Disclaimer:The content provided is not intended to be tax advice. It does not take into account your objectives, financial situation or needs. Origin recommends you seek your own independent tax advice prior to lodging your tax return.

What can be considered as a tax deduction?

Simply put, tax deductions are permissible reductions in your taxable income, that are recognised by Australian tax law. Tax-paying individuals and businesses can claim certain expenses or contributions related to their work. These deductions reduce the amount of income you’ll be taxed on — effectively decreasing the overall tax liability, providing financial relief and greater tax savings.

There are many deductions you can claim against work-related expenses that people often forget about when completing their tax return. Certain travel expenses, home office expenses, education and even internet and mobile phone expenses may be tax deductible. Remember, it’s worth speaking with a tax professional to confirm which apply to you (this will help ensure you’re compliant and the cost of tax advice is deductible, too!). 

Financial expenses

Accounting fees

Did you use a tax agent to prepare and lodge your tax return last year? If you did, then you can claim the amount you paid last year – on this year’s return. On your tax return, simply put the amount you paid in 2023 into section D10 – “Cost of Managing Tax Affairs”. The fees you pay for tax return help are always tax deductible. 

Donations

If you’ve been generous over the past financial year, it’s an added perk that your donation may extend beyond a good cause to a tax break. Donations of $2 or more to organisations that have the status of a deductible gift recipient  are tax deductible if you have a receipt. 

Income protection insurance

You’re entitled to claim tax deductions for insurance premiums paid against the loss of income. Remember though, this doesn’t include life insurance, trauma insurance or critical care insurance.

Investment losses and bad debts 

Many people think they are a share trader rather than an investor, make sure you know the difference to ensure you lodge your tax correctly this year.

It’s important for investors to include any capital losses not used to offset current year capital gains on their tax return in the year they occur. By including capital losses on a tax return, they’re available to use in future years and can prevent you being contacted by the ATO when the loss is used in future years. Remember, investors can’t use capital losses to offset income like wages. Business owners also need to prove they have made a genuine attempt to recover any bad debts that may have arisen. Your financial advisor can explain how to document the debt as evidence the amounts were written off before the end of the financial year. 

Prepaid expenses

With tax deductions, every little bit counts. Prepaying your expenses (such as with PAYGI) can attract a tax deduction that is commonly overlooked. 

Small business owners and rental property owners can prepay expenses such as subscriptions, business travel expenses, training events, leases, rent, phone, internet, insurance and business asset repairs (note these can’t exceed more than one year and the expenditure must be over $1000). 

Rental property expenses

One of the most common mistakes when owning a rental property is not understanding what can be claimed and when, in particular repairs and capital expenses. Repairs can generally be claimed immediately, but any improvements and capital expenses must be claimed over time.

Any work done before earning any income from the property is considered to be part of the acquisition cost and can’t be claimed unless it’s capital works or a depreciating asset, which gets claimed over a number of years. Acquisition costs can be used to reduce any capital gains when the property is sold.

If you’re not sure download the Investors toolkit and check with your registered tax agent.

Union fees

If you pay to be a part of your workplace’s or industry’s union each year, you’re entitled to a tax deduction under D5-Other work related expenses. 

Assets and inventory

Review your asset acquisition

Running a small business? Did you purchase new or second-hand assets for your business recently? If you have depreciating assets, it’s worth finding out whether you’re eligible for small business concessions, such as simplified depreciation rules, the small business income tax offset or immediate deductions for prepaid expenses. Take advantage of these concessions and/or instant asset write-offs to see if they can help reduce your tax bill (some may also save you time).

Take stock of your inventory

If your business produces or purchases stock for sale, you’ll likely need to do at least one stocktake at the end of the financial year for tax purposes. It’s important to identify any damaged or obsolete stock and write it down or write it off. This exercise will impact the value of the trading stock and your profit margins. 

You’ll also need to consider how to value your trading stock every financial year, as you may be entitled to claim a tax deduction when the opening stock exceeds the closing stock. 

Work related and operational expenses

Home office expenses

With many of us working from home, we’ve put together a quick guide to deductions for home office expenses.

The way you claim (and the amount you claim) for your home office expenses will depend on the method you use to calculate a working-from-home deduction. If you’re eligible to claim a working-from-home deduction, there are two ways you can do this: the fixed rate method or the actual cost method.  

Fixed rate method

The fixed rate method allows you to claim 67 cents for every hour you work from home and covers additional running expenses that are often difficult to apportion, such as your phone and internet usage, electricity and gas, stationery, and computer consumables (like printer ink). You can’t claim these items separately if you use the fixed rate method, but your deduction can include working-from-home expenses, which the rate doesn’t cover, such as decline in value of depreciating assets used for working from home.  

