Key tax deductions for employees to claim to maximise tax refunds

Key tax deductions for employees to claim to maximise tax refunds

 There are a number of common tax deductions that are missed by employees. Our guide outlines some key tax deductions for employees to claim to maximise tax refunds that are often overlooked or missing from many individual's Income Tax Returns. By claiming these tax deductions, many employees will receive tax refunds so make sure you are not missing out!

1. Mobile phone useage

  • Do you use your private mobile for work related purposes? If so, then a percentage can be claimed as a tax deduction

2.  Device useage - Tablet, Laptop, Desktop

  • By using your personal device for work related purposes, you are entitled to claim a percentage of the overall monthly cost plus claiming a percentage of depreciation 

3. Home internet useage

  • Are you connecting using your home internet to check your work emails on your device? If so, then a proportion of your usage is claimable

4. Home Office useage - Running costs and furniture

  • If you spend time at night working or work from home, there are various methods for claiming the office running costs (lighting, heating, cooling, phone line) and depreciation of home office furniture and equipment
    • There is an all-inclusive ATO claim rate of 45 cent per hour
    • However, with little more effort and the correct tax advice, generally you can claim more under the actual cost method
  • If you own the property, it often is unwise to claim mortgage interest and depreciation as a percentage of your home will become taxable on sale
  • If you rent the property, then claiming a percentage of the rent cost can equate to a sizeable tax deduction

5. Work related travel

  • Often people overlook travel for work related purposes. These are key tax deductions for employees to claim as the claim can be substantial.
  • Do you?:
    • travel between 2 places of work
    • travel from work to places of study as part of training and development for your current role
    • carry heavy work-related equipment or marketing materials
    • travel to the airport for interstate travel
    • catch a taxi or Uber and forgot to make n expense claim from your employer
  • Private Car - work related use and how much can you claim
    • Cents per kilometre method - Reasonable tax deductions possible -
      1. You can claim a rate of 66 cents per kilometre for travel in your own car (up to a maximum claim of 5,000 kilometres under the Cents per kilometre method)
    • Log Book Method - Large tax deductions possible
      1. By keeping a 12 week record of your travel, you can calculate the work related use of your car as a percentage
      2. This percentage is then applied against all car expenses for the tax year to calculate the total tax deduction allowed
      3. If work related travel and the corresponding percentage is high, then significant tax deductions are possible

6. Superannuation Contributions - claim up to $25,000

  • From 1 July 2017, the 10% Superannuation rule has been abolished so all employees now have the opportunity to claim a tax deduction for making Superannuation contributions
  • The maximum amount for which you can claim a tax deduction is your concessional contributions limit of $25,000 - this limit applies to all age groups
  • Prior to 1 July 2017, the 10% rule prevented most Employees from claiming a tax deduction
  • Care must be taken in terms of claiming the correct amount of superannuation contributions so to avoid excess concessional contributions tax and Division 293 tax assessment
  • These are key tax deductions for employees to claim as now all employees are eligible

7. Other Key tax deductions for employees to claim to maximise tax refunds

  • There are a number of other tax deductions to claim for employees that will improve your tax position - ask one of TXM's tax experts.
  • Also, the ATO has a number of guides to claiming tax deductions that are specific to an industry these can be found here.

Don't miss out - we can amend already lodged Tax Returns to claim your tax refund

Missed out claiming tax deductions in prior tax years? We can fix this situation and claim missed tax deductions in your prior year Tax Returns and this will likely result in  will

We can help you claim these missed tax deductions and likely you'll receive a tax refund. Amendment of prior year Tax Returns can made for a number of tax years retrospectively - greater than 2 years (as most people believe). We know how and frequently make such claims for new clients. We will provide an assessment of your tax position after amendment so you will know before going ahead the dollar value of any expected tax refunds.

So reach out to us for an obligation free telephone discussion.

ph: +61 8 9467 4939     –    skype: +61 8 6102 0180   –   –


Important: The above commentary is for information purposes only and does not constitute tax advice upon which you can rely. If you are seeking formal tax advice, please make contact with us. TXM Chartered Accountants provides nil warranty for any loss or damage caused as a result of relying on the above information.