As we roll into another financial year, there has been a lot of press about big tax changes and cracking down from the Australia Taxation Office.
In addition to last week’s announced personal tax changes, one of the big focuses in the past 9 months from the ATO has been lodgement and debt collection. The ATO are doing all they can to track down those with outstanding income tax returns and are handing out fines for non-lodgement of income tax returns.
In the 2019 financial year income tax returns, the ATO have come out and said they are going to be closely monitoring the claims people are making at item D3 – Work related uniforms and protective clothing and also rental deductions. Your work related uniform must fall into one of the categories to be tax deductible – a distinctive non-compulsory uniform registered with AusIndustry, a distinctive compulsory work uniforms, occupations specific clothing or protective clothing. You may also be able to claim up to $150 in laundry expenses without receipts.
With rental deductions, there have been no changes this year in what you can or can’t claim. Just remember that you can no longer claim travel to inspect your rental property or claim a deduction for decline in value of certain second hand depreciating assets (unless in the business of property investing). You may still be able to claim a deduction for capital works.
This advice is general in nature and if you would like specific tax advice, please contact a tax agent to discuss your situation.
Tim White CA
Director – White & Associates Accountants 6642 8119