“If you lodge your
own tax return, the
best time to do it
is from late July”
Eligible assets include most assets
used in the running of a business, such
as tools for use on a worksite, like drills,
ladders and toolboxes; equipment,
including a fridge or a grill; and
shelving and storage.
NOTE Visit ato.gov.au/tradies
to learn more.
Q
Finally, when do you
recommend is the
best time to lodge
your tax return?
Photography Getty Images
A
Costs more than $300: you can
claim a deduction for the cost over
a number of years (that is, decline
in value or depreciation)
Costs $300 or less: you can claim
an immediate deduction for the
whole cost of the work product.
If you are buying depreciable assets
for your business, such as tools or
machinery, you can immediately
deduct the business portion of the
cost of the asset under temporary
full expensing rules – but you need
to meet the eligibility criteria. The rules
apply to new depreciable assets and
the cost of improvements to existing
eligible assets that are first used
or installed by June 30 2023. It also
applies to second-hand assets
if you’re a small business.
“If you’re an employee, you can claim a deduction
for tools if you use them for work purposes”
If you lodge your own tax return,
the best time to do it is from late
July, when information from employers,
banks, health funds and government
agencies is automatically pre-filled
into your tax return. All you need to
do is check your information is correct
and add anything that’s missing.
We see lots of people making
mistakes when they rush to lodge in
early July, which can also delay your
return from being processed. But if
you wait just a few weeks, most of this
information should be there waiting
for you. Lodging at the end of July
will also give you time to find those
receipts for work-related expenses
since July 1 last year to maximise
your tax deductions.
If you use a registered tax agent
to lodge your return, they will work
with you to determine the best
time to lodge it.
DISCLAIMER: This information is of a general nature only and
should not be regarded as financial or legal advice. It does not
take into account your individual circumstances or objectives. You
should always seek advice from a suitably qualified professional.
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