Knowing what you’re entitled to claim for the end of financial year can be tricky, since every so often the Australian Tax Office (ATO) makes changes.
Here are some of the tax deductions you may be able to claim in the 2021-2022 income year.
Of course, general information like this will only get you so far. To take into account your individual circumstances, the two best ways to find out what you can claim are:
1. Hire a certified taxation accountant
The cost of a using an accountant if you are a sole trader or individual is relatively small and can be claimed on tax the following year. A tax accountant will know the rules inside-out and can help you navigate the tricky waters if you’ve neglected to file tax returns for the previous years or want the most tax-effective way to accurately deduct and claim what you’re entitled to. If you have a tax bill, your accountant can also act as a go-between and liase with the ATO on your behalf.
2. Check the ATO website
The ATO has a comprehensive website with everything you could want to know about deductions. There is a lot of information to digest, so while their website may help you understand what you can claim, you may still want to hire an accountant to ensure you’re getting what you deserve.
There are also plenty of blogs and articles you can read by certified tax experts and financial experts who provide good tips on what you can claim.
That said, here are a few different circumstances that may result in a tax deduction. Check to see whether any of these apply to your 2021-2022 income year.
When you have been working from home…
Due to COVID lockdowns or hybrid working conditions, you may be eligible to claim a number of different working from home expenses.
There are different regulations depending on your circumstances. For example, if you have an ABN and work from home, you can claim home office running expenses including electricity, cleaning your office area and the full value of office equipment up to $300 and depreciation of equipment over $300.
If you are an employee working from home, you must not be reimbursed by your employer for the expenses you claim for.
What you can and can’t claim can be confusing for employees who work from home. To ensure you’re fully entitled, make an appointment with a certified taxation specialist. They will be able to help you maximise your tax refund.
When can claim on study…
If you have been undertaking study for a formal qualification to advance your career, then you are allowed to deduct a portion of your tertiary fees, study books and other course-related expenses.
For example, if you’re a dog walker who wants to specialise in animal behaviour, this would be covered. However, if you’re a dog walker who wants to become a hairdresser, you won’t be able to claim it back. Any continued professional development you undertake must be related to your current career.
When you have invested in cryptocurrency…
For Australian cryptocurrency investors—Bitcoin or Ethereum—if you have held your crypto assets for more than a year, you may be entitled to a 50 per cent discount on Capital Gains Tax. The ATO will be taking a special interest in the details of your crypto transactions. Also, if you have transacted with a foreign cryptocurrency exchange you may have tax responsibilities in another country.
When you’ve been travelling for work…
You can claim for the cost of travel when it falls under carrying out your work duties.
For example, if your employer requires you to travel interstate for work and you pay for it out of your own pocket. You may be eligible to claim for transport including airfares, Ubers, accommodation, meals and incidental expenses (providing you haven’t been reimbursed for it by your employer).
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