Source:- www.ato.gov.au

Standard Tax Deductions- Personal Tax

According to the ATO you need to have made the purchase in the course of earning your assessable (taxable) income and it must not be a private, domestic or capital expense. If the expense was both work-related and private or domestic, you can only claim a deduction for the work-related portion.

The basic rules for claiming a deduction are that you:

• must claim the deduction in the same income year that you made the purchase
• can’t claim an expense that you have been, or will be, reimbursed for
• may have to substantiate your claims with written evidence.

Different rules apply for expenses where you prepay for a service that extends beyond the current income year.

Vehicle and travel expenses

You can claim vehicle and other travel expenses directly connected with your work. Generally, you need to keep records of your travel expenses.

You may be able to claim travel expenses you incurred for meals, accommodation and incidentals while away overnight for work. If you are using a borrowed car or a vehicle other than a car for work purposes, you may be eligible to claim costs you incur (such as fuel costs) as travel expenses.

You may also be able to claim vehicle deductions in some circumstances, as well as for some travel between two workplaces.

Clothing, laundry and dry-cleaning expenses

You can claim a deduction for the cost of buying and cleaning occupation-specific clothing, protective clothing and unique, distinctive uniforms.

To make a deduction you may need to have written evidence that you purchased the clothing and diary records or written evidence of your cleaning costs.

Claiming a computer, phone or other electronic device as a work-related expense

If you are an employee and required to use your computer, phone or other electronic device for work purposes, you may be able to claim a deduction for your costs. There are rules you need to check, and records you need to keep.

Interest, dividend and other investment income deductions

You can claim a deduction if you are able to show that you incurred expenses earning interest, dividend or other investment income.

Your expenses might include:

• account-keeping fees for accounts held for investment purposes
• management fees and fees for investment advice relating to changes in the mix of your investments
• interest charged on money borrowed to purchase shares or other investments.

Self-education expenses

You may be able to claim a deduction for self-education expenses if your study is work-related or if you receive a taxable bonded scholarship. In some circumstances you have to reduce the amount of your claim by $250.

Tools, equipment and other assets

If you buy tools, equipment or other assets to help earn your income, you can claim a deduction for some or all of the cost. The amount you can claim depends on the amount of time you use them for work purposes. For example, if you bought a power tool or a computer which you use half for work purposes and half for private purposes, you can claim only half the cost or decline in value.

The type of deduction you claim depends on the cost of the asset:

• For items that don’t form part of a set and cost $300 or less, or form part of a set that together cost $300 or less, you can claim a deduction for their cost.
• For items that cost more than $300, or that form part of a set that together cost more than $300, you can claim a deduction for their decline in value

For more information on expenses you can claim- please contact the office.

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