Individual Tax Deductions – Are You Sure You Claim Everything You’re Qualified for?

Most countries of the world charge a percentage of the earning of its registered citizens to spend in different services, commonly known as taxes. The tax charged by different countries is mainly used in the maintenance and development of different infrastructures.

individual tax deduction

Australia also levies taxes on several points and uses them in several services like health, defence, education, roads and railways etc. The charges differ according to the indigenous or foreign residents with a taxable income range of $0-$18200 and $0-$90, 000 respectively. The taxation matters are under the jurisdiction of the Australian Taxation Office or ATO.

What are individual tax deductions?

The term ‘individual’ means something else in the vernacular of ATO. The person who works in an Australia- registered company and is paid money for his or her services is recognized as an ‘individual’ by the department. During the filing and payment of the required tax, the candidate can seek a return on some expenses. This return is denoted as the Individual Tax Return and also as an individual tax deduction.

For example, ATO provides tax returns on particular types of equipment used in the profession of the taxpayer if he or she files a claim properly. So, if you are a physical trainer, you can claim a return on the purchase of exercise machines; likewise, a teacher may file for teaching aids, and a medical professional can get tax return on the medical instruments, subject to the existing rules and regulations.

Most countries of the world charge a percentage of the earning of its registered citizens to spend in different services, commonly known as taxes. The tax charged by different countries is mainly used in the maintenance and development of different infrastructures.

Australia also levies taxes on several points and uses them in several services like health, defence, education, roads and railways etc. The charges differ according to the indigenous or foreign residents with a taxable income range of $0-$18200 and $0-$90, 000 respectively. The taxation matters are under the jurisdiction of the Australian Taxation Office or ATO.

What are individual tax deductions?

The term ‘individual’ means something else in the vernacular of ATO. The person who works in an Australia- registered company and is paid money for his or her services is recognized as an ‘individual’ by the department. During the filing and payment of the required tax, the candidate can seek a return on some expenses. This return is denoted as the Individual Tax Return and also as an individual tax deduction.

The tax payment factors

The Individual Income Tax Return will depend on the amount claimed as per the prevalent laws, and the amount of tax an individual pays to the government. For individual or business tax purposes, the claimant will have to first apply for and receive a Tax File Number or TFN; which serves as a unique identifier to the ATO. The factors on which the amount of tax payable is calculated depends on several things, already known as;

  • Your status as an australian resident
  • The amount and type of currency you earn or own.
  • The number and nature of your job.
  • Whether or not you have a tax file number (TFN)

The TFN

Usually, the TFN has to be shared with the employer after the candidate has started working for them; otherwise, the employer can take tax from your pay at the highest rate. Also, apart from the employers and for some other cases, the TFN must not be shared, given away, or sold. Evidence in either of the three cases can lead to criminal charges. The TFN must be kept secure from all sources, except:

  • The ATO
  • Registered tax agents
  • The Higher Education Provider or universities for student loan matters.
  • The employer, but not on the job application.
  • The bank or other financial houses
  • Other government departments of Australia

It’s better to take the help of a tax consultant Perth to know more in detail about the return of individual income tax.

The points to remember

To ensure that you are not paying taxes in excess of that required by law, the complete information about these matters is necessary.  Moreover, having complete information means that you can file for the correct amount and ensure that you are getting the highest return. Other points which can be helpful in these regards can be listed below;

The related fields

The ATO allows the individual taxpayer to claim returns from various expenses of varying fields of work. Having knowledge about this will ensure the correct calculation for return and payment of tax. However, each of the payment needs to be proven upon inquiry with proper documents. Some of the points where tax returns can be claimed are listed below:

  • Pieces of equipment like Calculators, electronic organizers, Computers and laptops, Computer-related consumables, Internet usage (excluding connection fees), Phone and accessories, Software, Briefcases and carry-bags, Safety equipment like hard hats, harnesses, sunscreens, sunglasses, safety glasses, etc.
  • Expenses for work-related travels like Tolls, Parking Fees, fuel expenses, Public transport fares including flights, taxis, etc, Accommodation and meals if overnight stay away from residence is required for work.
  • Clothing items including protective clothing, uniforms with logo, laundry bills of the clothing item mentioned before, and many others.
  • Organizing your expenses

Keeping the expenses organized is a great way to defend your claims during the tax assessment. It is better to keep an electronic copy of the bill in case the hard copy gets lost or fades in time. Using simple folders or markers to separate the bills according to the month will confirm the easy availability of them as they are needed.

Keeping proof of expense ATO can charge a hefty fine if any expenses claimed for return cannot be proven during the assessment. Therefore, it is better to submit verifiable expenses and keeping the receipt of each purchase. Consulting an experienced Tax Agent Perth before filing the claim will minimize errors and have a better chance of being approved.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top