What happen in the case of work and private purposes expenses? Is substantiated by appropriate records.Is directly related to the taxpayer’s income earning capacity.Has been incurred and not reimbursed by the employer.When claiming work-related expenses, you need to ensure that the expense: Work-related expenses commonly include expenses for car and travel, clothing, laundry dry-cleaning, self-education and tools and equipment relating to earning your income So, according to Jordan, for 2018 the ATO will target its focus to individuals and small business, including work-related expenses, share economy, undeclared business income, wrongly-claimed non-business expenses and unpaid superannuation guarantee contributions. Every year, they identify areas within the tax system to target.Īccording to the Australian Tax Commissioner, Chris Jordan, on an interview with the magazine Acuity on December 2017, the “tax gap” – the estimated gap between tax theoretical tax payable and the amount actually paid – is bigger for small taxpayers as a group than for its “large market” group of big businesses. You will need to provide a notice of intent to claim form to your super fund and receive acknowledgement from the fund before doing your tax return.īook a time with us now to prepare for your tax return and we’ll make sure you maximise your allowable tax deductions this year.The Australian Taxation Office (ATO) is using increasingly sophisticated techniques to identify taxpayers whose tax return disclosures do not match other data the ATO holds. If you have made personal superannuation contributions separate to your employer’s superannuation guarantee contributions, you may be able to claim this as a tax deduction. These guides are a great starting point if you are not sure what you can claim, but we can give you information tailored to your situation when you do your tax return. There are handy ATO fact sheets for many industries, including hairdressers, teachers, performing artists, hospitality workers, lawyers, medical professionals and more. The ATO recognises that some occupations and industries have specific requirements that employees need to pay for. Occupation and Industry Specific Guidelines Small tools of trade, protective items, professional references and laptops are some examples of equipment you may be able to claim. Tools and equipment – if you buy gear to help you in your job, these may be claimable.Self-education expenses – some education expenses that relate to your current employment are claimable.For people who usually work from home, check the ATO home office expenses calculator to maximise the allowable deduction. You will need records of the hours you have worked from home to claim the ATO special rate. This allows for a flat rate of 80 cents per hour for work time. Home office expenses – the shortcut calculation is still available this year for people who have worked from home due to COVID-19.Clothing, laundry and dry-cleaning expenses – you can claim for occupation specific clothing, uniforms and protective gear.Vehicle and travel expenses – make sure you have a travel diary to record details of trips taken for your employment. Make sure you have invoices and receipts as proof of payment for any work-related expenses. The expenses must relate to your earnings as an employee. To claim a tax deduction, you must have spent the money out of your own funds and not have been reimbursed by your employer. Records of any other payments received from overseas sources, prize winnings, insurance or investments.Įmployees are entitled to claim work-related expenses as a tax deduction.Records from cryptocurrency wallets showing transactions and the balance of each currency at 30 June.Records of government payments received.Proof of earnings from other sources such as crowdfunding or share economy platforms.Bank statements that show interest income.Gather all your records for anything you have earned apart from salary and wage payments from employers. Any other income such as prize money, compensation or insurance payments.Įven if you have only earned a small amount from one of these sources, it still needs to be declared on the tax return.Sharing economy income such as Uber or Airbnb.Investment income including interest earned and dividends paid.
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