Tax law is complicated and to help you with this we have provided the guidance below that you should use with the recommendation that you also seek help from us with these claims at the time that we are preparing your tax return.
WORK RELATED CAR EXPENSES
- Claimed if you use your own car for your job examples include:-
- Carrying bulky tools and there is no storage at your work
- Travel to a conference or to visit clients
- Deliveries or collect materials
- Travel between two jobs (Not from home)
- Perform itinerant work.
Tip’s
- If claimed correctly this is one of the best deductions
- There are two methods for cars “log book” & “cents per km” – new rates for 2023
- The tip here is to keep a logbook.
This can be completed by and app like mile catcher
https://milecatcher.com/
- You must take down the odometer reading at the start of your logbook
- You must also take the odometer reading at the start & end of the financial year
- You generally can’t claim travel between work and home
- You can’t claim if your vehicle has been salary sacrificed
TRAVEL EXPENSES
- You can generally claim meals, accommodation and incidentals if you travel for work and stay overnight
- Claim the cost of a borrowed vehicle or other vehicle (truck, motor bike etc)
- Air, bus, train, tram & ride share, if travelling for work
- Tolls, car park and car hire
CLOTHING AND LAUNDRY
Protective clothing
This is clothing that protects you from above average risk while you are at work.
Examples of this are:-
Steel capped boots, non-slip nurses shoes, overalls and white coats for doctors, heavy duty trousers and shirts,
clothes that have a high density weave which gives a UV rating to protect users from the sun while they are working outdoors.
- Compulsory Uniform
- Clothing that distinctly identifies the employer’s organization.
- Three conditions to be satisfied are the employer has an express policy, all employees in that class must wear the uniform and the policy must be enforced.
- Non-Compulsory Uniform
- Uniform that the employee wears that is registered with AusIndustry i.e. has a logo.
- Occupation specific
- Clothing that relates to you to your trade i.e. chefs checked pants
- Conventional clothing
- Simply not deductible
- Laundry & Dry Cleaning
- You may claim if it relates to the laundry of your deductible uniform as listed above.
- You may claim up to $150 without written evidence only if all other work-related expenses are less then $300. The reasonable amount to claim is $1 per load.
Tip: A safe way to make this claim is to keep your laundry receipts for dry cleaning.
SELF EDUCATION
These are related to a course of education provided from a school, college or university. It is used to gain a formal qualification.
You can only claim this if you are currently employed and the course you are studying directly relates to your employment to maintain and improve that skill.
We usually have to assess this on a case by case and examples are:-
Business coaching and business development courses,
tuition fees under fee-help, os-help, vet fee-help, cost of text books, student union fees, transport between home and the institution.
Tip You cannot make a claim for course fees or associated expenses if they are subsidized with HECS-help, HELP, SFSS, SSL or TSL.
OTHER WORK RELATED DEDUCTIONS
- Below are a few ideas for some deductions.
- Home Office – new ATO rules for 2023 for hours working from home
- Tools – any item costing over $300 will require to be depreciated
- Brief case, carry bags, suitcases & handbags used for work purposes
- Calculators, computers, printers, stationery
- Conferences, seminars, professional fees, union fees
- First aid course, protective equipment (sunscreen, sunglasses, covid masks), reference material, text books
- Telephone and internet, work related % (from 2023 cannot be claimed in addition to Home Office)
OTHER ALLOWABLE DEDUCTIONS
SUBSTANTIATION
Substantiation means you need proof that you paid for the item you are claiming as a deduction.
Threshold
If the total of all the work related expenses is $300 or less then you may not have to substantiate your claim (Although you must have spent the money on deductions).
If your deductions are over $300 you must look to substantiate your claim.
Tip You can only claim deductions for expenses that relate to taxable income. They must be paid in the financial year that they are paid.
PERSONAL TAX RATES
These tax rates apply to individuals who are Australian residents for tax purposes. Please look at this updated tax table.
