When completing your tax return, you are entitled to claim deductions for most expenses which are directly related to you earning your income.

According to the ATO, to be able to claim a work-related deduction the following criteria must be met;

  • You must have spent the money yourself and weren’t reimbursed
  • It must be directly related to earning your income
  • You must have a record to provide it.

There are many cases where an expense is for both personal and work purposes. A common example of these expenses are mobile phones and motor vehicles. In the case that expenses are both for work and personal, they must be proportioned to distinguish the personal expense.

You cannot claim a deduction for an expense that you were reimbursed for. It is always worth checking with your employee to ensure you were not reimbursed for an expense. It is important to note that reimbursements will not always show up on your group certificate.

The ATO have created a list of expenses which you may be able to claim as a deduction if they are directly related to your work. They include;

  • Vehicle and Travel expenses
  • Clothing, laundry and dry-cleaning expenses
  • Home Office expenses
  • Self-education expenses
  • Tools, equipment and other assets
  • Other Work-related deductions

To claim an expense, it must be claimed in that year that the expense incurred. If an item you have purchased for work purposes is over $300, you must depreciate that expense over a certain number of years. Each item’s depreciation rate varies depending of the value and expected life. You can find more information about depreciating on the ATO website.

It is good to ensure you are prepared for the next financial year and that you meet the above criteria when claiming a deduction.

If you are not sure whether you are entitled to a deduction or even what you can claim as a deduction, we recommend seeking advice from your Accountant.