The 2018 tax season is finally here. If you are preparing for your tax return and wants to maximize the tax refund, please read on.
This time, the Australian Taxation Office is focusing its audit attention on the individual tax return and especially work-related expenses.
From the 2017 budget, Australian Taxation Office was handled down millions of dollars from the Federal Government to combat and enhance the compliance aspect of the taxation system.
The focus audit area of this year from the ATO would be in the other work-related deductions and vehicle expense. If you are working, and is preparing the 2018 tax return and wants to maximise the tax refund, please be careful of the amount of deduction you claimed.
As one of the most trustworthy and professional accountants and tax agent in Sydney and Ashfield, not only will we help you to maximise your tax refund in the most compliance manner, but we will also ensure that the audit or compliance risk are being rectified. This year, we will employ a specialised tax software, which will compare your claimed work-related deduction against the ATO benchmark by your occupation and age bracket and area of residence.
If the end result is that the benchmark is being exceeded, we will talk to you, and ask you more questions, and ensure again that you have kept all of the invoice evidence and diary to claim those expenses.
It is important to note that to claim to vehicle-related expense, you must use either the logbook method or the cents per km method. Hence for the logbook method, it is important to note that you must keep a logbook during the income tax year for at least 12 continuous weeks. That 12 week period needs to be representative of your travel throughout the year. Each entry must contain the date of the trip, the open odometer reading, the closing odometer read, the purpose of the trip, the total kilometer traveled, and most importantly it must be signed on each occasion. Once you had done a valid logbook, as long as your situation does not change, you can use the logbook for the next years. However, if you sell your car or occupations changes, then you need to do another logbook. It is paramount to remember to use the logbook, you need to keep the valid logbook and also all of the invoices for the vehicle expenses.
Another focus areas would be on the laundry expense and uniform expense.
It is important to note that for Laundry expense to be applied, one needs to have a valid uniform or protective clothing meeting ATO standard. Uniform must either be registered, for example, police uniform, firefighter uniform, or uniform with company logo acceptable to ATO standard.
For Laundry expense to apply, one needs to have a diary if the claim is under $150, and the diary must show how many times the uniform had been washed, and how it is washed, whether it is washed by itself or with other clothes. The rate for how it is washed will also affect how much you can claim.
Please give us a call, as one of the most trustworthy and professional accounting firm and tax agent in Sydney and Ashfield. We would be able to look after your tax affair and help you to maximise your legal entitlement to the work-related deduction and at the same time, ensure that your compliance or tax audit risk is maintained at a minimum.
Please give us a call on 0410-829-900 and talk to John, or visit our office at suite 18, Level 2, 6 Holden Street Ashfield NSW 2131, it is just around 4 minutes walk from the Ashfield Train Station.