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  • Hi, Currently I am on a secondment that slightly differs from my normal job for example, I was an IT consultant that has been seconded into a Business Analyst for the last 6 months. In this time I'd like to study and get a qualification for a Business Analyst - am I able to deduce self education expenses for this? Kind regards,

    Jon Q asked about 2 months ago
    Self-education expenses are deductible when the course you undertake leads to a formal qualification and meets the following conditions.

    The course must have a sufficient connection to your current employment and:
    • maintain or improve the specific skills or knowledge you require in your current employment, or
    • result in, or is likely to result in, an increase in your income from your current employment.
    You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it:
    • might be generally related to it, or
    • enables you to get new employment.
    In order to answer your question, we will need to know your particular situation as the details of your secondment are relevant to what is considered your current employment. Please go to Small business and individuals and submit an early engagement request so we can discuss your specific circumstances with you.
  • Due to my wife 's breast cancer and the health expenses is high this year, and her husband paid the medical bills , is the husband able to claim this with his tax return?

    Azeffoun asked about 2 months ago
    You can claim a deduction for an expense you incurred in relation to producing your assessable income. So long as those expenses are not capital or private in nature.

    Medical expenses are considered a private expense; consequently you are unable to claim a deduction for the medical expenses you have incurred.

    The Net Medical Expenses Tax Offset (NMETO) is only available for:
    • Disability aids
    • Attendant care
    • Aged care expenses.
    As the medical expenses you have incurred do not falling into any of the above categories, you are unable to claim the NMETO.
  • Hi there is a lot of construction right beside my office and I am going to purchase noise cancelling headphones. Can I claim the cost of these as a taxable expense?

    SarahB asked about 2 months ago

    No. In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or capital in nature. You can claim a deduction for items that protect you from the risk of injury or illness caused by your work or your work environments. Your expense on noise cancelling headphones is not deductible as the construction noise outside your office, generally, is not sufficient to require protective equipment. Consequently, this expense would be considered as a private expense.


  • I use my car a lot for work related travel. I also own investment properties. Can I claim car travel expenses to my rental properties on top of the 5000km limit for business travel (using the cents per km calc method) ?

    Charise Orr asked about 2 months ago
    You can no longer claim travel expenses for inspecting your rental properties as of 1 July 2017.

    The cents per kilometre method sets a limit of 5000 business kilometres per car. This takes into account all of your income earning activities. Even if your travel expenses in relation to your rental property were an allowable travel expense, you cannot claim beyond the 5000km limit using the cents per kilometre method. If you are claiming car expenses you still need a record showing your business usage. Please see Car expenses for further information.

    Additional information
    I was referring to work related car expenses and rental property travel expenses incurred in FY17, before the changes from 1st July 2017. Could I claim car travel expenses to my rental properties on top of the 5000km limit for business travel for FY17

    Response:
    No. The cents per kilometre method sets a limit of 5000 business kilometres per car. This takes into account all of your income earning activities including travel to your rental properties. Therefore, you cannot claim beyond the 5000km limit using the cents per kilometre method.

    If you are claiming car expenses you still need a record showing your business usage. Please see Car expenses for further information.
  • Is the current rightdown for items in 2017/2018 tax year available to mobile phone equipment used to work for transport company? The work would be part time in nature.

    Brian ashton asked 2 months ago
    You can claim a deduction for an expense incurred in relation to producing assessable income, so long as that expense is not private or capital in nature.

    The fact that you work part-time does not affect your ability to claim a deduction, however you may need to apportion any expenses for business usage, as you cannot claim any of your private usage as a deduction. If you are claiming mobile phone calls or messages, you can get an itemized bill from your mobile phone service provider to show the costs you incurred in relation to your work.

    In relation to mobile phone equipment, generally you cannot claim the cost of equipment as it is of a capital nature. However you may be able to claim the depreciation of this equipment apportioned for business use. If the total cost of all of your mobile phone equipment (apportioned for business use) is less than $300, you may be able to claim those expenses in full in the 2017/2018 financial year. See Tools, equipment and other assets for further information.

    Please ensure you keep records of your expenses in the event that you are required to substantiate your claims.

    You can use the ATO app myDeductions tool to keep track of your expenses and receipts throughout the year. Visit https://www.ato.gov.au/mydeductions for more information.
  • If my business provides a massage therapy service to my workers, is it claimable on tax?

