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  • Writer's pictureAmanda Amey

Common Tax Deductions made by Individuals

Updated: Mar 4, 2021

1. Depreciation on Assets, costing $300 or less

Salary and wage earners and rental property owners will generally be entitled to an immediate deduction for

certain income-producing assets costing $300. Provided they are purchased before 1 July 2020.

Some purchases you may consider include:

- books and trade journals;

- briefcases/luggage or suitcases;

- calculators or electronic organisers;

- electronic tablets;

- software;

- stationery; and

- tools of trade

2. Clothing expenses

Individuals can purchase or pay for work-related clothing expenses prior to the end of the income year such as:

- compulsory (or non-compulsory and registered) uniforms

Uniforms generally must have a Logo, and normal suits and ties do not constitute a uniform

- occupation specific clothing ie: a Lab coat

- protective clothing; and

- other associated expenses such as dry-cleaning, laundry and repair expenses

3. Self Education expenses

Individuals could consider prepaying self education items before the end of the income year:

- course fees (but not HELP or Hecs repayments), student union fees, and tutorial fees; and

- interest on borrowings used to pay for any deductible self education expenses.

- They could bring forward purchases of stationary and text books (i.e., those which are not required to be depreciated).

4. Other work-related expenses

Employees can also prepay any of the following expenses prior to 1 July 2020:

- union fees;

- subscriptions to trade, professional or business associations;

- magazine and professional journal subscriptions;

- seminars and conferences; and

- income protection insurance (excluding death and total/permanent disability).

Note: When prepaying any of the expenses above before 1 July 2020, ensure that any services being paid for are to be provided within a 12 month period that ends before 1 July 2021. Otherwise, the deductions must generally be claimed proportionately over the period of the prepayment.

This articles intention is to inform rather than advise and is based on legislation at the time. Each Taxpayer’s circumstances vary so we strongly recommend that you discuss this information with your Tax Agent, Accountant or Bas Agent before implementation. If you take, or do not take action as a result of reading this article, we accept no responsibility for any financial loss incurred.


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