Five important tax deductions that are easily overlooked

Australians have been reminded about five important tax deductions they can claim that can often be forgotten about.

Australians set on getting the most out of this year’s tax return have been issued a reminder about five things that could be easily forgotten.

Submitting claims in every area possible may seem like a tall task, but the pay off could be a significantly bigger return.

H & R Block’s director of tax communications, Mark Chapman, has shared five things that can sometimes be overlooked when submitting a return.

Professional memberships and subscriptions

Members of professional and trade associations can claim part of their fees on tax, as well as union memberships, Mr Chapman wrote for Yahoo Finance.

Subscriptions to trade or professional magazines and investment magazines for investors could also be claimed, he said.

Mr Chapman said fees for the coming year could be paid in advance and claimed as a deduction in this year’s claim which he said could “be a useful timing benefit”.

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Australians have been reminded about five things they can claim on tax. Picture: AAP Image/April Fonti

Rental property expenses

Mr Chapman said there were plenty of expenses that could be claimed on rental properties owned by investors on top of the deduction for interest on the mortgage, which he said most people were already familiar with.

Deductions could be claimed on this like gardening, bank fees, pest control, security patrol fees, bookkeeping fees, repairs, end of lease cleaning, rental agent fees and strata costs.

Land tax, credit checks for prospective tenants, debt collector fees, key cutting, and servicing of water heaters, smoke alarms, airconditioning, and garage mechanisms could also be claimed, he said.

Tax agent costs

Costs associated with hiring a professional to file a tax reduction for the previous year could be claimed as a deduction, Mr Chapman said, along with money used to travel to and from the appointment.

Any advice people have paid for throughout the year would fall under the same umbrella and could be claimed as well.

Income insurance

Premiums paid out for income insurance are tax deductible too, Mr Chapman said.

He warned the same did not apply to life insurance, critical care insurance or trauma insurance.

Policies paid for from superannuation contributions were also not included, he said.

Making use of the five items could significantly increase your return. Picture: Supplied

Superannuation

An income tax deduction can be claimed if you make additional concessional contributions – up to the cap – to your superannuation.

By doing this you can top up your superannuation total, so long as the $27,500 cap isn’t breached.

Concessional contributions are inclusive of super payments made by your employer, as well as salary sacrificed contributions, Mr Chapman said.

“So, if you have some spare cash, this can be a great way to boost your retirement savings and claim a tax deduction for doing it,” he wrote.

The payment just has to have been made before the end of the tax year, and your super fund has to be informed about your payment before you lodge your 2023 return.

Mr Chapman said there was a form on the ATO website that a super fund or account could provide guidance on.