The ATO Are Like A Dog With A Bone. They are looking very closely at what you are claiming.
We are suggesting as a priority you speak to one of our experienced accountants in our office. With tax avoidance costing Australians 3 billion dollars annually, we thought it would be a great time to re-enforce just what you can claim, you can’t claim and how to claim.
Put simply there are three criteria Roy A McDonald and the ATO use to determine if you can make a work- related expense claim and they are:
(1) It actually happened
That seems obvious to most. The not so obvious thing is when the expense occurred. You must make a claim from a work related expense in the financial year the expense happened. If you are unsure or have expenses you haven’t claimed, don’t worry you can still claim this item and it would be wise to book an appointment ASAP to prevent problems in the future.
(2) It meets the deductibility test
You must show us the work-related expense was incurred in the course of gaining or producing assessable income: The income you declare on your tax return. These outgoings can’t be related to capital, private or domestic activities. The essential character of the expense must be income producing.
(3) It can be substantiated
If you are having trouble substantiating a claim, it is important, before you claim a deduction, you address your concerns with one of us here at Roy A McDonald.
How to claim:
You must provide us with written evidence to prove claims over $300. This limit does not apply to car expenses, meal allowances and travel allowance expenses. The evidence you supply must contain:
• The name of the supplier
• The amount of the expense
• Nature of the goods or service
• The date the expense was incurred
You can use the above evidence in combination with bank or credit card statements, Bpay references, email receipts. If you do not have a receipt for an expense then we suggest you talk to one of our specialist accountants who may have other alternatives for you.
The ATO is paying particular attention to overnight travel, work-related expenses relating to electronic and computer goods and transportation. We don’t want you to miss out on any deductions and have the hassle and worry of making an incorrect claim. If you are unsure of being able to make a claim, give us a call and make an appointment now.