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Legitimate Work Related Expense Claims

Jun 27, 2018 | Accounting, Taxation

The end of the financial year is only a few days away and the ATO is warning taxpayers that they will be paying close attention to legitimate work related expense claims for ‘other work-related expenses’ this year. It is extremely important that you have a record of the expense and can demonstrate how you calculated your claims. Every year, the ATO disallows many claims because there is no evidence to prove the expense.

Some legitimate expenses that can be claimed under this category include:

  • home office costs.
  • mobile phone and internet.
  • union fees.
  • tools and equipment.
  • association memberships.
  • workshops and conferences.
  • income protection insurance.
  • books and magazine subscriptions.
  • interest charged by the ATO.
  • the cost of managing tax affairs.

If you incur an expense that relates to both work and private purposes, you are only entitled to claim a deduction for the work-related portion. Work expenses that are reimbursed to you by your employer are not deductible in your personal income tax return. If suspicious, the ATO can seek information from your employer.

The ATO have also created occupation specific ‘Work related expenses guides’. These provide examples of work-related deductions you may be entitled to claim specific to your industry. Click here>> to see if your occupation is included.

The team at DGL Accountants will start preparing Tax Returns from the 2nd July. Give us a call today to book in your appointment.