Get more value from your tax return by choosing AWT Accountants. We ensure you receive all the deductions and the maximum tax return possible.
Book an appointment

Individual Tax

While completing your own tax return may seem like a quick and simple process, you may be missing out on potential deductions that could decrease your taxable income. Taxation is a complicated concept, especially if you have multiple sources of income such as shares or rental properties. AWT Accountants are here to simplify the complexities of tax and deliver you value throughout our relationship. Our services are designed to enable you to reduce your tax obligations now, and plan for the future to ensure you avoid unwanted pitfalls, and remain on the right track.

 

 

Our Tax Services for Individuals

  • Tax Planning/Rental Property
  • Capital Gains
  • Share Trading

What our clients are saying…

Valued and trusted

Letitia Joubert has proven to be the most reliable, helpful, consistent accountant I have ever worked with. Her knowledge and experience makes it so easy to complete tasks. I highly recommend Letitia and her team at AWT Accountants.

M. Forbes-Harper

Reliable, helpful, consistent

I would if I could choose only to work with Letitia Joubert and her team at AWT Accountants – Letitia has proven to be the most reliable, helpful, consistent accountant I have ever worked with. Her knowledge and experience makes it so easy to complete tasks. I highly recommend AWT Accountants.

G. Harris

Fantastic!

Audrey and her team at AWT Accountants are fantastic. Their client portal was easy to use and they were very helpful, prompt and efficient in getting our returns finalised and lodged for us. I will be using them for all our business and personal tax needs from now on.

Y. Gibson

FAQs

My place of employment requires me to adhere to a specific dress code. Can I claim my work clothing and laundry usage?

Not all purchases of clothing for work are deductible even if required by your employer. To claim a uniform or laundry deduction your clothing must be logo-bearing, occupation specific or protective.

For example, if you are required to purchase and wear plain black pants or a certain coloured shirt to work, this means that unfortunately they are not tax deductible.

I use my vehicle for both private and work-related purposes. Can I claim my vehicle as a tax deduction?

You are entitled to claim a tax deduction if you use your personal car for work-related trips that do not include your regular travel to and from your regular place of work.

If you are required to travel to clients, alternate work-sites, or drop off/pick up supplies for your work, you can claim some of your car expenses.

If you work multiple jobs, you can also claim the travel between the different employers.

There are two methods for claiming your personal car expenses which are the logbook method and the cents per kilometre method.

What are the logbook and cents per kilometre methods of claiming my work-related travel expenses?

The logbook method requires you to maintain a logbook for 12 consecutive weeks and includes information such as the purpose of the trip, the starting and ending location & odometer readings, and the kilometres driven. This twelve-week period is used to calculate a work-related percentage of your personal car use and apply it to the whole year, across all car expenses including fuel, insurance, registration, and repairs & maintenance. These logbooks are valid for five years before another one is required to be kept. This method requires more preparation and detailed records however, usually provides a larger tax deduction. We recommend this method for those who travel regularly and are expected to exceed 5,000 work-related kilometres in each financial year.

Detailed information can be found at: https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-motor-vehicle-expenses/Logbook-method/

The cents per kilometre method requires you to maintain a diary of work-related trips during the financial year including starting & ending locations and the number of kilometres driven. The ATO 2020 going rate of 68 cents is applied to the total number of kilometres which results in your tax deduction. This method has a maximum claim of 5,000 kms, capping your maximum tax deduction at $3,400, which is why we recommend the logbook method for those who are travelling regularly, as this usually produces a larger tax deduction. We recommend the cents per kilometre method when work-related use of a personal car is sporadic and minimal.

Is self-education such as university study tax-deductible?

Self-education expenses are tax-deductible when incurred with the purpose of increasing your income and/or maintaining or improving your specific skills & knowledge of your role in your field. Therefore, you must be working in the field prior to incurring the self-education expenses and must directly relate to your occupation. The first $250 of self-education expenses are not deductible but this figure can be reduced.

Example 1) A Junior manager can claim deductions relating to management courses if it is likely to lead to a promotion with increased income in Senior management.

Example 2) A Bookkeeper cannot claim deductions relating to an Accounting degree however, they could claim deductions relating to Bookkeeping courses or diplomas.

 

I have inherited some money. Is it taxable?

The inheritance is not taxable unless you are advised by the executor that a part is taxable. However, if you invest the income from the estate then any earnings will be taxable.

Can all the interest from our joint accounts be declared in my wife’s tax return because her income is much lower than mine?

No. All income must be declared by each recipient on the same basis as the accounts are held. Interest from a joint account must be split 50/50. You cannot declare it all on your wife’s tax return and doing so could lead to an ATO audit.

