HCW Accountancy

10/06/2026

How to handle weird tax deduction claims - this article is great to read.

"One taxpayer wanted to claim food and vet bills for their labrador who was allegedly used as a business security dog. Another attempted to claim an exercise bike used in their home office. Other attempted claims included children’s school fees and stationery costs, golf course and horse racing memberships, and costs associated with airline clubs, passports and immunisations."

Accredited to CPA Australia Public Practice_INPRACTICE STORY.

Some taxpayers have unrealistic expectations when it comes to work-related expenses. Here’s some of the weirdest tax deduction claims. Can AI help?

15/07/2025

Deductions You can claim - Occupation "Gaming Attendant"

1. CAR EXPENSES
~ You can claim the cost of using a car you own when you
drive:
-between separate jobs on the same day – for example, from your morning café shift directly to your second job as a gaming attendant
- to and from an alternate workplace for the same employer on the same day – for example, travelling directly between the gaming lounge you work in and head office for training.

### You generally can’t claim the cost of normal trips between home and work, even if you live a long way from your usual workplace, work outside normal business hours or work split shifts – for example, weekend or early
morning shifts

If you claim car expenses, you can use the logbook method or the cents per kilometer method to calculate your deduction.

2. CLOTHING EXPENSES
~ You can claim the cost of buying, hiring, repairing or cleaning clothing if it is considered:

-a compulsory uniform – you must be explicitly required to wear it by a workplace agreement or policy, which is strictly and consistently enforced and is sufficiently distinctive to your organization.

-non‑compulsory uniforms that are registered with Aus Industry (check with your employer if you’re not sure).

### You can’t claim the cost of buying, hiring, repairing or
cleaning conventional clothing you bought to wear for work. ‘Conventional clothing’ is everyday clothing worn by people – for example, black pants, skirts, white collared shirts and plain black shoes.

### You can’t claim a deduction if your employer pays for or reimburses you for these expenses.

3. MEAL EXPENSES

~ If you receive an overtime meal allowance under an industrial law, award or agreement and it’s included in your assessable income, you can claim the cost of the meal that you buy and eat when you work overtime.

### You can’t claim a deduction for the cost of food, drink or
snacks you consume during your normal working hours, even if you receive a meal allowance. These are private expenses.

4. SELF EDUCATION EXPENSES
~ the additional costs to renew a special license, condition
on your license or certificate in order to perform your work
duties. For example, if you need to have a gaming license
to get your job, you can’t claim the initial cost of obtaining
it, however, you can claim the cost of renewing it during the
period you are working.

### You can’t claim the initial cost of getting a special license,
condition on your license or certificate in order to gain employment ‑ for example, a gaming license.

5. OTHER COMMON DEDUCTIBLE WORK-RELATED EXPENSES
~You can claim the work‑related portion of other expenses if it relates to your employment, including:

- phone and internet costs, with records showing your work‑related usage

- expenses you incur working from home that are not incidental (for example, you can’t claim the cost of checking your roster or payslip)

- logbooks, diaries and pens that you use for work

- union and professional association fees

- seminars, conferences and courses that directly relate to your
work.

You can only claim the work‑related part of expenses. You can’t claim a deduction for any part of the expense that relates to personal use.
- You must have a record to prove it
- You must have spent the money yourself and weren’t reimbursed
- It must be directly related to earning your income

Contact us to arrange an appointment to get your tax return 2025 done.

Source of information: ATO Website & ITP

15/07/2025

Deductions you can claim - for occupation "Real Estate Professional"

1. CAR EXPENSES
~You can claim a deduction when you are:
• Driving between separate workplaces – eg a second job
• Driving to and from an alternate workplace for the same
employer (eg travelling between two different residential
open homes).

### You can’t claim the cost of trips between home and work,
even if you live a long way from your usual workplace or
have to work outside normal business hours – eg to attend
a weekend auction.
There are limited circumstances where you can claim the
cost of trips between home and work, such as where you
carry bulky tools or equipment for work – eg a large ‘for
sale’ sign and tools to erect it. The cost of these trips is
deductible only if:
• Your employer requires you to transport the equipment
for work
• The equipment was essential to earning your income
• There was no secure area to store the equipment at the
work location, and
• The equipment is bulky – at least 20kg or cumbersome to
transport.
If you claim car expenses, you need to keep a logbook
to determine the work-related percentage, or be able to
demonstrate to the ATO a reasonable calculation if you use
the cents per kilometer method to claim.

2. TRAVEL EXPENSES
~ You can claim a deduction for travel expenses if you
have to travel overnight from your usual work location – eg
traveling to a remote area to inspect a property – provided
the cost was incurred while carrying out your work duties.
Travel expenses may include meals and accommodation,
fares, petrol and incidentals such as parking fees and tolls.

