Growthfront Accounting’s Essential Guide to Tax Deductions

Accounting Solutions Tailored to Your Needs, Your Go-To Source for Accounting Knowledge and Tools.
September 24, 2024

# 1. Get Expert Help: Don’t Leave Money on the Table

Let’s start with the smartest move you can make—get professional help. Tax laws are complicated and constantly changing. Growthfront Accounting’s tax professionals have the expertise to help you uncover deductions you didn’t even know were possible. We handle all the tricky details, ensuring your return is accurate, comprehensive, and maximized for your benefit. Plus, our fees are tax-deductible, so you’re saving even more!

Pro tip: We guarantee satisfaction and the highest possible refund, giving you peace of mind and minimizing your tax stress.

# 2. Claim a Deduction for Expenses Incurred to Earn Income

A simple rule of thumb: If you’ve spent money to help you earn your income, chances are it’s deductible. These expenses can significantly reduce your taxable income, so don’t overlook them. Common work-related deductions include:

  • Travel between worksites or client visits: Whether it's driving from one office to another or visiting a client, these trips are deductible. Just make sure you track mileage!

  • Work-related travel, meals, and accommodation: If you’ve had to travel for business purposes, keep your receipts for meals, hotels, and transportation. But remember, you can only claim what you’ve actually spent

  • Tools and equipment: Whether it’s a laptop or specialized work tools, you can claim a deduction. If you use these items partly for personal use, you’ll need to work out the work-related portion and only claim that.

# 3. Boost Your Career with Study – and Deduct the Costs

If you’re investing in education to improve your skills in your current job, those expenses can be claimed. From course fees and textbooks to accommodation and meals when studying away from home, it’s all deductible. You can even claim depreciation on your computer and other study-related tech.

  • The course must be directly related to your current job.
  • It should improve the skills you need for your role.
  • It must have the potential to increase your income in your current line of work.

This means no claiming for unrelated studies or personal development courses, but if it's relevant, you’re good to go.

# 4. Working from Home? Don’t Miss These Deductions

If you're one of the growing number of people working from home, you could be leaving money on the table if you’re not claiming a portion of your home-running costs. The key is to calculate the work-related percentage of these expenses:

  • Heating, cooling, and lighting: You can claim a portion of your utility bills if they relate to your home office.
  • Depreciation of office furniture and equipment: Got a desk, chair, or computer you use for work? You can claim depreciation over time.
  • Stationery, phone, and internet costs: These everyday items are claimable too—just figure out the work-related portion.

By accurately tracking your home office expenses, you can significantly reduce your taxable income.

# 5. Keep Receipts – Yes, They’re Annoying, but Vital

No one enjoys piles of paper receipts. Fortunately, the ATO has moved into the digital age. Electronic copies of receipts are now valid, so make it a habit to snap photos or store your invoices digitally. Use cloud storage or apps to keep them organized, making tax season so much easier!

# 6. Say Goodbye to Paperwork Piles – Embrace the Digital Era

No one enjoys piles of paper receipts. Fortunately, the ATO has moved into the digital age. Electronic copies of receipts are now valid, so make it a habit to snap photos or store your invoices digitally. Use cloud storage or apps to keep them organized, making tax season so much easier!

# 7. Stay Honest: Don’t Inflate Your Deductions

There’s nothing worse than thinking you’ve got a huge refund coming, only to have the ATO audit your return and penalize you. Overstating your deductions might seem tempting, but it’s not worth the risk. Stick to the facts and claim only what you’re entitled to—and make sure you have the documentation to back it up. The penalties for false claims can be steep.

# 8. Don’t Rely on ATO Pre-Fill Data – It Could Be Wrong

It’s tempting to let the ATO’s pre-filled data guide your tax return, but doing so could leave you short-changed. Banks and employers often submit data late, which means the pre-filled information could be outdated or incomplete. Always cross-check it against your own records. If there’s an error, it’s on you to correct it—not the ATO.

Pro tip: Using your own, up-to-date financial information ensures you’re getting the most accurate refund.

# 9. Get Organized Before Tax Time Hits

The last thing you want is to be in a frenzy when tax season arrives. Start organizing your receipts, invoices, and records early in the year so you’re not scrambling in June. A little organization throughout the year will make your life easier and ensure you don’t miss out on any deductions come tax time.

# 10. Don’t Forget the Basics

The simplest mistakes can delay your refund. Make sure your contact details are up to date with the ATO—especially if you’ve moved or changed jobs. Also, double-check that your bank details are correct so your refund isn’t held up. Even small things like a misspelled name can throw a wrench in the process.

Pro tip: The sooner you get these basics right, the faster you’ll get your refund.

Tax time doesn’t have to be a stressful ordeal. With Growthfront Accounting, you can rest easy knowing you’ve maximized your deductions and filed a bulletproof return. Get in touch with us today and let our experts make tax time work for you.