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It’s THAT time of the year again! June is the month when the whole retail supply chain indulges in a discounting overdrive. So, get your wallet ready to go on a shopping spree before the end of this financial year. There are many things to claim so give yourself the treat you deserve.
Background information to get you up to speed
The Australian Tax Office (ATO) allows people to claim tax on certain work-related assets by writing them off, if they’re valued up to $300.
Of course, there’s a catch, for more information read the terms and conditions.
The assets you choose to purchase need to be shown to the ATO as being under $300 and that their main use was to help at work. If used outside of work, then you are only eligible to claim back for the amount you use at your nine to five.
Deadline: 30th June
What should I buy?
You guessed it, topping the list is electronics. Claiming these under taxes will be a breeze since electronic appliances form the bread and butter of our work life.
Some handy electronic devices to invest in range from smartphones, tablets, laptops, computers, printers, headsets, cameras to name a few. Depending on your preferences you can choose to opt for devices within a budget range or high-end models. Although, be wary of the $300 limit.
Now is the perfect time to buy that dream car you have had your heart set on. Looking to go camping next holidays? Take this opportunity to buy a SUV or mini van for the entire family. Or if you like riding it solo, hit your nearest showrooms for a sweet deal on bikes or two wheel-drives.
If you drive or ride to work, then purchasing a vehicle is a key consideration. Since this purchase will exceed the $300 threshold, you can claim part of the vehicle usage under work purposes and the rest for personal.
Buying cars, vans, bikes, trucks, and other vehicles as we near the EOFY will make room for you to get the most value for money products. Especially since dealers have sale quotas to meet, they will give you favourable responses for prices, meaning you walk away with a signed contract and keys in your pocket.
It was compulsory to have clothing on our list, especially because we’re all guilty of planning out ‘the dream wardrobe’. Unfortunately, when claiming tax returns, we are only allowed to purchase protective clothing and unique, distinctive uniforms.
Obviously, you want to buy the best and most comfortable outfits, whether it be your work mandated uniform or protective gear since that is your attire for majority of your workday.
Varying on your budget, the options are abundant especially for employees who work on-site, buying a fresh pair of protective footwear is right up your alley. Having a few back-up uniforms is a vital consideration too especially when it’s laundry day. Now is also a good time to stock up on small products such as sunscreen, which can be claimed under tax deductions.
What do I need to do before EOFY?
It’s highly recommended to make a personal contribution into your superannuation account before the EOFY. By adding funds into your super account, you will be entitled to claim your tax deduction on this contribution.
Inclusive of the amount of super your employer pays on your behalf; you can contribute up to $25,000 to your account per calendar.
Middle- or low-income earners get an extra perk from the Australian government, this is a scheme known as the super co-contribution. Whereby, if your total income is equal or less than the higher income threshold and you make a personal contribution of $1,000 into your superannuation, you will receive a co-contribution of $500.
This last pointer is very straightforward and very self-explanatory. One of the significant paperwork you need to have planned is your finances. Albeit a tedious task, if not done properly can incur you a lump sum fine from the government.
If your employment contract labels you as a contractor, collate all your invoices and your earnings in the financial year ready for tax deductions.
Be conscious of all tax claims you’re eligible to make, so that you don’t miss out on your rightful savings- hurry it’s almost the 30th of June.
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