Friday Tax Tip – Tax time deductions

Friday Tax Tip -Tax time deductions, a guide to help make your deductions easy with ATO occupation guides. Occupation Guides help you get your deductions right, whether you work in an office, herd cattle or drive trucks!

What are Work-related deductions?

Deductions are directly related to earning your income. Therefore when completing your tax return, you’re entitled to claim deductions for some expenses.

To claim a work-related deduction:

• Firstly, you must have spent the money yourself and weren’t reimbursed
• it must directly relate to earning your income; and 
• lastly, you must have a record to prove it.

Additionally, if the expense was for both work and private purposes, you can only claim a deduction for the work-related portion. Furthermore, work expenses reimbursed to you by your employer are not deductible.

Consequently, information from your employer gain be obtained if you are found to have claimed a deduction for an expense that you have already been reimbursed for.

You may be able to claim a deduction for expenses that directly relate to your work, including:

• Vehicle and travel expenses
• Clothing, laundry and dry-cleaning expenses
• Home office expenses – for employees working from home as a result of COVID-19, we have specific information available about home office expenses
• Self-education expenses
• Tools, equipment and other assets
• Other work-related deductions

Whats more, Employees (including casuals) can claim work-related expenses in the financial year they are incurred. In other words if you start employment in June but don’t receive income until the next financial year, you can claim deductions for work-related expenses incurred in June.

However, if you employ someone to assist you in your employment, generally you can’t claim a deduction for employing that person.

Other deductions

In addition, you may also be able to claim a deduction for:

• ATO interest – calculating and reporting
• Cost of managing tax affairs
• Gifts and donations
• Interest charged by the ATO
• Interest, dividend and other investment income deductions
• Personal super contributions
• Undeducted purchase price of a foreign pension or annuity

Occupation and industry specific guides

Importantly, you must include all the income you received during the financial year in your tax return, including salary and wages and allowances.
To claim a deduction for expenses that relate to your work:

• 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.

Lastly, the following guides for specific industries and occupations will help you to correctly report your income and allowances, and claim deductions for the work-related expenses you are entitled to:

• Adult industry workers
• Agricultural workers
• Australian Defence Force members
• Building and construction employees
• Bus drivers
• Call centre operators
• Cleaners
• Doctor, specialist or other medical professional
• Engineers
• Factory workers
• Fire fighters
• Fitness and sporting industry employees
• Flight Crew
• Guards and security employees
• Hairdressers and beauty professionals
• Hospitality industry employees
• IT professionals
• Lawyers
• Meat workers
• Media professionals
• Mining site employees
• Nurses, midwives and direct carers
• Office workers
• Paramedics
• Performing artists
• Pilots
• Police
• Professional sportsperson
• Real estate employees
• Retail industry workers
• Sales and marketing
• Tradesperson
• Train drivers
• Teachers and education professionals
• Travel agent employees  
• Truck drivers

WE ARE HERE TO HELP
Need help with your Tax return and deductions?  The team at Gerard Wilkes & Associates are here to help. Feel free to contact us at https://www.wilkes.com.au/contact-us/ or call us on 07 5532 1733 for assistance.  

Information referenced from: https://www.ato.gov.au/Individuals/Income-and-deductions/Occupation-and-industry-specific-guides/