As we enter the winter season, so too do we start thinking again about the EOFY. End of financial year preparation involves collecting up those receipts and records, making sure you file them in the right places, and the familiar sense of dread, thinking what if I inputted the wrong employer ABN or spelt somebody’s name wrong and that counts as tax fraud?

Thankfully, with some well-informed financial planning and great organisational skills, preparing for EOFY can actually be pretty simple. And we’re here to outline how.

In this article, we’re delving into how you can make the most of your FY24 tax return during the end of the Australian financial year, with our complete rundown on all the ways you can save this tax time – from deductions to depreciation and more.

Work-related expenses

There are a number of work related expenses you can claim back when the end of the financial year rolls around. If you travel for work (excluding your commute), you can record petrol costs or miles driven, to claim back by distance travelled or fuel for a certain proportion, or a set ‘cent per kilometre’ or equivalent agreement.

For some occupations, you can claim back your uniform or protective clothing. Occupation-specific clothing is defined as garments that wouldn’t be worn outside of work, for example safety clothing such as steel-cap boots and high-visibility vests, or clothing specific to your company or industry, for example a judge’s wig or healthcare scrubs. Suits and corporate clothing don’t count, unfortunately! If your work requires specific tools and equipment that cost less than $300 to buy, you can usually claim these back too.

Even if you work from home, you can still claim back some work-related expenses, for example on office supplies, electricity and internet. The ATO has various set-ups to calculate your expenses, including a fixed-rate method, actual cost method, and shortcut method.

Deductions for property investors

If you’re a homeowner renting your property out as a landowner, you can claim deductions for mortgage interest, maintenance costs, and value depreciation. Your investment property can also benefit from tax deductions for costs related to earning interest, dividends, or other investment income, such as account-keeping and investment advice fees.

If you acquired the property during this financial year, you can also claim back property management fees, council rates, water charges, interest on the loan used to buy it, state government land tax, and the cost of advertising your property to future tenants, amongst other associated costs. 

Gifts & charity donations

Did you know that as a reward for being a good samaritan, you can actually claim back tax paid on gifts and donations to charity? Just make sure you keep your receipts for your donations, so you can prove where the money was spent. 

If you donate $1000 over the year, that means your total taxable income is reduced by $1000. So, recording all your donations isn’t just about showing off your generosity – it can really bring down the total amount you’re taxed.

Note: This is only valid for donations made to charities registered as a Registered Deductible Gift Recipient (DGR). You can check an organisation’s status on the Australian Business Register or the ATO.

Health expenses

Most devices, treatments and medicine that aid your health are not tax deductible. However, it’s worth being aware of those that are so that you can make the most of the Australia EOFY for anything you are entitled to claim back. Certain aids and appliances deemed necessary for people living with disabilities, such as hearing aids, wheelchairs, and artificial limbs, would fall under this category. 

For those receiving aged care, or assistant care for people living with a serious disability, certain services and associated fees can be tax deductible. For example, accommodation costs, home nursing, and mobility or personal assistance paid services. You will need to keep detailed records and receipts of these costs in order to claim them. 

Superannuation contributions

The specifics and limits will vary according to your superannuation limits, but voluntary contributions to your superannuation are also tax deductible. This is income added to your superannuation fund that isn’t automatically provided by your employer, whether it’s a pre-agreed recurring monthly amount, a proportion agreement of your annual salary, or one-off personal contributions.

If you have made any voluntary super contributions over FY24, then be sure to add these contributions in as a deduction for this coming tax return. You can find receipts and more information about your voluntary contributions via your Superfund app as well as in email statements.

Benefits for small business owners

If you run your own business, you may be eligible to receive certain tax concessions that have been designed specifically for small business owners. These 4 small business CGT concessions are as follows:

• small business 15-year exemption
• small business 50% active asset reduction
• small business retirement exemption
• small business roll-over

You can find more information about these concessions at the ATO website.

Alongside these concessions for small business owners, sole traders, athletes, and musicians/artists, authors, and any other individuals who work in the entertainment industry may also be eligible to receive the special professionals, sportspersons and entertainers concessions. The main benefit of this concession is that it allows for income averaging, which is basically where you may be eligible to pay a lower tax rate in years where you earn an above-average income.

Business related travel, accommodation and food costs can be claimed back even when you apply for these concessions, and certain assets (up to a certain amount) can also be deducted. Remember, you’ll also need to file a tax report for your small business separately from your own personal one, unless you’re a sole trader.

Conclusion: Claiming back this tax time

Despite our (changing) reputation as a dull city, us Canberrans dislike the prospect of sitting down to complete a tax return as much as any other Australian. That said, who doesn’t want to make the most of their assets, and claim back all the expenses they can?

In truth, however, making the most of the financial year is all about knowing all the different areas of expenditure that you can claim back or receive tax deductions from. Subsidies and state agreements change over the years, so it’s always worth checking before you file your report, to make sure you’re not missing out on any benefits.

Nowadays, there are handy online tools, calendars and apps that can prompt you along the way, so be sure to make the most of them and get all your numerical ducks in a row. And that includes dedicated accountants! If you have multiple streams of income, or don’t feel too confident playing the numbers game, working with a tax agent can help to ensure that you not only file out your tax records accurately, but declare everything you can to help you get more from your personal and business tax returns this coming EOFY.