### You can’t claim receiving a travel allowance from
your employer does not automatically entitle you to a
deduction. You still need to show that you were away
overnight, you spent the money yourself, and the travel
was directly related to earning your income – eg it was not
a personal expense.

3. HOME OFFICE, PHONE AND INTERNET EXPENSES
~You can claim a percentage of the running costs of your
home office if you have to work from home, including
depreciation of office equipment, work-related phone calls
and internet access charges, and electricity for heating,
cooling and lighting costs.

### You can’t claim the cost of rates, mortgage interest, rent
and insurance.

4. CLOTHING AND LAUNDRY EXPENSES
~ You can claim a deduction for the cost of buying, hiring,
mending or cleaning certain uniforms that are unique and
distinctive to your job eg clothing items you’re required to
wear which has a logo that is unique and distinctive to
your employer.

### You can’t claim a deduction for the cost of:
• Buying or cleaning plain clothing worn at work, even if your
employer tells you to wear it and even if you only wear it
for work, eg black pants and a white shirt.
• For hairdressing, cosmetics, hair and skin care products,
even if your employer tells you to use them, or you are
required to be well-groomed.

5. OTHER COMMON DEDUCTIBLE WORK‑RELATED EXPENSES
Other expenses you can claim include:
• Marketing equipment – eg the work-related portion of cameras used for property photos
• Decorating properties – eg flowers
• Union and professional association fees
• Renewing your annual Certificate of Registration
• Technical or professional publications.

You can only claim the work-related part of expenses. You can’t claim a deduction for any part of the expense that relates to personal use.
~You must have a record to prove it
~You must have spent the money yourself and weren’t reimbursed
~It must be directly related to earning your income.

Contact us to organise a time if you need your 2025 tax return done.

Source information: ATO, & ITP

11/07/2025

Changes in 2025 tax time!!!

Changes in tax rates and work- related expenses allowances, for example: from 1st July 2024, the fixed rate method to claim additional running expenses from the working from home rate was increased from 67 cents to 70 cents per hour. The proposed an automatic deduction of $ 1000 without the need for receipts is yet passed by Parliament.

Instant asset write-offs for small business (sole trader, or company and trust running businesses) with an aggregated turnover of less than $ 10 Million can claim an immediate deduction for the full cost of eligible assets costing less than $ 20,000 per eligible asset under the instant asset write-off program. To be eligible, assets must be purchased and installed ready for use between 1 July 2024 and 30 June 2025. Both new and second-hand assets qualify including machinery, tools, office equipment (computer etc), plant equipment and motor vehicles.

Keep an eye on Crypto record keeping as an investment, Division 7A and Trust Distributions. Read the below link for article from CPA Australia.

Tax time 2025 is about change. Alternations to tax rates and work-related expenses allowances are part of the year end mix. So is crypto. Here’s what else to look out for.

08/07/2025

Welcome to New Financial Year 2025- Self- Managed Superannuation Fund(SMSF) Financial Statements & Tax Lodgement or SMSF Audits.

It has been a great pleasure working with you last financial year. I would like to continue offering SMSF services in preparing financial statements & tax return 2025 and upcoming years.

The DUE DATE for SMSF Tax lodgement for 2025 is 15th May 2026.

About Myself
I am a qualified accountant with CPA and a fellowship of CPA, registered tax agent, and an ASIC registered SMSF auditor in auditing other accounting firm's SMSF. With 20 years + experience in tax & accounting, it's my pleasure working together with you and for you. If you do have any SMSF queries or uncertainty, please reach out for advice. I can be contacted via email or phone.

Important Updates for the New Financial Year
As we start a new financial year, I want to communicate important updates to SMSF audit procedures and audit documentation. The ATO's focus on market valuations will continue in the new financial year, particularly with the proposed Division 296 tax on 5th June 2025 which would apply to both realised and unrealised gains starting from FY 2025/2026- Division 296 tax applies to superannuation closing balance threshold at $3 million per individual member as at 30/06/2026.

Property Title Searches – New Annual Requirement
From July 2025 ATO will be requesting a property title search every year to confirm the ownership of property. For each audit year, the title search will need to be obtained after the audit year end (e.g. for the 2025 audits, the title search needs to be dated post 1st July 2025).

Title search can be obtained from this link https://landservices.com.au/publications-and-reports/get-a-copy-of-your-certificate-of-title

LRBA Offset Accounts
The ATO have released guidance on offset accounts for ADI and non-ADI lenders.

The ATO have stated "A deposit facility offered by an Authorised Deposit-taking Institution (ADI) that is an offset account notionally reduces the loan balance of a mortgage, resulting in a reduction of interest calculated against the loan. Genuine offset accounts offered by an ADI are allowed as it's not considered a borrowing or charge over the fund's assets. Offset accounts offered by non-ADI lenders are not considered bank deposits. Therefore, due diligence should be taken when considering this type of arrangement".

