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Five expenses you can’t claim as a tax deduction

As the countdown begins to Australia’s tax return lodgment date, many individuals in the country may be hurrying to find a few extra possible tax deductions to claim.

However, in the rush before the deadline, it is important not to waste time claiming deductions for expenses or items that are commonly thought of as tax deductible, but are knocked back by the ATO.

Volunteer work
Individuals cannot claim tax-deductions for expenditures while volunteering for charities or other not-for-profit organisations e.g. petrol used when driving out to help community efforts.

Police clearance and record checks
While some checks are required as a prerequisite to secure certain types of employment, the cost of these checks are not allowable deductions (the reason being that the cost is incurred at a point that is too soon to be associated with the employment income).

Vaccinations
Individuals, even those who work for certain airlines, cannot claim deductions for the cost of vaccinations against diseases they may come in contact with during the course of earning an income.  

Driver’s licence
Even if it is a condition of a person’s employment, the cost of a driver’s licence is not an allowable deduction.

Eviction of a tenant
Expenses incurred by rental property owners when raising eviction proceedings against a tenant are not allowed as a tax deduction to the property owner.

Posted on 12 September '16 by , under Tax.

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What to consider when consolidating your super

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

  • Exit fees
  • Insurance policies
  • Investment options
  • Ongoing service fees
  • Performance of the funds

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

  • Your tax file number.
  • Proof of identity. This could include your driver's license, birth certificate or passport.
  • Your fund's superannuation product identification number (SPIN).
  • Your fund's unique superannuation identifier (USI).
  • Details of your previous fund.

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