Go Sunday shopping for tax deductions
A HANDY tax refund is up for grabs for workers and business owners to make tax-deductible end-of-financial year purchases today.
That's the opportunity ahead of millions of employees and business owners as we head into the final day of the financial year.
June 30 is rarely as loud or alcohol-fuelled as the end of the calendar year, but it can be more fun - delivering a handy cash windfall soon.
There's a huge range of things that can be bought today and deliver an almost-immediate tax deduction, because anyone who has got all their income and expenses sorted can lodge their annual tax return from tomorrow.
This year there's an extra bonus, with tax refunds boosted by up to $1080 for workers earning below $126,000 thanks to the government's tax cuts package.
However, when shopping for tax deductions, remember you will only ever get back your marginal tax rate. So someone on the 32.5 per cent marginal tax rate buying home office gear only gets 32.5 per cent of their money back in a tax refund.
Only ever buy something you need. If you do, it's worth acting before July 1 so your deduction applies to the 2018-19 financial year. Why wait another 12 months for that refund?
Workers and business owners are using more tech than ever before including phones, tablets, laptops and desktops.
If these items are used for work, a tax deduction can be claimed - but only for the proportion they are used for work-related tasks. You must prove to the Australian Taxation Office that the use is work-related, so keep a diary for at least a month.
Working from home has surged in recent years as workplaces become more flexible and Australians start side businesses.
This enables furniture, printers, ink, stationery and other home office items to become tax-deductible for their proportion of work use. Items costing less than $300 can be deducted in full for employees, while anything above that needs to be deducted over time. Search the ATO
website and seek advice if you're unsure.
We live in a world of subscriptions, from pay TV and streaming services to newspapers and professional journals. In many cases, these costs can be tax-deductible if they relate to your work. It's good to seek advice, but taking out a subscription today can deliver a deduction from tomorrow.
TOOLS FOR TRADIES
This is the busiest weekend of the year for tool shops everywhere as tradespeople and business owners spend up big on new stuff. Tools and equipment, work supplies and protective eyewear are on their lists.
If it costs less than $300 it's an immediate full deduction, but for small business owners, the potential refunds are much larger …
A NEW CAR!
Channel your inner Larry Emdur or the late Ian Turpie from classic TV game show The Price is Right and shout yourself a new set of wheels.
The Federal Government's instant asset write-off rules allow business owners with turnover below $50 million to claim an immediate deduction for each item worth less than $30,000. This could be work vehicles, expensive equipment or other business assets.