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WHAT CAN I CLAIM?

Chartered Accountant Steven Harrison

It is that time of year again where the tax man rears his head and wants to take a bite of your hard earned wealth. It’s also time to take stock of the income and wealth you have generated over the past year and what it cost you (aside from your own perspiration).

While it’s important that all income earned is included in your tax returns, by the same token you have to make sure you don’t short change yourself.  This is where The Intelligence GroupTM can help you keep the money you make.  Tax laws are tricky and constantly changing, so arming yourself with the tax experts to put more money in your pocket and less in the tax man’s is essential.

The most common income items to include are:

• Wages or salary from employment
• Interest or distributions from investments
• Government benefits such as pensions and parenting allowances
• Income from trading or carrying on a business
• Proceeds from the sale of income earning assets (such as property, shares or managed investments)
• Foreign sourced income may also be subject to tax in Australia too

Now let’s look at what you can get back.  Generally you can claim expenses that relate to earning your income.  Sometimes these appear as everyday things that are easy to overlook.  Things like motor vehicle running costs, home office, telephone or mobile phones, computers or laptops.  If you use any of these things in the course of earning your income, you may be entitled to a deduction for the costs incurred.  Self education costs are another area where deductions may also be allowable to help reduce your tax.

The critical thing to remember is to be able to substantiate your entitlement to your deductions with:

• Evidence of the costs incurred (for example, receipts and invoices for expenses incurred)
• Evidence of the connection to your income earning activities (for example, logbook for your motor vehicle)

Substantiation really is the key to improving your deduction claims.  The more support and evidence you provide to your accountant, the better your tax outcome is likely to be.

For rental property owners with homes built after September 1985, a quantity surveyor report can be worth its weight in gold.  This report lists the building costs and depreciable items for your property.  This alone can result in significant tax savings.

Another vital piece of information to obtain is the details of your private health insurance details.  With sufficient private health insurance cover (namely, hospital cover, not just ancillary), you may avoid the additional Medicare Levy Surcharge of 1% for higher income earners.

For further details about keeping your wealth for this financial year speak to our team today on (08) 6212 0900 or visit our website www.theintelligencegroup.com.au.

To assist The Intelligence GroupTM in preparing your tax returns, you can also visit our website www.theintelligencegroup.com.au and download a copy of our accounting questionnaire that goes through a myriad of income and expense items that you may need to include in your tax return.

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