Money pro reveals the FIVE most overlooked tax deductions in Australia: Tax 2022 hacks

A finance expert has revealed the five most overlooked tax deductions in Australia – including not claiming professional memberships and forgetting about rental property expenses.

Mark Chapman, Director Of Tax Communications, H&R Block told Yahoo Finance the ways Australians can claim back thousands in taxes as many get ready to file in coming weeks.

Firstly, he advises claiming membership fees for any professional or trade associations where you may be a member.

This can cover membership fees to trade unions or subscriptions to investment magazines.

Mark also advises prepaying your fees or subscriptions for the next tax year before 30 June 2023, then you can claim a deduction this year.

The tax expert also revealed that people with rental properties can not only claim a deduction in interest on their mortgage but also work on the house, such as gardening, repairs, advertising for tenants and getting keys cut.

You can even claim back a deduction for the cost of this year’s tax return if you paid for a tax professional to complete last year’s tax return, Mark revealed.

This includes any travel costs you incurred visiting the agent. 

Any time you’ve paid for tax advice over the years is also deductible.

Mark also advised anyone who pays insurance premiums against loss of income can claim this on their taxes.

However, this doesn’t include life insurance, critical care insurance or trauma insurance. 

The final little known financial hack Mark shared was how to make additional concessional contributions up to your cap (currently $27,500) and claim an income tax deduction for doing it.

‘This means you can tax effectively top up your super, provided you don’t breach your concessional contributions cap,’ he revealed.

‘The super guarantee payments made by your employer, as well as any salary sacrificed contributions, are also included in your concessional contributions so effectively the amount you can pay into super through a tax deductible contribution is the difference between those other contributions and the $27,500 cap.’

This means if you have spare cash, you can boost your retirement savings while also claiming a tax deduction.  

This payment must be made within the current tax year.

If you chose to boost your super, you also need to advise your super fund that you’ve made the payment by the time you lodge your 2023 return.

It comes after the Australian Tax Office (ATO) advised that from July 1, 2021 onwards, people who paid for a rapid antigen test for work-related purposes can claim them as a deduction.

You may also be able to claim a deduction for items such as gloves, face masks or sanitiser used for work purposes, so make sure you keep receipts. 

But the biggest pandemic-related claim for most people will be an allowance of 52c for every hour spent working from home.

Ten tax hacks to boost returns

Australians can begin to file their tax returns after June 30 and have until October 31 to do so.

Below is a list of 10 ways workers can make the most of their tax return.

1. Work bag 

Residents can claim back the money they spent on a bag as long as it is used primarily to carry work supplies between their home and the office.

2. Travel

Drivers can keep a logbook of the kilometres they travel and should hold onto the receipts of any expenses they pay for including food and accommodation.

Workers who are required to drive around a lot can also make a claim on their tax return

3. Occupation and industry guide

Workers have been told to check the occupation and industry guides set out by the ATO to find out what items they can claim back in their industry.

4. Work from home

Employees are still able to claim 52c for every hour they work from home.

5. Pre-pay expenses for investment properties

Homeowners with an investment property should pay their strata fees or insurance in advance in order to reduce the amount they can claim next year 

6. Self-education material

Employees can also get money back if they purchased any materials to further their education in their industry. This includes books, magazines and newspapers. 

7. Union fees

Workers can claim back any fees they have paid to be represented by a union.

8. Super contribution

Australians can make a one-off payment to their super from their post-tax savings at the end-of-financial year. 

9. Donate to charity 

Residents can claim back any money they donated to a charity. 

10. Invest under a company name

Investing money under a company structure to save 17 per cent on your investment income.