By MELINDA ANDERSON

TAX TIPS FOR PEOPLE ON WAGES

· Home office claims – record keeping is onerous. If claiming a set rate per hour (67c per hour) you must have records – no averaging allowed. The best method to claim for working from home, from our experience is the actual method – receipts for expenses, percentage of electricity and gas, internet, and so on.

· Motor vehicle usage – set rate method. The set rate per kilometre is now 85c per kilometre. Log book method – different rules have been implemented for fully electric vehicles.

· GoFundMe contributions and amounts paid into raffles are generally not tax deductible donations. Donations that can be claimed, must be paid to a registered charity (deductible gift Recipient – DGR).

· Where your work related expenses total more than $300, you must have receipts and/or substantiation for each expense claimed.

· It is important to declare your spouse details on your tax return and their income to ensure entitlements for certain rebates are calculated correctly.

· Self education expenses – the course/cost must have a connection with your current job and/or lead to increasing your current income-earning activities.

ATO IS TARGETING…

· Taxpayers with high work related expenses;

· Short term rental property owners and apportionment of expenses (for private purposes);

· Rental property owners – repairs and maintenance claims;

· Individuals selling goods online (ATO receive information from these platforms on how much you sell); and

· NDIS, support workers and carers – expenses claimed.

THINGS TO CONSIDER FOR BUSINESS OWNERS

· Equipment write off – the cap to write off a business asset is now $20,000 (per item) for SBE’s using the Simplified Depreciation measures (last financial year was unlimited).

· Motor vehicles are subject to the car cost limit, $68,108 for 2024. Vehicles above this amount – depreciation and GST cannot be claimed.

· Primary producers can immediately deduct the cost of fencing and water facilities (dams, tanks, bores, pumps etc). Fodder storage assets (hay sheds, silo’s grain storage sheds, etc) are also eligible for immediate write off, if purchased during the financial year.

· Small business energy incentive – an extra 20 percent deduction to the value of the cost of business assets that utilise less electricity or fossil fuels than another asset (a maximum deduction of $20,000 exists). Applies to assets bought, installed and ready for use between July 1, 2023 and June 30, 2024. Documentation must be kept to support the claim (proof the asset is more efficient than another one on the market at the time of purchase).