    Peter M asked 2 months ago
    A business can claim deductions for expenses incurred in carrying out a business for the purpose of producing assessable income, so long as those expenses are not capital or private in nature.

    As you are providing a non-cash benefit to your employees, you may also be liable to pay fringe benefits tax (FBT). This will depend on the amounts you are incurring in providing your employees with the massage therapy services. Generally if these benefits are minor they will be exempt from FBT. Please check Fringe benefits tax (FBT) and Minor benefits exemption to determine if you are required to pay FBT for your employees.
  • Hi i am working in Sydney and visit vendor in Sydney on working day to discuss a business matter is this FBT related Expense ? or business meal ?

    gracechoi asked 2 months ago
    If you are paying for your own meals, then it is not a fringe benefit. As meal expenses are generally considered to be a private expense, you will not be able to claim a deduction for your meal, even if it is relation to a business matter.

    If your employer is paying for your meals, or reimbursing your costs, this is a non-cash benefit and may require your employer to pay FBT. This will depend on the amount and frequency that your employer is paying for your meals. More information on FBT can be found at Fringe benefits tax (FBT).
  • When I travel away on business can i claim Pet care (dog boarding + additional pet expenses) during this time on tax as part of my travel expenses?

    skconsultancy asked 2 months ago
    No. In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or capital in nature. Your expense incurred for the care of your dog is considered to be private in nature and cannot be claimed as a deduction.
  • I am working in Government in Information Technology field and completing a Master’s Degree in Information Technology which will provide me more in-depth ideas of current technologies and eventually will help me to earn more in same field when I finish my study. Even the course is officially approved from my workplace as a career development stage. I got some scholarship from the University and the rest I am managing with the FEE-HELP Loan. Definitely, the Fee Help loan minimum repayment amount is now being deducted from my salary. Can I claim that repayment amount? Kindly can I know what the expenses I can claim are? My course title is Masters in Information Technology Management. I am going to attend a conference called University Scholars Leadership Symposium on August. However, I am paying the registration fees and travel costs this financial year. Can I claim that on this year or I have to claim it on next year?

    Md Zaidul Alam asked 2 months ago
    Self-education expenses are deductible when the course you undertake leads to a formal qualification and meets the following conditions.

    The course must have a sufficient connection to your current employment and:
    • maintain or improve the specific skills or knowledge you require in your current employment, or
    • result in, or is likely to result in, an increase in your income from your current employment.
    You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it:
    • might be generally related to it, or
    • enables you to get new employment.
    These tests also apply to the University Scholars Leadership Symposium, you cannot claim costs for this unless it also directly relates to your current employment using the same tests as above. If it is a deductible self-education expense, you can claim a deduction in the year in which you incur the expense.

    You cannot claim FEE-HELP repayments as a tax deduction, as these are specifically disallowed at law.

    See Self-education expenses for further information and a list of expenses you may be able to claim.
  • I am a counsellor. Can I claim the cost of my own personal therapy, to manage stress and burn out essential for my profession?

    Eli777 asked 2 months ago
    You can claim a deduction for expenses incurred in relation to producing assessable income, so long as that expense is not private or capital in nature.

    Medical expenses such as therapy are considered a private expense; as such you cannot claim a deduction for them.
  • I have claimable education fee to claim. The learning facility deduct the fees on a fortnighly basis from a credit card. I don’t have a credit card so Mum offered her card for the payment for which I give her the costs back. Can I still claim my education deduction.

    Mitch G asked 2 months ago
    You can claim a deduction for any expense you incur in relation to producing assessable income, so long as those expenses are not capital or private in nature.

    Self-education expenses are deductible when the course you undertake leads to a formal qualification and meets the following conditions.

    The course must have a sufficient connection to your current employment and:
    • maintain or improve the specific skills or knowledge you require in your current employment, or
    • result in, or is likely to result in, an increase in your income from your current employment.
    You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it:
    • might be generally related to it, or
    • enables you to get new employment.
    See Self-education expenses for further information.

    If you are eligible to claim self-education expenses you will need to be able to prove that you are incurring these expenses. As these fees are coming from your mother’s account, you will need to show:
    • the expense is for you (through invoices etc),
    • documentation indicating that your mother is paying for these fees on your behalf, and
    • documentation demonstrating that you are directly reimbursing your mother for these costs.
    If the self-education expense is deductible and you have all the above evidence, you can claim a deduction for the education fees.
  • Can you claim pre-employment medical assessment fees?

    annakleinn asked 2 months ago
    You can claim a deduction for expenses incurred in producing assessable income, as long as those expenses are not capital or private in nature.

