Tax Tip

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Depreciation for renovations made easy

Investment property owners often miss out on thousands of dollars due to two main reasons: They don’t know what depreciation entitlements they can claim for renovations or refurbishments to their investment property They don’t use a qualified Quantity Surveyor to prepare a tax depreciation schedule Follow the steps below to ensure your tax depreciation schedule is right the first time around. Understand scrapping Scrapping refers to the removal and disposal of any potentially depreciable asset from an investment property. When worn or old assets (like carpet and hot water systems) are replaced and scrapped, the owner of the property may [...]

FBT exemptions for work-related electronic devices

FBT exemptions for work-related electronic devices From 1 April 2016, your small business clients can provide their employees with multiple work-related devices without incurring a fringe benefits tax (FBT) liability. The devices can include: laptops tablets calculators GPS navigation receivers mobile phones. Your clients can purchase the devices at any time, but can't give them to their employees until 1 April 2016 or they will be liable for FBT. This benefit may be in addition to or part of the employee’s salary or wages package. To be eligible, your client's business must have an annual turnover of less than $2 million. You should [...]

Earn more from your holiday rental – Tax Depreciation

Earn more from your holiday rental - Tax Depreciation It’s that time of year when many investors take a well earned break by booking a holiday away from home with their family or friends. While they are away from home, property investors might be tempted by opportunities to purchase a holiday rental as an investment. Before making a decision to dive in and purchase a property, investors should seek advice from relevant professionals such as a Property Manager, an Accountant, a Financial Advisor and a Quantity Surveyor. This is because investors often decide to purchase a holiday rental [...]

Lawyers – Maximising your deductions

Lawyers Work-related expenses Did you have expenses relating to your work as an employee? Here is a list of expenses commonly incurred by employee lawyers. You cannot claim costs met by your employer or costs that are reimbursed. Capital allowances You can claim a deduction, called a capital allowance, for the decline in value of equipment used for work. If the equipment is also used for private purposes, you cannot claim a deduction for that part of the decline in value. You cannot claim a deduction if the equipment is supplied by your employer or any other person. Generally, the [...]

Journalists – Work-Related Deductions

Journalists Work-related expenses Did you have expenses relating to your work as an employee? Here is a list of expenses commonly incurred by employee journalists. You cannot claim costs met by your employer or costs that are reimbursed. Capital allowances You can claim a deduction, called a capital allowance, for the decline in value of equipment used for work. If the equipment is also used for private purposes, you cannot claim a deduction for that part of the decline in value. You cannot claim a deduction if the equipment is supplied by your employer or any other person. Generally, the [...]

Mining site employees – claiming work-related expenses

Mining site employees - claiming work-related expenses This summary outlines some of the deductions you can and cannot claim as a mining site employee. Car expenses for vehicles under one tonne You cannot claim deductions for your car expenses from home to work even if: you work outside normal business hours you are on call you did minor work-related tasks on the way to work or home you live a long distance from work, or there is no public transport available. Travel from the mine site security checkpoint to the parking area is part of your home to work travel. [...]

Deductions for mechanical, automotive and electrical tradespersons – claiming work-related expenses

Deductions for mechanical, automotive and electrical tradespersons - claiming work-related expenses This summary outlines some of the deductions you can and cannot claim as a mechanical, automotive or electrical tradesperson. Car expenses Home to work travel is only deductible in limited circumstances. Examples include where you: had to carry bulky equipment (heavy tools or machinery) that you used for work and could not leave at work were engaged in itinerant work. Work-related expenses incurred in driving between work sites, making deliveries, undertaking client visits or site inspections, and driving errands while on duty (but not minor errands between home and [...]

Information technology professionals – deductions you may be able to claim

Information technology professionals - deductions you may be able to claim This summary outlines some of the deductions you can and cannot claim as an information technology professional. Car expenses Your home to work travel is not deductible, even if: you do minor work-related tasks while travelling to and from work, such as collecting mail you travel between home and work more than once a day you work outside normal business hours, for example, shift work or overtime you are required to be on call your home is a place of business and you travel directly to a place of [...]

Guards and security employees – claiming work-related expenses

Guards and security employees - claiming work-related expenses This summary outlines some of the deductions you can and cannot claim as a security guard or an employee in the security industry. Car expenses You cannot claim deductions for your car expenses from home to work even if: you work outside normal business hours, for example, shift work or overtime you are on call you did minor work-related tasks on the way to work or home you travel between home and work more than once a day, or there is no public transport available. You can claim deductions for your car [...]

Flight attendants – claiming work-related expenses

Flight attendants - claiming work-related expenses About this guide This guide will help you work out what work-related expenses you can claim a tax deduction for and the conditions you must meet before you can claim if you are a flight attendant or cabin crew member. Work-related daily travel expenses you can claim Travel expenses that you claim must directly relate to your work as an employee. These expenses may include: work-related car expenses expenses for motorcycles and vehicles with a carrying capacity of one tonne or more, or nine or more passengers actual expenses - such as any petrol, [...]

Fitness and sporting industry employees – claiming work-related expenses

Fitness and sporting industry employees - claiming work-related expenses This summary outlines some of the deductions you can and cannot claim as an employee in the fitness and sporting industry. Car expenses You cannot claim deductions for your car expenses from home to work even if: you work outside normal business hours, for example, shift work or overtime you are on call you did minor work-related tasks on the way to work or home you travel between home and work more than once a day, or there is no public transport available. You can claim deductions for your car expenses [...]

Engineer – claiming work-related expenses

Engineer – claiming work-related expenses Overview If you are an employee engineer, this information outlines some of the deductions you may be able to claim. Work-related daily travel expenses you can claim Generally, the cost of normal trips between your home and work is a private expense you cannot claim an income tax deduction for. However, as an employee engineer, there are certain situations where you may be able to claim deductions for travel between your home and workplace. Transporting bulky tools and equipment You can claim the cost of using your car to travel between your home and work [...]

Education professionals – claiming work-related expenses

Education professionals - claiming work-related expenses When you can make a claim In most situations, you can claim deductions for work-related expenses as long as: you incurred the expense in doing your job the expense is not private (for example, travel to and from work, and most meals), and you can show you incurred the expense by producing receipts or other written evidence, unless an exception applies. However, there are some instances where you have to meet other conditions, some of which are mentioned below. Claim the correct amount for the year You must have incurred the expense in the [...]

Earthmoving plant operators – claiming work-related expenses

Earthmoving plant operators – claiming work-related expenses Overview This guide will help you work out what work-related expenses you can claim a tax deduction for, and the conditions you must meet before you can claim, if you operate a plant to: excavate earth, ore and rock break up pavement, road rock and obstructions move and load earth, rock and debris level, smooth and compact surfaces. The guide looks at: motor vehicle expenses, including car lease payments travel expenses and associated allowances uniform, occupation-specific or protective clothing, including laundry and dry-cleaning expenses other expenses, such as meals, phone, mobile and computer [...]

Building and construction employees – claiming work-related expenses

Building and construction employees - claiming work-related expenses Work-related travel expenses you can claim Travel expenses that you claim must directly relate to your work as an employee. These expenses may include: work-related car expenses expenses for motorcycles and vehicles with a carrying capacity of one tonne or more, or nine or more passengers actual expenses – such as any petrol, oil and repair costs if you travel in a car that is owned or leased by someone else public transport – including taxi fares bridge and road tolls parking fees short-term car hire. Generally, the cost of normal trips [...]