Actual cost method

Using the actual cost method, you work out your deduction by calculating the actual additional expenses you incur when working from home, such as your phone, data and internet expenses. Where you incur running expenses for both private and work purposes, you need to apportion your deduction. You can only claim the work-related portion as a deduction. Whichever method you use, you’ll need to make sure you have the right records, or your deduction may be disallowed. 

Sole traders and partnerships

If you’re a sole trader or in a partnership, you may be able to claim the business-use portion of running expenses (the additional costs of using your home for your business activities) and occupancy expenses (what you pay to own or rent your home). If you operate your business from your home and have a dedicated area set aside as a ‘place of business’, you may be able to claim occupancy and running expenses. These can include mortgage interest or rent, electricity and phone use. Find out more at: www.ato.gov.au/homebasedbusiness However, you may not get the full main residence exemption if your home is your principal place of business — for more information visit the ATO website. 

If you’re an Origin customer, you can download your energy bills using Origin’s MyAccount. Check out our tax time help and support page to learn how. 

Mobile phone expenses

As a business owner or an employee, you can claim the cost of your work-related calls (not your entire phone bill). It’s a good idea to keep a logbook of when you use your personal phone, to determine the average percentage of your calls that are work-related. If you have claimed working from home expenses, you cannot claim the same phone expenses twice.

Education and training expenses

You can claim self-education expenses if there’s a direct connection between the course and your role in your business, or your duties as an employee. You could be entitled to a tax deduction for expenses including the following: 

• Textbooks, professional and trade journals 
• Stationery 
• Photocopying 
• Computer expenses 
• Student union fees 
• Student services and amenities fees 
• Accommodation and meals, only when participating in your course requires you be away from home for one or more nights.
• Running expenses if you have a room set aside for self-education purposes – such as the cost of heating, cooling and lighting that room while you are studying in it. 

Also, if you’re a small business with an aggregated turnover of less than $50 million, you may be eligible for the small business skills and training boost. The boost would give you an additional 20% bonus tax deduction for eligible expenditure incurred on training new and existing employees.

If eligible, you can claim a deduction on expenditure for external training courses delivered to your employees, either in person in Australia or online. The training must be provided by an external training provider registered in Australia. The boost is available until 30 June 2024. 

You can’t claim expenditure for training you undertake yourself as a business owner, such as where you are a sole trader, partner in a partnership or independent contractor.

Work-related car expenses

Business owners who use their personal car for work-related reasons, apart from driving to and from work, can usually claim running costs as a tax deduction where a valid logbook has been kept for a representative period of three months. Or you can use the cents per kilometre method for up to 5,000 kilometres. To be eligible, you must be the owner of the car and your travel must be part of your working day. For example: driving between offices, special trips to the post office, bank or moving from one job site to another are considered work-related expenses.

Employees can also claim car expenses in similar circumstances.

Consult the ATO website

Our tips are not tax advice and are intended to be general in nature. We recommend you keep a record of all your receipts and working hours as evidence, and that you seek expert advice from a registered tax professional before you lodge your return.

For more information on what you can and can’t claim check the ATO website and for businesses check out ATO website for business. 

Get started

Build your tax and super skills this tax time with Essentials to strengthen your small business. A flexible and free online learning platform with courses for small businesses to learn how to get their tax and super basics right. To help you this tax time, and throughout the year. Not too sure where to start? you can always talk to the experts and get the help you need by speaking to the ATO, or your registered tax agent, to help get you on your way. 

This article has been created in collaboration with the Australian Taxation Office. For more helpful tax info visit the ATO Community or the ATO website.

The post Don’t forget these tax deductions in your FY24 return appeared first on The Origin Blog.

Understand your energy costs

Most often, the term; “energy-efficiency” refers to simply decreasing the amount of energy you’re using. But for many businesses, there’s an opportunity to ensure that the energy you’re using is working for you. Understanding your energy bill and how you use energy is the first step towards getting the most out of it.

Look at demand management

Australia’s energy networks are under the biggest strain during high demand times, or what’s known as electricity peak times. During these times, the cost of energy is usually higher because of the infrastructure needed to deliver it. To take the pressure off the country’s electricity networks, many energy providers offer incentives such as cheaper prices during off-peak times. Depending on the type of business you run, it may be worth exploring whether an off-peak energy rate could help reduce your bill. 

Assess the effectiveness of your electricity

If you own or manage a large business¹ then the term Power Factor should be one you’re familiar with — understanding it could help you lower your business’ demand charges, and therefore, your running costs.

Power Factor refers to the effectiveness of incoming electricity. Sometimes, a poor power factor can affect the performance of equipment, since it uses more electricity to operate. Power Factor Correction units are available to increase the efficiency of your power supply (and may reduce your energy costs). Our business experts break down everything you need to know about Power Factor for your business.

Request a tariff review

A tariff is a pricing structure – set by the distributor in your area – it’s the way that your business is charged for the energy used.

