The end of the financial year is but days away, which means the stores are overflowing with sales, and there’s still time to make some tax-deductible purchases. You might be wondering what exactly you can buy at the last minute in Australia that will contribute to your tax return later, so we’ve consulted an expert to help.
Mark Chapman, Head of Tax Communications at H&R Block Australia, has provided us with his top recommendations for last-minute EOFY purchases that you can claim back on your tax return later.
Purchases you may be able to claim on your tax return in Australia
Professional memberships and subscriptions
Did you know that subscriptions that are associated with your work are claimable on tax? It’s true, as Chapman explained:
“If you’re a member of a professional or trade association as part of your work, you can claim a deduction for the amount you pay in subscriptions. This also covers union fees if you’re a member of a trade union, as well as subscriptions to trade or professional magazines.
“Don’t forget, if you prepay your fees or subscriptions for next year before 30 June, you can claim a deduction this year, which can be a useful timing benefit.”
Similarly, making a last-minute donation to a charity can also contribute to your tax refund. You can claim deductions for donations of $2 or more provided you have a receipt and that the charity is registered.
Fashion forward and tax deductible? Sign us up. A handbag is technically a tax purchase if you’re using it specifically to carry things for work.
“If you use a bag for work purposes – e.g. to carry iPads, phones, calculators, stationary or anything else you need for work, you can claim a deduction for the cost of the bag,” Chapman explained.
“Be careful though; the handbag needs to be fit for work purposes and actually used for work purposes. You might struggle to claim that new Gucci bag but a more modest bag – genuinely used only for work purposes – should be claimable. For men, a work briefcase, satchel or backpack should also be claimable.”
Income Protection Insurance
Who knew insurance was a viable tax claim? However, in this instance, it’s only for income protection insurance, not other categories.
“That doesn’t include life insurance, critical care insurance or trauma insurance. It also excludes policies paid for out of your superannuation contributions,” Chapman said.
Make a tax-deductible super contribution
Making a voluntary contribution to your super account can be used as a tax claim if you have the cash to spare right now. According to Chapman:
“Provided the total amount of your contributions (including the contributions made on your behalf by your employer) does not exceed $27,500, this can be a great way to boost your retirement savings and claim a tax deduction for the personal contribution. The payment must be made by June 30th and you need to advise your super fund that you’ve made the payment by the time you lodge your tax return.”
You can find a standard form to complete for claiming your super deduction on the ATO website.
We recently covered the federal government’s Super Co-contribution scheme, which may also give you some bonus cash from making a voluntary super payment.
If you’re looking for more tips heading into EOFY check out our guide to all things tax time.
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