Tax deduction Aussies are missing out on

Half of Australia’s taxpayers are missing out on extra money in their tax returns after neglecting to do one thing.

New research by humanitarian aid not-for-profit CARE Australia has revealed while about 80 per cent of the country is aware donations to charities over $2 can be claimed in their tax-returns, roughly 50 per cent have admitted they’re not donating.

In fact, one in eight said they’ve never donated to a charity in their life.

CARE Australia has urged Aussies to dig deep and donate to global causes, hoping the added benefit of claiming those donations when tax time comes around would encourage more to do so.

Peter Walton, CARE CEO said last financial year, Australians were able to help 1.44 million people across the world who were affected by war or poverty.

“Seeing these statistics really shows how much more we could do if more Australians considered donating at tax time – effectively doubling these results,” Mr Walton said.

The research revealed roughly 50 per cent of the country has plans to donate before June 30, to both make a meaningful impact and “reap the financial benefits.”

Data from the Australian Taxation Office revealed in the 2019–20 financial year, around 4.2 million Australians claimed deductions for $3.7 billion in gifts and donations to charities and not-for-profits

Taxable donations are just one way Australians can see a bigger tax return this year, with lost income, working from home costs and other expenses all factors that could impact the total of your final bill – or refund.

Tax agents say you are unlikely to get the highest return by relying on the pre-filled data from the Australian Taxation Office (ATO).

Though it might be the quickest way, taxpayers should know that the pre-filled information is not always the most reliable, according to H&R Block’s director of tax communications Mark Chapman.

“During July in particular, many taxpayers are shocked to notice plenty of their income information doesn’t show up when they download data from the ATO,” he said.

“This is because many third parties don’t pass on the data they are legally required to provide until well into July and in some cases August.”

For Aussies who spend a fair amount of time working from home, there are also a number of items you’ll be able to claim, these include phone and internet expenses, stationary, printer paper, ink, and even office furniture.

However, the ATO has changed how people can claim their working from home expenses, which may affect how much you can get back.

For expenses incurred from July 1 2022, you’ll be able to claim 67 cents per hour while working from home, an increase from the standard rate of 52 cents per hour.

The tax expert also cautioned people not to inflate their expenses, reminding people that they are only entitled to what they have incurred — if you overdo it, you could get into trouble with the taxman.

“However, if you actually have incurred a work-related expense, and you have the substantiation to prove it, don’t hesitate to claim it,” Mr Chapman said.

If you’ve purchased anything for your work or business in the past 12 months, those items may ensure you get the highest return possible.