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What does tax man not want you to claim?

As every year, the ATO is warning individual tax payers to not go crazy with their claims.

Basic conditions are:

  • 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 prove it.

Here’s a list of things they suggest you probably can’t claim on your tax return:

  1. Trips between home and work. Generally you can’t claim a deduction for these because they’re considered private travel.
  2. Car expenses for transporting bulky tools or equipment, unless:
    – you need to use your bulky tools to do your job
    – your employer requires you to transport this equipment
    – there is no secure area to store the equipment at work.
  3. Car expenses that have been salary sacrificed.
  4. Meal expenses for travel, unless you were required to work away from home overnight.
  5. Private travel, so if you take a work trip that includes personal travel you can only claim the work-related portion.
  6. Everyday clothes you bought to wear to work (eg, a suit or black pants), even if your employer requires you to wear them.
  7. A flat rate for cleaning eligible work clothes without being able to show how you calculated the cost.
  8. Higher education contributions charged through the HELP scheme.
  9. Self-education expenses when the study doesn’t have a direct connection to your current employment – your future or dream jobs don’t count.
  10. Private use of phone or internet expenses – only the work-related portion counts.
  11. Up-front deductions for tools and equipment that cost more than $300. However, you can spread your deduction claim over a number of years. That’s called depreciation.

You can find more details on ATO website . Even better, call us on 07 3160 7386 or email [email protected] to get a head start this year.

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