Are you up to date and aware of what you can and can’t claim on your tax return this year? Brushing up on the three rules of work-related deductions can make tax time a lot easier.
In order to be able to claim a deduction for a work-related expense on your tax return, you must meet the following golden rules of the Australian Taxation Office (ATO).
These need to be claimed in the Work-related expense section of your tax return.
If the expense was for both work and private purposes, you only claim a deduction for what was the work-related use. You cannot claim a deduction if your employer pays for or reimburses you for any of these costs.
These work-related expenses may include:
If the ATO believes that your employer may reimburse you for your expenses they may ask your employer directly.
You may be able to claim other work-related deductions for expenses you incur in the course of earning your income. These are claimable in your tax return as an ‘Other work-related expense’.
Common claims in this section of the tax return include:
When it comes to working from home expenses, you need to be careful of what you claim. To claim your working from home expenses you must:
You can claim a deduction for the additional running expenses you incur as a result of working from home.
Running expenses are expenses that relate to the use of facilities within your home and include:
You can’t claim a deduction for the following expenses if you’re an employee working at home. These include
If your employer pays you an allowance to cover expenses, you can claim a deduction for the expense. However, you must include the allowance as income in your tax return.
You may also be able to claim a deduction for other expenses you incur that don’t relate to your work or income-producing activities. These are claimable in your tax return at the specific expense category (where available) or as an ‘Other deduction’.
Common claims in this section include expenses, such as
If you require assistance with ensuring that your individual income tax return is correctly lodged, a registered tax agent should be consulted (such as us). We’re equipped with the knowledge and tools to help you through this process.