Latest news with #TaxRefund
The Australian
3 days ago
- Business
- The Australian
Tax refund time: Top 10 common deductions people forget to claim
Tax refund season is peaking for millions of Australians but many are missing out on money because they forget common deductions. New figures from the Australian Taxation Office show that as of July 31, more than four million people had lodged their 2024-25 tax return – still a small proportion of the 14 million-plus people who lodge annually. 'More than 2.6 million individual refunds have been issued, totalling more than $6.6bn, with an average refund of $2548,' an ATO spokeswoman said. Tax specialists say the peak period for tax returns is between mid-July and September, and note that some deductions are commonly forgotten – particularly among people who prepare their own return. While more than 2.5 million self-preparers already have lodged, it's possible to amend previously-filed tax returns. Chartered accountant and Mr Taxman founder Adrian Raftery said this could be done through the ATO website or a tax agent. Here are 10 deductions that experts say are commonly forgotten at tax time. 1. Income protection insurance Unlike other life insurance products, premiums for income protection insurance are tax-deductible if the policy is held outside of superannuation. Dr Raftery said income protection cover could cost thousands of dollars a year. 'It's an automatic debit that comes out of their bank account, and it's a different item in the tax return so it's not front and centre of their work-related expenses,' he said. 2. Home office items Anti-virus software, Microsoft 365 subscriptions, computer accessories, USB sticks, stationery and other one-off or annual expenses could easily be missed, Dr Raftery said. He said poor record-keeping was an issue. 'People forget about things they spent money on in July and August last year.' 3. Working from home The ATO allows people to claim a deduction based on hours worked from home, called the fixed-rate method, which is 70c per hour and includes phone usage, internet, electricity and gas, stationery and computer consumables However, each hour worked must recorded in a diary. H&R Block director of tax communications Mark Chapman said while working from home was a common deduction, 'people forget to keep the substantiation, which means that they can't claim it'. 4. Handbags Mr Chapman said handbags were an occupation-specific deduction that was often missed. 'Many people don't realise you can claim a handbag on your tax return if it's used for work to carry a laptop or papers,' he said. 'And sunscreen if you work outside – it's claimable if you do work outside, but people often haven't kept the receipt.' 5. Uniforms 'If you have got tax-deductible, work-related clothing you can also claim the cost of laundry or dry cleaning,' Mr Chapman said. 'Dry cleaning is often an expensive process.' The ATO says you cannot claim for everyday clothing such as suits or casual clothes, but can claim for occupation-specific uniforms, protective clothing and compulsory work uniforms with logos. 6. Receipts This may be the most important forgotten element, because record-keeping is a must. 'If you haven't got the receipt, that's pretty fatal for most deductions,' Mr Chapman said. 7. Superannuation 'People pay into super with the intention of claiming a tax deduction, but what they often forget to do is all the paperwork that surrounds it,' Mr Chapman said. 'You have to send your super fund a notice of intent to claim a tax deduction form and the super fund must reply. 'We get a lot of people who had put money into super but did it too late, or don't have the paperwork to back up the superannuation contribution. Some people misunderstand the rules and try to pay in July, August or September.' 8. Donations 'Charitable donations is a common one – people often don't think to claim them,' Mr Chapman said. 'You can claim a deduction if you have donated in excess of $2 to a charity which is a deductible gift recipient, which most charities are.' 9. Financial advice Dr Raftery said the tax-deductible portion of financial advice fees was a new measure introduced in 2024-25 and could be missed. 'Some of that may extend from financial planners not knowing about it,' he said. 10. Investment expenses Interest paid on margins loans for shares and investment property mortgages was an area Dr Raftery often reminded clients to claim. Land tax and landlord insurance were other expenses commonly forgotten by property investors, he said. Dr Raftery said another big miss was depreciation, as people either ignored it or did not understand the rules, where depreciation could not be claimed for fixtures and fittings in second-hand property purchases but still applied to new properties, while capital works deductions remained for all properties – typically 2.5 per cent a year of construction costs. 'Probably half of new property buyers now do get a depreciation schedule but the other half don't – that can be a $15,000 tax deduction over the year.' Making amendments Dr Raftery said people could change a tax return up to two years after it was assessed. However, this could be a potential red flag to the ATO, he warned. 'Just be doubly certain that you have excellent record keeping with your receipts and logbooks.' Read related topics: TaxWealth Anthony Keane Personal finance writer Anthony Keane writes about personal finance for News Corp Australia mastheads, focusing on investment, superannuation, retirement, debt, saving and consumer advice. He has been a personal finance and business writer or editor for more than 20 years, and also received a Graduate Diploma in Financial Planning. Personal Finance Hiding assets during a divorce is nothing new, but cryptocurrency has added a modern twist on an old theme. Personal Finance Not everyone rejoices when the Reserve Bank cuts official interest rates, but there are ways to safeguard decent returns from cash in the bank.
