Australian taxation landscape is already very treacherous and recent pandemic (I do not think I need to mention the name) has made it trickier. Many businesses have asked staff to work from home and employees are wondering what deductions can be claimed come the tax time.
Given the uncertainty, I think it is timely that we should revisit three golden rules before claiming expense for any work-related deductions and these are:
you must have spent the money yourself and were not reimbursed;
it must be directly related to earning your income;
you must have a record to substantiate it (usually a receipt or a tax invoice).
All these rules are important but most important of them all is SUBSTANTIATION. Without a valid proof of an expense, commissioner of taxation may not allow work related deduction. For a range of possible expenses that can be claimed as a deduction by employees in various industries and jobs, please click here to visit ATO website
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