Are you currently getting your paperwork together to see your Accountant?  Or are you doing your own tax return this year?  Regardless, you’re probably trying to work out which of your receipts, tax invoices and documents can be used as a deduction to offset some of your work related expenses.  It’s important to get your deductions right as deductions for work-related expenses is regularly an area of focus for the ATO.

It’s important to understand what constitutes a work-related expense.

There’s three basic rules:
  1. It must be directly related to earning your income
  2. You must have a record to substantiate your claim, such as receipts, invoices or bank statements
  3. You must have personally incurred the expense and not have been reimbursed by your employer.

If the expense was for both private and work purposes, like your internet use, you can only claim a deduction for the work-related percentage.

It’s also important to ensure that you have the correct paperwork in place in the event of an audit.  If the total claim for work-related expenses is less than or equal to $300, you don’t need to provide written evidence, however you do need to be able to show how you worked out your claim.

If the total claim is greater than $300, then written evidence to substantiate your claim is required.  There’s also certain claims that aren’t included in this $300 including; car expenses, meal allowance, travel allowance expenses, etc.  These have their own specific written evidence rules.

Now, you have your basic rules and your paperwork, what are some of the types of work-related expenses?  You may be eligible to claim a deduction in a number of areas, such as;

  • Home office expenses
  • Mobile and home phone expenses
  • Internet expenses
  • Tools and equipment expenses
  • Car expenses
  • Clothing, laundry and dry-cleaning expenses
  • Work-related self-education expenses

There’s a lot of “ifs” and “buts” when it comes to your individual tax return, which is why we think it’s important to seek professional advice to gain a comprehensive understanding of your eligibility.

So to make the most of YOUR return, contact LBW Business + Wealth Advisors on 5221 6111 to make an appointment with one of our qualified and experienced accountants.