7 things to claim at tax time

By John Flavell, CEO Mortgage Choice

With end of financial year now right around the corner, it is more important than ever to understand exactly what can and cannot be claimed.

If you are a property investor, there are a number of expenses you can claim this tax time.

These deductions could potentially include:

Advertising for tenants: Typically, costs associated with the advertising of your property in the newspaper or online can be claimed as a tax deductible expense.

Maintenance: Property repairs and maintenance can be claimed as tax deductions, however, it’s important to refer to the Australian Taxation Office to check what expenses must be claimed at the time of repairs and what can be claimed at the end of the financial year.

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Land Tax: If you happen to own more than one investment property in one state, land tax can be claimed as a tax deduction. In most cases, you will only be able to claim a certain percentage of the land tax.

Real Estate Agent Fees: Fees pertaining to the use of property agents, as well their commissions, can be claimed as a tax deduction. The fees paid to agents are usually a percentage of your rental income, which would allow you to claim the majority (if not all) of the commission paid to the agent.

Of course, it isn’t just property investors who are able to claim certain deductions at tax time.

If you work from home for example, you are eligible to claim multiple expenses relating to your dwelling, including:

Home office: If you work from home, you should be able to claim some of the expenses you incur, such as phone, internet, heating, lighting and depreciation of equipment. The amount and extent to which you can claim deductions depends on a number of factors, so it pays to speak with your accountant.

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Mobile phone: If you make work related calls on your personal mobile phone, you may be able to claim these as a tax deduction. Of course, if you are going to claim work-related calls made on your mobile as a tax deduction, it is important to do it the right way. Make sure you keep a log of the work related calls you make or review your monthly statement and look at the percentage of work-related calls you make.

Vehicle: If you travel for work, you may be able to claim your travel expenses as a tax deduction. You can claim vehicle and other travel expenses directly connected with your work, but generally you can’t claim for normal trips between home and work – this is considered private travel.

Of course, just knowing exactly what you can and cannot claim isn’t the only way to boost your tax return this year.

Planning ahead can also help you maximise your refund and ultimately inject more money in your back pocket.

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Simple things like knowing your budget and whether or not you can afford to pay for certain expenses before 30 June, thus increasing what you can claim, can help you to grow your overall refund.

For example, many people may not realise that income protection insurance is a claimable tax deduction.

If you already have a policy and can afford to pay your premiums for the next 12 months in advance, doing so before July will mean you are able to claim the cost as a tax deduction for the financial year. It is important to note however, that income protection insurance is not deductable if funded through your superannuation.