What can I
claim on Tax?
What is EOFY?
EOFY = End of Financial Year. And in the leadup to June 30, businesses Australia-wide scramble to finalise their books for assessing business performance, and to identify opportunities to upgrade assets, for either modernising or bolstering capabilities and productivity.
So, during EOFY, what can I claim on tax? Officeworks offers you this guide to help you decide where to allocate your business upgrade dollars, to maximise your tax return from the ATO (government).
A Guide to Help Get You More Value at EOFY
If your head’s still spinning in the wake of what was a tumultuous financial year, you’re not alone.
Preparing for tax time after 2020 was always going to be a challenge. It may not have been business-as-usual but reading through this article might help you get back in the right mindset.
If you’re one of the many individuals left taking stock of what they’ve spent on their work during the year, or someone looking to finalise their spending before tax time, this article is for you. While this is a conversation to open with your accountant and can’t be substituted for financial advice, gazing through this article will prompt a few ideas for you come tax time.
What can I claim in tech upgrades?
Did you update your tech setup in the last financial year, or are you hoping to do so? Are adapting and enhancing your existing setup so you can work from home on a more permanent basis? Staying connected requires plenty of devices working together.
Many people needed to purchase additional signal boosters or new routers to enhance their existing internet connections. Some people needed to invest in high-quality web cameras and microphones to make video calls as seamless as possible. Even mobile devices like smartphones and tablets became essential to work communication sometimes, so don’t forget those.
And of course, there are the subscriptions to software suites to help you work more flexibly – some teams needed new ways to communicate over greater distances than the office meeting table.
As working from home put us all to the test, inevitably it did the same to our devices. So, if the 2019/2020 financial year was the year of retirement for some of your devices, don’t forget to check if you can claim their replacements.
What can I claim for work-from-home?
As we scrambled to adapt to a work-from-home lifestyle, plenty of us found ourselves in a sea of cardboard boxes and Allen keys. Eventually, most of us tired (or are tiring) of working from the couch or kitchen table and ended up establishing new workstations within the home. When you’re considering what you can claim, remember that your workstation was more than just a desk. It’s also monitors, keyboards, mice, even filing cabinets and desk chairs.
And don’t forget those less memorable accessories like monitor risers, monitor arms, mouse pads, or even new powerboards to connect all your new devices. Things that you might have taken for granted in the office, like printers, photocopiers, and scanners, were also items plenty of people added to their home setups.
Even if you had an existing printer, using it for work purposes might result in a few extra cartridges being added to your cart; perhaps also a few extra reams of paper. These are all items to bring up when you open the discussion with your accountant.
Can I claim my printing and signage?
It wasn’t just home offices that found new printing expenses in the last financial year.
Plenty of small businesses and offices found themselves with a bit of extra printing on their hands, too. Covid-related signage, QR code posters, floor decals to enforce social distancing and hygiene protocols are all items that likely required professional printing services – and they’re all items that you may be able to claim on tax this financial year.
As improved and clear signage was imperative, some spaces even opted for digital signage, representing another significant investment. If you invested or are investing in those, and you used a subscription-based model for the software to program them, you might also be able to claim those fees. Don’t forget to discuss those when you’re meeting with your accountant, as these costs can really add up!
Are hygiene supplies tax deductible?
If you work in an office or shared space, retail outlet, café or restaurant, you most likely know that keeping up with hygiene procedures is standard practice. But over the past year, hygiene has been pushed right to the front of everyone’s minds. Now, extra precautions are the new normal, and that comes at an expense.
While you still have your standard purchases, like paper towels, spray and wipe, handwashing and dishwashing supplies, some extras are now essential. To protect customers and staff, many businesses made or are making significant investments.
Did you install a hand sanitiser dispenser at the front of your premises? What about acrylic sneeze guards at your point of sale? What about masks for staff? Plenty of businesses also invested in digital thermometers, to screen both staff and patrons before entry. You might even find that your ordinary spend on paper towels, cleaning wipes, and even cleaning staff increased. Both individuals who were required to purchase their own hygiene and protective equipment, and businesses who purchased those supplies for their staff, can potentially claim those items on tax.
Going forward, these items are likely going to be a regular part of your operating costs, so now might be the time to stock up. Whether you’re an individual or a business owner, you can bring these records to the table when you’re discussing tax deductions with your accountant.
A final word..
While none of the information provided here is a substitute for a conversation with your accountant, hopefully, it has jogged your memory! But also, ensure you do take a moment to reflect on the financial year that was – with all its challenges and changes. At Officeworks, we’re here to support you into the new financial year, with office, hygiene, and technology supplies to make your FY21/22 the best year yet.