The financial year comes to an end in a matter of days, and if you’re the sort of person to leave your tax affairs to the last minute, don’t worry. There are still plenty of ways to reduce your tax and boost your super that are easy to do before July 1.
Luggage you use for work, such as a handbag or briefcase, can be claimed as a tax deduction.Credit: Bloomberg
Working from home
You are entitled to certain deductions for costs incurred in earning income and for costs arising from working from home.
Items of capital equipment, such as furniture, computers and associated hardware and software, which cost less than $300 and are used for work-related purposes can be written off in full immediately, says Mark Chapman, director of tax communications at H&R Block. Items costing more than $300 are claimed over the effective life of the item.
With many retailers running end of financial year sales, purchases you make up to June 30 could be claimed as a deduction in this year’s tax return, instead of making the claim in 12 months’ time, Chapman says.
Buy a new handbag
There is still time before July 1 to buy a handbag, briefcase, satchel or backpack which, if they are used for work to carry your laptop and work papers, should be claimable as an immediate work expense deduction if it costs less than $300.
The Tax Office says items you carry and use for work may include laptops, tablets, work papers, protective equipment or diaries. Items such as gym gear, food, or a personal phone, tablet or laptop are not items you need to carry and use for work. These are private or domestic items.
When you use the bag or case for both private and work purposes, you need to apportion your deduction, Chapman says.
Source Agencies
