As a millennial living in Australia, it’s important to have a solid understanding of personal finance skills, including how to track deductions for work-related expenses. This can help you maximize your tax refund or minimize your tax bill, ultimately saving you money and helping you get the most out of your income. Here’s how to do it:
- Keep good records: One of the most important things you can do to track your deductions is to keep good records. This means keeping receipts for any expenses you incur in the course of your work, whether it’s office supplies, travel expenses, or professional development courses. It’s also a good idea to keep a record of the dates and purposes of these expenses.
- Know what expenses are deductible: Not all expenses are deductible in Australia, so it’s important to know what you can claim. In general, any expense that is necessary for you to perform your job is deductible. This includes things like office supplies, professional development courses, and travel expenses. However, you can’t claim personal expenses like your rent or groceries.
- Use tax software: There are many tax software options available in Australia that can help you track your deductions and prepare your tax return. The easiest way to do this is to use the tax deduction feature of
myATOapp here. These programs allow you to input your income and deductions and will help you calculate your tax liability.
- Consult with a professional: If you’re unsure about what expenses you can claim or how to track your deductions, it may be helpful to consult with a tax professional. A tax lawyer or accountant can help you understand the rules and make sure you’re maximizing your deductions.
Tracking your deductions for work-related expenses may seem like a tedious task, but it’s an important aspect of personal finance skills that can save you money and help you get the most out of your income. By keeping good records, knowing what expenses are deductible, using tax software, and consulting with a professional, you can make sure you’re taking advantage of all the deductions you’re entitled to as a millennial living in Australia.