According to the ATO “When completing your tax return, you're entitled to claim deductions for some expenses, most of which are directly related to earning your income. As a rule of thumb, if you need to spend money to earn income, you can usually claim it – either as an immediate deduction or over time.”
To be a legitimate expense claim, you have to be able to show:
you need to incur the expense to earn the income
the expense is not private or domestic in nature
the expense is not an outgoing of capital or of a capital nature related to a capital asset
So what kinds of deductions relate to building and protecting your wealth?
Interest, dividends and other investment income, such as some interest income expenses and some dividend and share income expenses
Personal superannuation contributions (eligibility and how much you can claim depends on criteria such as age and work status)
Un-deducted purchase price of a foreign pension or annuity
Income protection insurance
Some costs associated with managing your investments and wealth
Understanding wealth management deductions means getting quality advice. BlueKite Capital’s Private Client Advisers can work closely with your Accountant to help you understand these deductions and show you how to make best use of them in your personal circumstances.
Please contact Venn Williams, CEO BlueKite Capital on 0416 251 140 or email v.williams@bluekitecapital.com.au to find out more.