Work-related clothing expenses
If you have to wear a uniform for work with the company logo, it can be deductible (if you paid for it yourself). You can claim laundry expenses for it as well, for up to $150 without receipts)
If you purchased any protective clothing, that is an eligible expense and can be deducted. Examples of protective clothing include protective gloves, high-vis vests, and steel tip boots.
For more information on Uniform and Laundry Deductions, please click here.
Work Related Tools/Equipment
Any work-related tools or equipment that you use can be claimed as a deduction!
If the tools/equipment cost more than $300, you would have to calculate the decline-in-value (depreciation) amount that can be claimed for the year.
Some common tools/equipment that can be claimed are listed below:
- Leaf blowers
- Lawn mowers
- Nail guns
- Power tools
- Tool boxes
- Electric sander
- Work light
- High- pressure water cleaner
- Concrete mixer
- Hand-operated tools
Motor Vehicle/Public Transport Expenses
If you visit clients or pick up equipment/supplies for your job, the cost of your motor vehicle/public transport expenses are deductible. Do note that driving/public transport from home to your workplace and vice versa is not a deductible expense.
Do note that if you are driving your car for both work and personal use, you need to calculate how much of your usage is for work purposes, either through a logbook or the cents per kilometre method as follows:
Cent per KM method: You can claim up to 5,000 business km for 68 cents/km in your 2018-2019 tax return. This option does not require a written evidence.
Logbook method: You can claim the percentage of most car expenses. However, you will need an official vehicle logbook stating for a 12-week period of the beginning and ending odometer reading. This will be used as a representation of your travel throughout the whole year and determine the percentage of motor vehicle expenses that you can claim.
For more information on Motor Vehicle Expenses, click here.
If you use your phone for work purposes, you can claim a portion of time and data of your phone and internet bills that you used for work.
Any donations made to eligible charities of more than $2 are deductible, so keep the receipt if you sponsor the local bowls club!
If you had to pay for a license or certificate to work, you can claim that as a deductible expense!
Any union fees that you pay for are deductible. Most unions and associations send members statements of the fees or subscriptions paid.
Any accounting fees (including using a Tax Agent) are deductible so why would you do it yourself!
Changes to the instant asset write off means you can claim the full amount for any single asset you purchased prior to 12 March 2020 up to $30,000 and $150,000 till 30 July 2020.
Any fees that you incur for payment gateways are deductible.
Any insurance expenses that you incur for your business such as public liability are deductible. Income protection insurance is also tax deductible.
Rent is deductible if you are renting premises. If you are working from home and have a mortgage, it could be tempting to claim a portion of your mortgage as rental expenses. However, this is not recommended as if you do so, you may have to pay capital gains tax (CGT) if you sell your house in the future.
Any advertising expenses that you incur for your business are deductible.
For more general information on Sole Trader Deductions, please click here.