Tax tips for employees and contractors

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Keeping in control of your taxes can be confusing, and there are many rules to follow. With the ATO checking work-related expenses, looking for undeclared income and data-matching more information than ever, it’s important to get your tax return right.

Lodge on time

Are you a resident for tax purposes?

Are you in business?

Working from home expenses

COVID-19 test expenses

From 1 July 2021, if you’re an employee, sole-trader or contractor and you pay for a COVID-19 test for a work-related purpose, you can claim a deduction if you:

– use the test for a work-related purpose, such as to determine if you can attend or remain at work

– bought a qualifying COVID-19 test

– pay for the test yourself

– keep a record to prove that you incurred the cost (usually a receipt), an

– were required to take the test for work purposes

You can only claim the work-related portion of your expense on COVID-19 tests. For example, if you buy a multipack of COVID-19 tests and use some for private purposes (such as by other family members or for leisure activities), you must only claim for the portion of the expense you use for a work-related purpose.

Self-education expenses

Car expenses

Travel expenses

Depreciation

Expenses for contactors

Donations

The ATO will prefill your tax return with the information they have received about gifts and donations. Make sure you add in any donations that weren’t included where the receipt shows your donation is tax-deductible. Also, include donations made through workplace-giving. You can also claim a tax deduction of up to $10 for certain donations without a receipt.

Superannuation contributions

Tax offsets

Ready to get started? Download our questionnaire or our guide to services here, or contact us here for more information. We look forward to helping you “Go Beyond the Numbers”

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