Top Tips To Maximise Your 2012 Tax Refund

1. Know the allowable tax deductions for your occupation – the average amount claimed in personal tax returns for work related expenses in Australia is $1,920 per year. So to maximise your tax refund this year, make sure you know what you are allowed to claim for your occupation and then keep the right records so that the Tax Office can’t disallow your claims.

In 2012 the Tax Office auditors are targeting anyone who makes large or unusual claims for their occupation, so make sure you have the right records to prove your claims before lodging your return. Specific occupations the ATO will be focusing on for large claims in 2012 are Defence Force non-commissioned officers, information technology managers and plumbers.

2. No receipts are needed for items costing less than $10 – you don’t need to keep receipts when you buy items for work costing less than $10 to be able to make a claim on your tax return. You can claim up to $200 for these small expenses, provided you keep a diary record with the information that would normally be shown on a receipt (date, business name, item purchased, price).

This also applies to donations. If you have made donations following the many natural disasters in Australia or New Zealand this year you can claim a tax deduction of up to $10 without needing to have receipts. Of course if you have donated more than $10 to a registered charity, you can claim the full amount as long as you have kept a record.

3. Claim for internet, phone and pay TV use – most people would use one or more of these services during the year for their work. To be able to claim a deduction in your tax return you will need to keep receipts confirming how much you have paid and also keep a diary record to work out what proportion of the expense is work related.

Your diary should be kept for one month of the year and needs to identify how much of the service is used for work and personal use.

4. Claim for using your car for work – the simplest way to claim for car expenses is to estimate the number of kilometres you travel for work purposes during the year (you can claim up to a maximum of 5,000km per vehicle). Trips could relate to attending meetings, conferences or training courses, travelling to pick up supplies, equipment or tools, or travelling between job sites or office locations.

You will need to be able to show the Tax Office how you have calculated the number of kilometres you claim for, but you don’t need to keep any receipts for petrol, car repairs or other running costs.