Network tariffs are regulated by the Australian Energy Regulator (AER) and are usually set according to your previous consumption levels, location, the time you use the most electricity and your ongoing demand.

By assessing the way your business is consuming energy, via the usage patterns on your bill or our online portal, there may be an opportunity to change your tariff and explore whether a different tariff would suit your needs better. Reach out to our Business team who would be happy to review the available tariffs with you.

Go solar

We know how important it is for business owners to make financial decisions that are smart and efficient. Investing in solar allows you to reduce your electricity bills by harnessing energy from the sun during the day, which is when many businesses are typically using the most electricity. And with the development of alternate payment options, businesses now have more flexibility when it comes to purchasing a solar system. 

Beyond reducing your overheads, solar is a great way to help your business reduce its greenhouse gas emissions and reach your decarbonisation goals. 

If you use more electricity during daylight hours, solar power could help you cut down your business operating costs by taking control of the costs of daytime energy. Businesses that own the property or have a long-term lease, with large roof space that isn’t blocked by too much shade could benefit from installing solar panels.

The post How your business could save with an energy health check appeared first on The Origin Blog.

The Australian solar energy sector is growing at a rapid pace, thanks to some of the best solar irradiation in the world, combined with a committed Federal policy to support sustainable energy. So now is a great time to invest in a solar energy solution, whatever sector your business is in.

Boost your bottom line

We’re all looking to be smarter, more efficient, and spend our time on items that benefit our business. That’s why adopting solar is a smart financial choice for many Australian businesses. Solar power produces electricity during daylight hours, which is typically when businesses use the most electricity and pay the highest rates. With the development of alternate payment options, businesses also have the flexibility to go solar without investing in a solar power system, in an approach also known as a Power Purchase Agreement (PPA).

With a Power Purchase Agreement (PPA), a solar power system is tailored to the needs of your business, and rather than purchasing the solar system outright, businesses purchase the electricity the system produces. Origin’s PPA, called Solar Flex, offers customers various term agreements between 5–15 years, where Origin will install, monitor, and maintain the system throughout the agreement. Businesses will start to see the benefits with a reduction in energy costs as soon as the system is installed, thanks to harnessing the power of the sun.

Invest in your property

Aside from saving on energy, buying a solar system for your building is a great investment into the property’s worth. Solar panels are durable, safe, and easy to install, which means you’ll rarely have to worry about repairs, but you still get to reap the rewards. If you ever plan to move on from the property, then Origin has you covered through a simple sales transfer of ownership.

Reduce your environmental footprint

For ethical reasons alone, it’s an admirable choice to switch your business to solar energy. Switching to solar is an environmentally sustainable investment, as it can significantly reduce the greenhouse gas emissions generated by your business. Making the decision to invest in solar energy is a great way to reduce your carbon footprint, whilst also saving money in the long-term.

Your customers

Adopting solar energy to your business may also grow your business profile in both your community and your industry. These days, sustainability and corporate responsibility can be part of a company’s public persona. Making the switch to solar can be a visual way of exhibiting your commitment to the environment and may encourage likeminded customers and suppliers to work with you. It’s another opportunity to win over prospective customers, and it provides an opportunity to create a real link with your customers and suppliers.

As the sun sets on another day, more and more Australian businesses are learning that solar energy is the future of energy. Recent developments in solar technology, combined with the increased availability of solar panels, means that installing a solar solution for your business has never been easier, or more affordable.

The post Should you invest in solar for your business? appeared first on The Origin Blog.

Written by Chau Le, Group Manager, Strategy

Helping Australians change gears  

Australians have been relatively slow to take up EVs compared to the US and Europe, where the market has grown at a rapid rate.  

Concerns around how far you can drive an EV before needing to charge it, lack of charging infrastructure and the absence of subsidies, tax breaks or policies supporting greater take-up have all contributed to soft EV sales. EV sales comprise just 0.6 per cent of new car sales in Australia each year. 

But this is starting to change, with nearly 60 per cent of Australians saying they’d consider buying an EV as their next car.  

Many perceptions of EVs in the Australian market are a bit outdated and we want to accelerate the s70hift to a different mindset. While EVs typically cost more up front compared to a petrol vehicle, they’re cheaper to run.

For a start, electricity as a fuel is cheaper than petrol. EVs require less maintenance and are less prone to mechanical issues than combustion engine vehicles – and there is no difference in performance. EV costs will continue to come down the cost curve, making them even more competitive on costs over time. 

Today EV models can drive for upwards of 500km on a single charge. Manufacturers are releasing new models all the time to suit all budgets – not just the luxury market.  

Businesses will drive the EV market forward  

Business fleets make up around half of all new vehicles sales in Australia. This means that by supporting businesses to transition their fleets to EVs, we can help make a significant dent on emissions from the transport sector.  