If a fund has a LRBA with an offset account provided by a non-ADI lender, the SMSF auditor will be reviewing the loan agreements to ensure there is no charge over the fund's assets relating to the offset.

Asset Valuations
For residential property, obtaining a Corelogic or Desktop Valuation on an annual basis can be done quickly and at a low cost.

For Commercial property and farming land, if an independent property valuation has been obtained for an audit year, the below alternate methods can be applied for the next two years after the independent value.
*Annual growth rate
*Net capitalisation (based on the current rent and the yield in the prior independent valuation)
*Updated comparable sales - it can be obtained from the real estate agent with at least 3 comparable sales near by the areas.
*After the two-year period, an updated independent valuation will be required again for the commercial property and farming land.

The annual valuation requirement applies to all assets including the following non-standard assets:-
*Unlisted unit trusts
*Unlisted companies
*Precious metals
*Loans
*Cryptocurrency
*Collectable and personal use assets (e.g. Motor Vehicles, artwork, Jewellery, etc)
*Pink Diamonds
*Other non-standard assets
For unlisted unit trusts and companies, clients are reminded that when providing a share price for new equity raised or shares sold, it needs to include the date the equity was raised or shares sold, and it must be within 12 months of year end. Additionally, an email from a company CFO must also have these details.

Thank you for your continued support. I look forward to working with you over the next financial year and upcoming years.

If you have any queries, please do not hesitate to contact me on 0406 989 780.

Liability limited by a scheme approved under Professional Standard Legislation

Source of information: reference from ATO, SMSF Association, Online SMSF Audits, and ASF Audits.

Get a copy of your Ttitle through SAILIS. You may need a copy of your certificate for various reasons including lodging development applications or applying for council approval for a pergola or extension.

08/07/2025

2024-2025 financial year begins; tax changes will impact individuals, small businesses, and superannuation funds across Australia. Are you an employee, or sole trader, or employer, you should understand these updates is essential for compliance and tax efficiency.

Medicare Levy Low-Income Threshold Adjustments
- To Support low-income earners, the government has increased the Medicare Levy Low-Income Thresholds for the 2024-25 income year:
* Singles: Increased from $ 26,000 (2023-2024) to $ 27,222
* Couples with no children: Increased from $ 43,846 (2023-24) to $ 45,907
* Additional amount per dependent child or student: Increased from $ 4,027 (2023-24) to $ 4,216

For single seniors and pensioner eligible for the Seniors and Pensioners Tax Office (SAPTO):
* Individual Threshold: Increased from $ 41,089 (2023-24) to $ 43,020
* Family Threshold: Increased from $ 57,198 (2023-24) to $ 59,886
* Additional per dependent child or student: $4,216

Changes to the Instant Asset Write-Off for Small Businesses
Small business with an aggregated turnover of less than $10 million can continue to take advantage of the $ 20,000 instant asset write-off for eligible depreciating assets first used or installed by 30 June 2025.

Key points:
* The Threshold applies per asset.
* Assets must be installed and ready for use by 30 June 2025.
* Assets costing $20,000 or more can still be depreciated via the simplified depreciation pool.

Superannuation Guarantee Rates Rises to 12%
From 1 July 2025, employers must increase the Superannuation Guarantee (SG) rate to 12% of ordinary time earnings.

Resident Tax Rates for the 2024/25 Tax Year

22/03/2024

The income Thresholds used to calculate the Medicare levy surcharge and Private Health Insurance (PHI) rebate will increase from 1st July 2024.

The 2025 Thresholds are outlined in the table below.

Note: The family income threshold is increased by $1,500 for each Medicare Levy Surcharge dependent child after the first child.

Source of information: National Tax and Accountants Association (NTAA)

10/03/2024

We all works very hard in funding our retirement, so looking after your super is crucial. Take sometime to have your super health check yourself using the step-by- step provided here by ATO.

https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/keeping-track-of-your-super/super-health-check

Source of information : ATO website

10/03/2024

Following the release of the latest Average Weekly Ordinary Time Earnings (AWOTE) index, the increase of the concessional contribution caps from 1 July 2024 has been confirmed, the Concessional contribution cap will increase from $27,500 to $30,000. The Non-concessional contribution cap, which is expressed as 4 times the standard concessional contribution cap, will increase from $110,000 to $120,000. The maximum Non-concessional cap available, under the Non-concessional contribution bring-forward provisions, will increase from $330,000 to $360,000. The Total Superannuation Balance Thresholds, used to determine the maximum amount of bring-forward Non-concessional contributions available to an individual, will also be adjusted.

Source of information: SMSF Association