these items.

However, different items like home office costs, laundry, education, etc. don’t necessarily require you to show receipts. However, you might need to show some form of proof as a guarantee of your expenses.

To make tax deductions in Australia more comfortable for you, the Australian Government has introduced the MyDeductions app. It’s a tool that helps you calculate your taxes and deductions, upload your receipts and email them to the relevant authorities. It’s an excellent option for people who are busy and find it hard to physically visit taxation offices. 

Furthermore, the MyDeductions app is a great option if you’re looking for a contactless alternative to the physical queues. This is great, especially considering the threat of the pandemic at hand.

Step 4: Submit Your Documents:

Now that you have an idea about everything, it’s time for the last step. You have to submit your deduction documents along with the other tax documents. The taxation committee will evaluate your paperwork and approve your deductions.

Make sure the documents you’ve provided are authentic and accurate. Expired documents, falsified information or inadequate information, will not only reduce your chances of getting the deduction, but it can cause you legal trouble as well.

Furthermore, make sure the standard taxation documents are also accurate. Your payment information, legal information, payroll etc. should be in order.

Conclusion:

Paying taxes is essential for every citizen. It helps the country run smoothly and keep everything in order. To makes taxes easier for the people, tax deductions are a great option. They reduce the burden of excessive taxes to make the experience smoother.

However, the lack of knowledge about tax deductions in Australia makes many people shy away from regularly paying taxes. And thus, we’ve decided to make lives easier for you! We’ve discussed the simple steps to applying for tax deductions in this article. We hope you find this useful!

For most Australians, taxes is a massive hassle. The enormous amount of paperwork, paired with the bureaucratic hassle and complying with the plethora of laws, can be challenging. However, a lack of knowledge about taxes can be disastrous. To make life smoother for small businesses, the Australian Government provides a significant number of deductions and subsidies. These tax deductions can be incredibly beneficial for people who are struggling to find their feet in the business world. 

In this article, we will discuss all the nooks and crannies of tax deductions in Australia. Let’s begin!

What is a Tax Deduction:

A tax deduction is a deduction that allows a business or an individual to lower the amount of tax it has to pay. Multiple factors are used to deduct an amount from the taxable income. Generally, tax deductions are expenses that you make for your business that are subsidised by the Australian Government. 

However, tax deductions in Australia are very technical. So they require some bit of effort from you. But tax deductions can be crucial for you in the long run.

Types of Tax Deductions in Australia:

Generally, you’re eligible for multiple types of tax deductions in Australia. These include:

Home Office Deductions:

The COVID-19 pandemic has changed work environments for us drastically. One of the significant changes is the shift to “work from home” or home-offices. Many employers have allowed their employers to work from home instead of travelling to their workplace to keep them safe.

To make the transition to home offices smooth, the Australian Government provides tax-deductions to individuals and businesses. In this case, you’d get deductions for office-related expenses. These include phone and internet bills, stationery and computer parts, and furniture and appliances related to the home office.

However, you’d be eligible for a tax deduction on furniture if the furniture cost is below 300AUD and it’s only for home office purposes. Furthermore, typical household expenses that are viable for home offices are not considered for tax deductions. These include; rents, mortgages, electric bills, household expenses, etc.

Clothing and Uniform Related Expenses:

Many workplaces require you to wear a uniform for work reasons. Furthermore, you might need to wear protective clothing to protect yourself from the risks in your workplace. You need to spend an amount of money every year purchasing, cleaning, and repairing these clothes. In certain situations, you would be eligible for tax deductions on these clothes. 

You can get tax deductions for clothing in Australia, but it can be very technical. Firstly, you’d receive tax deductions for your work clothing if they’re unique to your workplace. These include specific uniforms, costumes, and clothes with logos on them. However, if you need to buy standard clothing for work, such as suits or dress shirts, they won’t be considered for tax deductions. 

Furthermore, if your area of work requires protective equipment such as hard hats, protective clothes, and shoes, you’d receive tax deductions for them. Also, if you have to spend a considerable amount of money every year cleaning and maintaining them, you’d receive tax deductions for them as well. However, you have to show adequate proof, such as receipts and records, to be eligible.

Travel Expenses:

If your work requires you to travel regularly, you might be able to receive tax deductions on your travel costs. However, there are a few factors involved.

To begin with, you won’t get a tax deduction in Australia for traveling from your home to your workplace and vice versa. If your home is a base for work or you have to travel to an alternative workplace, you’d be eligible for a tax cut.

However, if you have to travel to a different region for work purposes, you can receive a tax cut for it. Also, you’d still have to show proof of your travels to the relevant authority. 

Finally, in the case of transfers and relocations, you won’t be eligible for a tax cut unless there’s an emergency issue. 

Industry-based Education:

Skill development is essential for development in any field of work. Different courses and training are a great way to amplify our skills and take us to the next level. However, training can be expensive, and that’s why the Government is willing to help.

If you’re doing a course that’s important for your work, you can apply for a tax deduction. However, it will not be applicable to your student debt or loans. Also, you might not receive a deduction on your entire cost, so keep that in check as well.

Industry Related Expenses:

The Australian Government subsidises certain industry-related expenses. If you’re working in such an industry, you might be eligible for specific tax cuts and deductions.

The Australian Taxation Office has a detailed list of professions where you are eligible for tax deductions in Australia. Check the list to see whether your area of work is suitable.

Charity and Donations:

Most companies tend to make donations as a part of their Corporate social responsibilities. While these donations are great for charities that work for a cause, they can reduce your taxes by a bit as well.

You can claim certain donations for tax deductions. Also, any gift you send to charities and companies, you can put that up for tax reductions as well. Although these are very technical, they might be beneficial for your business.

Investment Incomes:

If you have savings and investments, you can receive tax deductions based on them as well. These include interest payment in your savings, dividends from shares, profits from other businesses, rents from owned properties, etc. 

Conclusion:

Paying taxes is essential for any citizen. Taxes help keep the country running and ensure all the citizens are taken care of. However, many times our taxes can be too much for us to bear. Especially for small businesses, too much taxes are a problem.

Tax deductions in Australia are a great way to save money. However, people tend to get flustered by the rules around them. In this article, we’ve discussed everything you need to know about tax deductions in Australia. We hope you find this article useful!