It is quite possible that this is the most common question I get asked in my role as an accountant!

The first thing I always point out when I’m presented with this question, is that the Australian taxation system is designed so that the amount of tax your employer withholds from your salary and wage should equate to your tax liability when you lodge your tax return.

In most cases you shouldn’t have to incur many, if any, expenses relating to your employment, but of course there are always exceptions…

In addition, I always ask the taxpayer if they understand that for every dollar they spend on work related expenses, they only save an amount equivalent to their marginal tax rate and will still be out of pocket for the balance of the dollar (and then give an example relevant to them so they can see the impact in dollars and cents).

In conjunction with the National Tax Accountants’ Association, The Tax Chic and LMB Consulting now have access to a fabulous new tool…”Deduction Finder”…as the name suggests, the deduction finder software has been designed to give you an indication on every deduction you may be entitled to claim…and provides some great explanations regarding the items you are not able to claim…

Want to find out what deductions might be applicable for your occupation?  Contact The Tax Chic and LMB Consulting for a consultation.

Regards