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Written by<\/em>\u00a0John Liston \u2013 Nixer<\/a><\/span><\/em><\/p>\n The tax season is a time some people look forward to as they have paid their taxes all year and are looking to get a nice refund to compensate for all the tax deductible expenses they have paid throughout the year. You now need to think about any work related expenses that you have paid over the last financial year.<\/p>\n <\/p>\n Generally, expenses will be tax deductible if they meet the below criteria:<\/p>\n \u2013 Does the expense directly relate to your income generating activity? (work)<\/p>\n \u2013 Did you pay for the expense? You can\u2019t claim it if you were reimbursed by your employer<\/p>\n \u2013 Do you have a record of the deduction? (e.g. a receipt)<\/p>\n The way many people work has changed over the last 12 months, with many working from home for extended periods of time. We will explore below some tax deductions that you may be able to claim on your return this year:<\/p>\n <\/p>\n Much like the rest of the working world, you\u2019ve probably made the shift to working from home. The ATO allows you to claim for your home office using the \u201cShortcut Method\u201d for the 2021 year. To keep it simple, the ATO allows you to claim a rate of 80 cents per hour for your running expenses, rather than needing to calculate costs for specific running expenses. Whilst this is the simple method, you can choose one of three ways to calculate your home office running expenses due to working from home during the year which we explore below.<\/p>\n <\/p>\n This is the simplest method of calculating your running expenses. You can claim a rate of 80 cents per work hour for all additional business expenses incurred during your time working from home. This covers things like electricity and internet costs, tech consumables, cleaning, and decline in value of office equipment.<\/p>\n However, this must strictly cover full work duties \u2014 not the occasional email check or phone call.<\/p>\n Also, if you choose this method you\u2019re unable to claim a further deduction for any business expenses already covered. So, for example, you can\u2019t also claim your internet bill on top of this method.<\/p>\n In order to claim in this method, you must keep a record of the hours you work from home as a result of COVID-19. It can be your timesheet, or a diary note.<\/p>\n When entering this in your tax return enter it as \u2018COVID hourly rate\u2019.<\/p>\n <\/p>\n Under this method, you can claim:<\/p>\n -A rate of 52 cents per work hour to cover things like electricity, heating or cooling, and the decline in value of your home office furniture.<\/p>\n \u2013 The work-related portion of the actual costs of your internet and phone expenses, computer and tech consumables, stationery, etc.<\/p>\n \u2013 The work-related portion of the decline in value of your main business device, whether it\u2019s a laptop, home computer, or similar.<\/p>\n As per the Shortcut method, to claim the Fixed rate method you must keep records of the hours you\u2019ve worked at home during this time. This can be either a timesheet, diary note, or a diary for a representative four-week period to demonstrate your typical working pattern.<\/p>\n <\/p>\n This is the most accurate, yet most time consuming method. Under this method, you must be able to provide evidence of any expenses incurred.<\/p>\n This includes:<\/p>\n \u2013 Recording the actual number of hours worked during this time.<\/p>\n \u2013 Determining the amount of electricity you use for your particular home office set up, for the hours you worked from home.<\/p>\n \u2013 Keeping all receipts for work-related expenses, including assets, consumables, cleaning, and any repairs required.<\/p>\n Where you don\u2019t have a dedicated working area, electricity expenses can be calculated by multiplying the individual unit rate by the hours you worked from home.<\/p>\n If any of your expenses are covered by your employer, such as phone or internet bills, these can\u2019t be claimed as a tax deduction.<\/p>\n <\/p>\n There are two main methods of claiming motor vehicle deductions:<\/p>\n \u2013 The logbook method \u2013\u00a0click here<\/a>\u00a0for more information on logbooks<\/p>\n \u2013 The cents per km method \u2013 capped at a maximum of 5000 kms.<\/p>\n Motor vehicle expenses can only be claimed on eligible work related travel journeys.<\/p>\n A work-related journey is one of the below:<\/p>\n \u2013 Directly between two separate workplaces<\/p>\n \u2013 From your normal workplace to an alternative workplace that is not a regular workplace while still on duty, and back to your normal workplace or directly home<\/p>\n \u2013 If your home was a base of employment \u2013 you\u2019re required to start your work at home then travel to a workplace to continue your work for the same employer<\/p>\n \u2013 If you had shifting places of employment \u2013 you regularly work at more than one site each day before returning home<\/p>\n \u2013 From your home to an alternative workplace that is not a regular workplace for work purposes, and then to your normal workplace or directly home.<\/p>\n \u2013 If you need to carry bulky tools or equipment that your employer requires you to use for work but you can\u2019t leave at your workplace (for example, an extension ladder or a cello) \u2013 the tools or equipment are bulky, meaning that because of the size or weight they are awkward to transport and can only be transported conveniently by motor vehicle.<\/p>\n <\/p>\n There are many rumors around what you can claim in relation to your work clothing, we are here to break it down for you.<\/p>\n You can claim a deduction for the the cost of buying and cleaning eligible work clothes such as:<\/p>\n \u2013 Occupation Specific clothing (such as a robe worn by a barrister)<\/p>\n \u2013 Protective and unique clothing (such as fire-resistant clothing, steel-capped boots etc.)<\/p>\n \u2013 Work Uniform (Any clothing that has a relevant badge or other identification)<\/p>\n You can claim the cleaning (washing, drying and ironing) of any of these eligible work clothes. Please ensure that you keep the receipts to substantiate these claims.