July 2016
The rules around what you can personally claim as a work-related tax deduction are fairly rigid - otherwise everyone would be claiming everything even vaguely associated to what they need for work.
Is the item connected to the work you do?
Now if like many women, you use the same bag away from work, there is an immediate and fairly obvious problem. It's fairly unlikely it is only going to be used for work purposes and it would be up to you to prove otherwise.
This isn't just a briefcase vs handbag debate: the same issue applies to many other deductions.
Make sure you can prove it
Did your employer already pay for it – directly or indirectly?
If you already claimed the cost of the item you purchased from your employer, you can't generally claim it as a personal deduction. The same applies if your employer provides you with an expense account or payment as part of your remuneration package to cover specific costs.
The ATO always requires a receipt or paperwork to support any purchase you claim a deduction for. If you don't have this and you are audited, then the ATO will simply deny your deduction.
Does the price tag make a difference?
The weird and wild tax deductions available
- Claiming your home internet expenses – this is an area the ATO has flagged for close review. Teachers, in particular, have come under scrutiny in previous years for claiming all of their home internet expenses as work-related expenses. It's important to get the proportions right. If you are required to work from home and use the internet to do this, you can only claim that portion of your internet expenses you spent working.
- Hand cream – yes for airline crew but not builders.
- Gym membership - Members of the Australian Defence Force in Special Forces can claim gym fees and other related costs in some cases as they need to maintain such a high level of fitness. Landlords can claim costs associated
to their rental property such as flying interstate to inspect the property. But, be warned, if you do anything other thaninspect the property and return on the next plane, your deduction may be reduced or declined. If you spend time doing something other then inspecting your property, then you can only claim the portion of the costs related to the rental property. Also be aware that deductions claimed for rental properties must be in line with your ownership interest. If there is more than one owner, then you can only claim deductions in the same proportion as your ownership interest. - Newspapers and online news access - if you are a professional who can prove they need to be across the news then you can claim these costs.
It's not about gender
Access to tax deductions has nothing to do with gender – it's all about the basic rules of how closely connected the purchase is to your job and your ability to prove your case.
As always, before you claim, talk to your account about the eligibility of your deductions, ensure you have your evidence in place. Contact us on 02 9957 4033 for more information.
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Disclaimer
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
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