Do you ever feel like tax time comes around too quickly, and suddenly you’re scrambling to get your documents in order? Most Australians do. But what if the very money you’re spending to manage your tax affairs could actually save you money when it comes time to lodge your return?
You might be thinking, “Wait, isn’t that just obvious?” But here’s the catch: many people are still leaving money on the table because they either don’t know what’s deductible or they assume their accountant has already claimed it.
What Can You Actually Claim?
The Australian Taxation Office (ATO) allows you to claim a deduction for expenses related to managing your own tax affairs. That’s more than just the cost of hiring a tax agent. Think about it: if you paid for tax reference materials, courses, software, travel to meet your accountant, or even sought professional advice, a portion of these costs could be deductible.
Here’s what counts:
- Fees paid to lodge your tax return through a registered tax agent.
- Cost of buying tax reference materials or attending tax preparation courses.
- Travel expenses to get advice from a recognised tax adviser.
- Fees for financial advice directly related to managing your tax affairs.
- Legal or litigation costs, including solicitor or barrister fees if connected to your tax obligations.
- Software for preparing and lodging tax returns, though only the portion used for tax purposes can be claimed.
Even things that seem minor, like certain card fees when paying tax obligations, can be claimed, as long as they fall under the rules.
What You Can’t Claim
It’s just as important to know what doesn’t qualify:
- Using unregistered advisors or providers. Only registered tax agents or qualified ASIC-registered providers count.
- General financial advice unrelated to tax management. For instance, information about a new investment isn’t deductible if it doesn’t involve tax implications.
- Personal tax debts or interest on loans you take to pay them.
Also, if you receive a single invoice that covers multiple people, such as a joint tax return, you need to split the fees fairly. And, of course, keeping records to show how you calculated your deductions is mandatory. Without them, the ATO could deny your claim.
Why This Matters
Let’s break it down with a scenario:
Sarah pays $500 to a registered tax agent to prepare her tax return. She also spent $200 on a course to understand tax deductions better and $50 on travel to meet her accountant. That’s a total of $750 she could claim.
If she’s in the 30% tax bracket, claiming that $750 as a deduction would reduce her taxable income (not her total tax bill) by that amount. The practical effect? She’d pay about $225 less in taxes than if she hadn’t claimed those expenses.
Now think about all the Australians who pay similar amounts every year but don’t claim it. Multiply that by thousands of taxpayers, and it’s a huge amount of money left unclaimed.
Avoid the Common Mistakes
Even when you know these deductions exist, mistakes can cost you:
- Failing to keep records – Receipts, invoices, or proof of payment are essential. No record, no claim.
- Assuming your accountant will do it automatically – Not every agent checks every line. Always confirm your deductions are included.
- Mixing personal and business costs – Only claim expenses directly related to managing tax affairs. Splitting invoices properly is critical.
The simplest way to track everything is to use tools like the ATO’s myDeductions. You can log receipts, track travel for tax purposes, and even attach documents throughout the year. When tax time rolls around, you’ll have everything ready.
Take Action Now
The cost of managing your tax affairs isn’t just an expense. It’s a deduction waiting to be claimed. If you’ve been paying for help and not claiming it, you’re leaving money on the table. Start keeping receipts, split invoices if necessary, and make sure you’re claiming everything the ATO allows.
Even small amounts add up. Over the years, properly claiming deductions for managing your tax affairs can put hundreds, if not thousands, back in your pocket.
So before you file your next return, ask yourself: Am I claiming everything I’m entitled to? If the answer isn’t a confident yes, it’s time to take action. Don’t let simple oversights cost you money.
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