<\/p>\n <\/p>\n \u2013 You are not able to claim any of the above for clothing that is not specific for your occupation. This includes business suits and office wear, you can only claim these if they include a badge or logo.<\/p>\n \u2013 You are also not allowed to claim clothing that you are required to wear for work if it is does not meet the above requirements. For example if you work for a clothing label and are required to wear that label to work, you are not allowed the claim the cost of purchasing these.<\/p>\n <\/p>\n You are able to claim a deduction for Self-Education expenses if they meet the following criteria:<\/p>\n \u2013 Lead to a formal qualification<\/p>\n \u2013 Have sufficient connection with your current employment and either maintain\/improve the your current skill set or knowledge in your role, or may lead to an increase in your income in your current employment.<\/p>\n If your expenses do not exactly meet this criteria, then you are not able to make this claim. For example, if the qualification allows you to get new employment, then this is not deductable.<\/p>\n <\/p>\n \u2013 Course\/Conference\/Tuition Fees<\/p>\n \u2013 Accommodation and meals if you stay overnight<\/p>\n \u2013 Computer expenses<\/p>\n \u2013 Depreciation on any capital expenditure (over $300)<\/p>\n \u2013 Repairs on any capital assets<\/p>\n \u2013 Travel expenses & Fares<\/p>\n \u2013 Home office costs<\/p>\n \u2013 Internet<\/p>\n \u2013 Parking (directly related)<\/p>\n \u2013 Phone usage<\/p>\n \u2013 Postage & Stationery<\/p>\n \u2013 Student union fees<\/p>\n \u2013 Any other student fees<\/p>\n \u2013 Textbooks<\/p>\n \u2013 Journals<\/p>\n \u2013 Travel to and from education precinct<\/p>\n <\/p>\n \u2013 Meals when you are not staying overnight<\/p>\n \u2013 Repayment of HECS\/HELP loan<\/p>\n \u2013 Home office occupancy expenses<\/p>\n <\/p>\n There are a number of things that can be claimed in addition to what has been explained above, some common examples are:<\/p>\n \u2013 Union fees<\/p>\n \u2013 Income Protection Insurance Premium (if paid personally, not in superannuation)<\/p>\n \u2013 Concessional Contributions to your superannuation<\/p>\n \u2013 Work related subscriptions<\/p>\n \u2013 Cost of managing tax affairs (accountant fees)<\/p>\n \u2013 Industry specific deductions<\/p>\n <\/p>\n FYI – Raiz tax statements for the last financial year are expected to be available in the third week of July. We’ll notify you when they’re out!<\/p>\n — — —<\/p>\n Want your tax done in less than 10 minutes? Head to\u00a0nixer.com.au<\/a>, enter your details and Nixer will do the rest. Nixer is Australia\u2019s most innovative online tax agent, offering a unique online tax experience built for Raiz users.\u00a0Plus as a Raiz user, you receive a special $10 discount on your tax return and $5 invested back into Raiz account when you lodge.<\/strong> Just make sure you sign up to Nixer through Raiz Rewards as you must use your unique link.<\/p>\n Every tax return is carefully reviewed by Nixer\u2019s team of qualified accountants to check for accuracy and to help you find extra deductions.<\/p>\n <\/p>\n <\/p>\n Download it for free in the App store or the Webapp below:<\/p>\n <\/figure>\n Important Information<\/em><\/strong><\/p>\n If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person\u2019s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.<\/em><\/p>\n You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.<\/em><\/p>\n We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing \u2013 sorry but true. 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You should note, as illustrated by the global financial crisis of 2008, that sometimes\u00a0 not even professionals in the financial services sector understand the ordinary risks of investing \u2013 because by their nature many risks are unknown \u2013 but you still need to give it a go and try to understand the risks set out in the PDS.<\/em><\/p>\n Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don\u2019t, it is so true.<\/em><\/p>\n Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.<\/em><\/p>\n This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can\u2019t promise that the information is accurate, or stays accurate.<\/em><\/p>\n Any opinions or information expressed are subject to change without notice; that\u2019s just the way we roll.<\/em><\/p>\n The bundll and superbundll products are provided by FlexiCards Australia Pty Ltd ABN 31 099 651 877 Australian credit licence number 247415. Bundll, snooze and superbundll are trademarks of Flexirent Capital Pty Ltd, a subsidiary of FlexiGroup Limited. Lots of names, which basically you aren\u2019t allowed to reproduce without their permission and we need to include here.<\/em><\/p>\n Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.<\/em><\/p>\n Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.<\/em><\/p>\n Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).<\/em><\/p>\n (ABN 26 604 402 815).<\/em><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Written by\u00a0John Liston \u2013 Nixer The tax season is a time some people look forward to as they have paid their taxes all year and are looking to get a nice refund to compensate for all the tax deductible expenses they have paid throughout the year. You now need to think about any work related […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yst_prominent_words":[]}1. Home Office Expenses<\/h3>\n
Shortcut method (available for the full 2021 financial year)<\/h4>\n
Fixed rate method<\/h4>\n
Actual cost method<\/h4>\n
2. Vehicle and travel expenses<\/h3>\n
3. Work related clothing<\/h3>\n
You can’t claim the following:<\/h4>\n
4. Self Education Expenses<\/h3>\n
Examples of what you can claim are as follows:<\/h4>\n
Examples you can\u2019t claim:<\/h4>\n
5. Other potential deductions<\/h3>\n
About Nixer:<\/h3>\n
\nDon\u2019t have the Raiz App?<\/strong><\/h3>\n
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