Tax Tips: Individuals 2023

Updated June 9th 2023

Are you ready for tax time?

The Australian Taxation Office (ATO) automatically receives information from your employers about salary and wages that you have been paid for the financial year.

You need to declare all income, (even if it’s just a small amount), from other sources on your tax return as well. You’ll also need documents such as statements, invoices and reports to show all earnings.

  • Wages, salaries, allowances or bonuses from all employers.
  • Pensions, annuities or other government payments.
  • Investment income including interest earned and dividends received.
  • Business and hobby income, if you have a side-business as well as a job.
  • Foreign income.
  • Crowdfunding income.
  • Sharing economy income such as Uber or Airbnb.
  • Income from overseas sources.
  • Income such as hobbies, prize money, compensation or insurance payments may be tax free but check with us.

Work-Related Expenses

Employees are entitled to claim work-related expenses as a tax deduction. To claim a deduction, you must have spent the money out of your own funds and not have been reimbursed by your employer. The expenses must relate to your earnings as an employee. Make sure you have invoices and receipts as proof of payment for any work-related expenses.

Expenses you may be able to claim

  • Vehicle and travel expenses – use a travel diary to record details of trips taken for your employment.
  • Clothing, laundry and dry-cleaning expenses – you can claim for occupation specific clothing, uniforms and protective gear.
  • Self-education expenses – some education expenses that relate to your current employment are claimable.
  • Tools and equipment – if you buy gear to help you in your job, this may be claimable. Small tools of trade, protective items, professional references and laptops are some examples of equipment you may be able to claim.
  • Superannuation contributions you have made separate to your employer’s contributions.
  • Occupation and industry specific requirements – check the ATO fact sheets for your industry.
  • Working from home – new rules apply this year that make claiming expenses for working from home easier. Check the ATO information for details.

Additional tips include;

  • Organise your records: Gather all your financial records, including receipts, invoices, and bank statements, to ensure you have the necessary documentation for claiming deductions or rebates.
  • Claim eligible deductions: Identify and claim all eligible deductions to minimise your taxable income. Some common deductions for individuals include work-related expenses, self-education expenses, charitable donations, and investment expenses.
  • Prepay expenses: Consider prepaying some deductible expenses before the end of the financial year. For example, if you have upcoming work-related expenses, such as professional subscriptions or self-education, you may be able to claim them in the current financial year by paying in advance.
  • Superannuation contributions: Maximise your superannuation contributions up to the concessional and non-concessional limits. Concessional contributions (before-tax contributions) are taxed at a lower rate, while non-concessional contributions (after-tax contributions) don’t attract additional tax. Be mindful of the contribution caps and seek advice if necessary.
  • Review your investments: Review your investment portfolio and consider the potential tax implications. Capital gains or losses from the sale of investments may impact your tax liability. If you have incurred capital losses, you might consider offsetting them against capital gains to reduce your overall tax liability.
  • Health insurance: If you earn above a certain income threshold and do not have private health insurance, you may be liable for the Medicare Levy Surcharge. Consider taking out private health insurance to avoid this surcharge, if applicable to your circumstances.
  • Donations: If you have made charitable donations throughout the year, ensure you have the necessary receipts to claim a deduction. Donations of $2 or more to registered charities are generally tax-deductible.
  • Consider seeking professional advice: If your financial situation is complex or you’re unsure about certain deductions or strategies, it can be beneficial to consult with a qualified tax professional or accountant. They can provide tailored advice based on your individual circumstances.

Further information specific to your situation, can be found on the ATO website including;

You can also visit the ATO’s “What’s new this year? 2023” page for a list of new initiatives incorporated in this year’s Individual tax return instructions.

It’s important to note that these tips are general in nature, and it’s best to consult with a qualified professional or refer to the official Australian Taxation Office (ATO) website for specific advice related to your situation.

Alternatively, schedule time with us now for assistance in ensuring you maximise your allowable tax deductions this financial year.

We’ve got you covered this tax season –