Net medical expenses tax offset phase out From 1 July 2015, the offset is only available to taxpayers with net expenses for disability aids, attendant care or aged care. Claims for the offset are limited to these types of expenses. The income testing of the offset will remain. The offset will be abolished from 1 July 2019

Exploration Development Incentive closing soon If your clients want to participate in the EDI they should notify the ATO by 30 Sept by completing a Participation form. The EDI is in year 2 of a 3 year scheme. It encourages shareholder investment in small exploration companies undertaking greenfields mineral exploration in Aust. Under the EDI, your company clients can distribute exploration credits to equity shareholders. They do this by converting a portion of their tax losses to create these credits. More than 80 companies participated in the first year of the EDI.

You can claim a deduction for: the cost of buying and cleaning occupation-specific clothing protective clothing clothing that allows the public to easily recognise your occupation - such as the checked trousers a chef wears fire-resistant and sun-protection clothing hi-vis vests non-slip nurse's shoes rubber boots for concreters steel-capped boots, gloves, overalls, and heavy-duty shirts and trousers

In the rush before tax return deadline, don’t waste time claiming these tax deductions. So while the following are not necessarily completely off the agenda as possible claims, but may be allowable in certain circumstances if solid and “reasonably arguable positions” are made in support of them, the following will be knocked back as a matter of course. Off the menu are the following:

Driver’s licence.

Vaccinations.

Grooming costs.

Police clearance and record checks.

Eviction of a tenant. Volunteer work.

The ATO is cracking down on the black economy, targeting businesses that are not declaring cash revenues, from restaurants through to home cleaners, in a bid to bring billions of dollars back into the tax net. The Tax Office has stepped up audits of small businesses including cafes and restaurants, carpentry and electrical services, hair, beauty and nail specialists, building trades, road freight and waste skip operators. Also in the ATO’s sights are cleaners, who are almost always paid in cash for working in clients’ homes.

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