Working in a trade is hard work, with long hours and tight deadlines. It’s enough to leave you with little time or energy to worry about your taxes. But what if we told you that you could be missing out on possible tax deductions available to you? In this article, we will discuss how to get more back from the Australian Taxation Office (ATO) at tax time and answer some commonly asked questions.
What Can I Claim Without Receipts?
The ATO allows tradesmen to claim certain expenses without receipts. This includes expenses such as union fees, safety equipment, protective clothing, petrol usage (with a logbook provided), sunscreen and sunglasses, computer and mobile phone expenses, insurances and accommodation expenses when working away from home. It is important to note that all other expenses require a receipt to be claimed. Other expenses that can be claimed with proof of purchase for a full deduction up to the value of $300 includes any purchase made which directly enables you to carry out your job. This may include items such as tools, equipment and vehicle costs and upgrades. For bigger ticket purchases over $300, a depreciation period may apply before being able to claim, this may include items like trailers purchased and registered in your name for transportation of tools or material for a job. Any training and up-skilling relevant to your position with a Registered Training Organisation (RTO) may also be a notable deduction.
Where Can I File My Tax Claim?
You can easily file your tax claim online via myGov or with the help of a professional accountant who will be able to guide you through the process and ensure that all your claims are valid and nothing is being claimed which may be inflated. An accountant can also take care of tedious paperwork like keeping track of invoices and receipts. They are worth their weight in gold and a good investment to make for any business or individual. For everyday tracking and collation of receipts, be sure to download the ATO app and use the myDeductions feature to make filing receipts a breeze.
As a tradesman, there are plenty of deductions available when filing your taxes which could potentially save you hundreds – if not thousands – of dollars come tax time! With just a little bit of research and preparation now, you can expect the highest possible return at the end of this next financial year. If you’re starting a trade apprenticeship, be sure to check out our Tax Guide for Apprentices for essential insights on managing your taxes during your apprenticeship.