How do Tax Deductions Work in Australia?

During the year, you may have to pay some expenses for work purposes. When the end of the financial year comes, you’re entitled to claim these expenses as tax deductions. This will help you lower the total amount of taxable income and the amount of tax you have to pay.

In Australia, the Australian Taxation Office (ATO) determines which expenses are tax deductible and which ones are not. You can claim tax deductions for most business or work-related expenses, however, you need to make sure you consider:

• Keeping accurate and complete records for your expenses
• Using the correct methods for calculating and reconciling the amounts you claim
• Reporting all income and deductions to the ATO at the right time

Whether you’re an individual or a business owner, it is important to always consult with your accountant or tax professional to make sure you are claiming your tax deductions correctly. 

Source: Quickbooks