My bank interest is only $10. Does this amount have to be declared?

You must declare all interest from all sources no matter how small the amount is.

I have shares and received franked dividends this year but have no other income. Do I have to lodge a tax return to get the franking credits refunded to me?

You do not have to lodge a full tax return. You can complete the Refund of Franking Credits for Individuals.

Do I need to declare my overseas pension?

In most cases overseas pensions are taxable and, if you are an Australian resident, you will need to include the amount in your tax return. There are a few exceptions to this rule.

I need to buy tools and equipment for my job. What can I claim and how much?

You can claim expenditure incurred in replacing, insuring, and repairing tools that you use for earning your income. If the cost of any item is more than $300 then it will have to be depreciated (i.e. claimed over its effective life). The amount you can claim will depend on what records you have kept and to what extent you use it for income producing purposes.

My job requires me to keep my knowledge up to date and I buy books and journals. Can I claim them all?

If technical books, trade books or journals are necessary to fulfil your job function efficiently then the cost of their purchase is tax deductible.

Can I claim a deduction for sun protection items?

A deduction is available for outdoor workers who buy sunscreen lotion, sunglasses, and hats for use at work. The claim must be substantiated and apportioned for private use.

I have incurred travel expenses this year. What can I claim?

Your travel must be relevant to your job function for you to be eligible to claim a deduction for those expenses. Where this is the case, and you have the necessary documentation, you can claim the cost of transport and incidentals. If your travel involved an overnight stay you would be able to claim for meals. Travel overseas also has the requirement of keeping a travel diary.

I am paid an allowance for travel. Can I claim a deduction for that on my tax return?

A deduction will only be allowed if you have actually incurred a work-related expense and have the necessary documentation. Travel to and from your job is generally not claimable unless, for example, you are carrying bulky equipment. Some awards allow for a payment of an allowance even though an expense is not necessarily incurred by the employee. If a deduction can be claimed it cannot be for more than the expense that you incurred even if the allowance that you have received was higher.

I need to have a mobile phone for making and receiving business calls and would like to know what I can claim.

Part of the monthly cost is deductible where a taxpayer is required to make business calls from their mobile. A log of calls must be kept for a minimum of 4 weeks.

This year I bought a laptop and new mobile phone which I need for my work. Can I claim the cost of these on my tax return?

Items like this that you buy for use in your job can be claimed in your return. However, since the cost of these items is most likely to be more than $300 each you will not be able to claim the full cost in one year. It will be necessary to spread your claim over the useful life of the items (depreciation) and only the work-related proportion is claimable. You should keep a log of work-related use for a period of at least four weeks for each item to determine the proportion that you can claim.

I am expected to maintain a well-groomed appearance. Can I claim these expenses?

Expenditure on personal grooming and haircuts are generally not deductible. There are exceptions for some taxpayers involved in the performing arts field.

Can I claim fees paid to my tax agent?

Fees paid for preparation of your return are deductible. Registered tax agents are the only people legally able to receive payment for the preparation of tax returns.

I buy tea towels from a charity each year when they ring me. Can I claim this as a deduction?

You cannot claim a deduction for this because it is not a donation to the charity; rather you are receiving something for your money. Buying an item from a charity does not make your purchase tax deductible. The same applies to the purchase of raffle tickets. Only donations to registered charities are tax deductible.

Am I entitled to claim $300 for work related expenses as this does not have to be substantiated?

You cannot just claim $300. You must incur any expense before it is claimable. Whilst you may not need receipts for expenditure up to $300 you must have spent the money and it must be relevant to your employment.

Is there a limit on how much I can claim as a tax deduction each year?

AWT Accountants are happy to advise their clients on appropriate record keeping that will enable them to maximise their allowable deductions.

Is a credit card slip acceptable as a receipt?

Provided it gives full details of the supplier and date of purchase the tax office would accept a credit card slip as proof of purchase. Taxpayers can make a notation on the document indicating the type of goods that were purchased. The ATO will also accept BPay or email receipts provided they contain the necessary information, date, supplier, nature of the goods and the amount.

Can I claim my Self Education costs?

Self-education expenses are tax-deductable when the education is undertaken as a requirement of your current job role. You must be working in the job before you begin studying, or expenses can not be claimed as self-education expenses. For example, if you are working in a professional services firm and decide 6-months later you wish to undertake an accounting degree and work as an accountant in the firm, you will be able to claim self-education expenses. If you had of started this job 6-months after you started studying, you would not be able to claim the expenses as self-education costs.

Call us today to set a time to discuss your taxation, business or SMSF needs

We offer new business and SMSF clients a complimentary 30-minute meeting to discuss your situation and how to best organise your business and tax accounting affairs.