Yahoo
24-04-2025
- Business
- Yahoo
Hunan Pioneers "Instant Tax Refund" Policy - Over 30 Brands Launch Pilot at Changsha IFS
New York, New York--(Newsfile Corp. - April 23, 2025) - Effective immediately, Hunan Province has officially launched its first-ever pilot program for an "Instant Tax Refund" service at Changsha IFS, offering eligible overseas visitors (including foreign tourists and residents from Hong Kong, Macao and Taiwan of China) a seamless tax refund experience when shopping at designated stores. This initiative represents a significant upgrade to the traditional departure tax refund policy, providing travelers with a faster, more convenient, and diversified tax refund option. Unlike the conventional procedures, the "Instant Tax Refund" allows tourists to receive their refunds directly at the shopping mall, enhancing the seamless experience of cross-border consumption. Image 1To view an enhanced version of this graphic, please visit: Instant Tax Refund - 9% Tax Rebate Paid On-Site As the first batch of pilot shopping malls in Hunan, Changsha IFS has set up a temporary "Instant Tax Refund Service Center" at the L2 VIP Lounge. Eligible overseas visitors can present their passports (for foreign tourists) or valid personal identification (for residents from Hong Kong, Macao and Taiwan of China), along with VAT invoices, the "Tax Refund Application Form" and credit card with pre-authorization privileges to complete the refund process. The tax refund, equivalent to 9% of the purchase amount, is paid immediately in CNY cash. After receiving the refund, tourists can continue shopping, stimulating a deeper cycle of cross-border consumption. Image 2To view an enhanced version of this graphic, please visit: Image 3To view an enhanced version of this graphic, please visit: Diverse Brand Mix Catering to All Consumer Needs The first batch of instant tax refund stores at Changsha IFS features diverse retail formats, including Luxury, A-luxury, Jewelry and Watches, Cosmetics, Sports, and Lifestyle. With over 30 brands such as alexanderwang、BURBERRY、BVLGARI、Cartier、COACH、DIOR、Fila、O.C.E.、PARKSON BEAUTY、ROLEX&TUDOR and UNDER ARMOUR, it fully meets the varied consumer needs of overseas tourists. Image 4To view an enhanced version of this graphic, please visit: Image 5To view an enhanced version of this graphic, please visit: Image 6To view an enhanced version of this graphic, please visit: Image 7To view an enhanced version of this graphic, please visit: Changsha IFS: A Landmark Driving Changsha's International Consumer Center Ambition As a premier commercial landmark in Central China, Changsha IFS embodies an international and diversified retail experience that fuels urban development. With over 380 brands across Luxury, Jewelry and Watches, and Trendy Fashion, it serves as a key showcase of Changsha's global commercial profile. Featuring 150 debut stores in Hunan and over 20 double-layer flagship stores offering international men's and women's apparel, it injects fresh vitality into the city's consumption landscape. In line with the national strategy to accelerate new development models and upgrade consumption, Changsha is actively embracing innovation to integrate into the framework of building international consumption center cities. The launch of the "Instant Tax Refund" pilot at Changsha IFS not only enhances the shopping convenience and friendliness for overseas tourists but also marks a milestone in positioning Changsha as a world-class international consumption hub. Image 8To view an enhanced version of this graphic, please visit: Fay Tangpmd@ To view the source version of this press release, please visit Sign in to access your portfolio