By stimulating demand for EVs in the fleet market, manufacturers will be more confident to release more models locally. And, in time, with the flow-through of EVs to the second-hand market and more EVs on the roads, we hope this will encourage more private vehicle owners to make the switch. 

Accelerating emissions reduction with Origin 360 EV 

We’re proud to launch Origin 360 EV Fleet which will make switching to electric vehicles easier for Australian businesses, helping to lower both their carbon footprint and their operating costs. 

Origin 360 EV Fleet brings together Australia’s leading energy retailer with Australia’s leading fleet management company, Custom Fleet, to provide a one-stop shop for EV fleet procurement, management and charging.  

It’s a natural extension of the range of clean energy products and services we already provide to our business customers, including solar and battery solutions. 

Lower costs for business 

Most importantly for businesses with an eye on their bottom line, electrifying their fleets makes commercial sense because they are cheaper to run. EVs cost about 70 per cent less to run per km, with a cost on average of $0.14/km on fuel for petrol vehicles compared to $0.04/km in electricity costs on a similarly driven EV. 

Customers who want to explore how switching to EVs could benefit their business can contact us for a personalised consultation.  

More to come  

Origin has committed to transitioning all 600 of our passenger and light commercial vehicles to electric vehicles by 2030.  

Origin is undertaking an EV smart charging trial with support from ARENA that will provide important insights to drive the take-up of EVs in the Australian market.  

We’re represented on the board of the Electric Vehicle Council, and we’re a member of EV100 – a global initiative to accelerate the uptake of EVs.  

We’re accelerating our EV plans and will have more news about other EV solutions soon. Watch this space!

The post Driving towards an electric future appeared first on The Origin Blog.

The past year has been rough on Melbourne. We’ve all seen the impacts of COVID-19 on Melburnians and on the businesses and institutions that make Melbourne the incredible city it is.

We’re proud to join together with other leading businesses to support ‘Let’s Melbourne Again’ to bring life back into the heart of Melbourne. Over the summer months, the businesses supporting Let’s Melbourne Again will be creating brilliant acts and experiences to spark joy and support the city’s economy.

Supporting our business customers

With many small businesses across Australia impacted by COVID-19, we’ve assembled some help and guidance to support our business customers when they’re experiencing challenging times. We’re supporting businesses who are doing it tough with payment extensions, payment plans and hardship support.

And in support of the Let’s Melbourne Again initiative, we’re crediting SMEs in the Melbourne 3000 postcode with their Spring Supply Charges (from 1 September 2020 to 30 November 2020).

It’s our way of helping Melbourne to ‘Melbourne’ again.

Origin business customers

So how did our Melbourne business customers fare during one of the world’s longest lockdowns? And how are they doing now?

We spoke to a few of them to find out.

The post Giving good energy back to Melbourne appeared first on The Origin Blog.

One business that has recently taken advantage of the benefits of solar to meet its increasing energy needs is Griffith Central Shopping Centre. Located in the centre of Griffith, NSW, Griffith Central has established itself as an integral part of the local community, which supports the surrounding townships too.

Like many businesses, Griffith Central was looking for an affordable energy supply while reducing its carbon footprint. Owned by The Trustee for Violi Family Trust, the family had been in the market for commercial solar for a few years and had been approached by solar suppliers Australia-wide before choosing Origin in February 2020.

Griffith’s largest rooftop solar system

Origin has now installed a 600kW solar system for the centre, becoming Griffith’s largest rooftop solar system.

“Origin took all the risk and all the hassle out of the process for us,” said owner Frank Violi.

“The price was very competitive, and Origin allowed us to have a repayment plan. Origin is a reputable established energy company. We had faith in the brand to deliver a quality project.”

The system was designed using Trina panels and Fronius inverters, some of the best in the market. Comprising 1820 individual panels, Origin estimates that the centre could reduce its grid energy by 30 percent and that the system will have paid for itself within five years with those reduced energy costs.

Supporting local

As a local business itself, it was also very important to the Violi family to use a local installer, so Origin partnered with Andreazza Electrical to provide that local expertise and support.

The installation took place over eight weeks during October and November 2020, and whilst Covid-19 presented delays in procurement, Origin delivered the system on time and within budget.

For Griffith Central, the holiday season and extended operating hours in previous years has meant increased energy demand and associated higher costs. Now with the solar system grid-connected, the centre looks forward to an estimated $100,000 of energy savings in the first year alone.

By installing solar, Griffith Central is demonstrating to its customers its commitment to sustainability.

“The entire process has been flawless. Origin has been very easy to work with. They have kept us informed of all activities along the way.”

Frank Violi

Now that’s what we call getting energy right for our customers, community and the planet.

Interested in a smarter, renewable future for your business? Simply fill in our online form and we’ll be in touch to discuss the best solution for your business.

The post Griffith Central switches on to solar appeared first on The Origin Blog.