    Medical expenses are generally considered to be private in nature and are not deductible.

    Expenses incurred prior to commencing employment cannot be claimed as they are incurred before you produce assessable income. This is the case even if it is a requirement to gain employment.

    You are unable to claim your pre-employment medical assessment as a deduction as it is a private expense, and was incurred prior to you producing assessable income.
  • Hi, I am a Registered Nurse/Midwife. I traveled overseas last year to work as a volunteer midwife. The trip was through a volunteer company, not through my work. I am wondering if any of this can be claimed and if so what parts of the trip?

    LauraP asked 2 months ago
    No. You cannot claim deductions for travel expenses in relation to your volunteer activities. Tax deductions are allowed for expenses which are incurred directly related to earning your assessable income. As volunteers do not usually earn income, the travel expenses you pay for while volunteering are private and are not deductible.
  • Im a owner truck driver and want to know can i deduct my rent on my tax ? i dont own the property i rent but i have my office in this place .

    Alejandra asked 2 months ago
    You can claim an expense incurred in producing assessable income, as long as that expense is not private or capital in nature. Generally paying rent is a private expense and not an allowable deduction. In certain circumstances you may be entitled to claim a deduction for a portion of your rent that directly relates to a part of your home which is used exclusively for your business. Further information on home office expenses for a home-based business can be found on our website.
  • I am receiving income protection and incurring expenses: 1) A therapeutic programme tailored specifically to get me back to my usual occupation and earning income. Can I deduct these expenses? 2) Self-education expenses to maintain and improve my skills in my occupation prior to starting income protection. This should also increase my income in future from the same occupation. Can I deduct these self-education expenses against my income protection payments?

    Matt D asked 3 months ago
    You can claim a deduction for expenses incurred in producing assessable income, so long as these expenses are not capital or private in nature.

    Medical expenses are considered to be private in nature, so you cannot claim your expenses incurred from your therapeutic programme as a deduction.

    Self-education expenses can be claimed if they relate to your current employment and the expense either:
    • maintains or improves the specific skills or knowledge required in your current employment, or
    • results in, or was likely to result in, an increase in your income in your current employment

    If you are incurring these expenses while receiving income protection and not employment income, these expenses are not incurred in relation to your current employment and cannot be deducted. Please see Self-education expenses for more information.
  • Can you claim the cost of a cat in a Milk Bar to control mice etc.

    Harry1 asked 3 months ago
    You can claim a deduction for expenses incurred in producing assessable income, so long as these expenses are not capital or private in nature.

    The costs incurred in maintaining a cat are considered to be private in nature. You cannot claim the expenses incurred in relation to your cat even if that cat assists you in your milk bar.
  • Hello! I’m a subcontractor- every day I pay my own petrol and travel expenses to and between my jobs - however I get this reimbursed back. However - On my weekly payslip it’s under “mobility allowance”. Do I claim this as apart of my income?

    Astoria asked 3 months ago
    As your allowance appears on your payslips, you will need to declare it as part of your taxable income.

    You may be entitled to claim certain deductions for vehicle and travel expenses. Please refer to Vehicle and travel expenses to see if you are eligible and what you will need to claim these deductions.
  • Can a coach of a professional rugby team claim for team bonding events as a work related deduction? The team knowing each other better in stressful situations (for example skydiving) enables them to be more cohesive and therefore play better as a team which in turn helps them to perform better which in turn means the coach is more likely to receive performance bonuses (income) from the employer (specifically written into the employment contract).

    Lisa12 asked 3 months ago

    You can claim a deduction for expenses incurred in relation to producing assessable income, so long as those expenses are not private or capital in nature.

    If you are incurring these expenses outside of your employment, i.e. your employer is not paying you to specifically attend these events, they are considered private in nature and cannot be deducted.

    If you are receiving payment by your employer to attend these events, the expenses may be considered to be incurred in relation to you producing your assessable income. If this is the case you are only able to claim a deduction for your own expenses in relation to attending these events such as the fees for skydiving, you cannot claim other expenses such as food and drink as they are considered private in nature. If you intend to claim these deductions, you will need to substantiate your claims, so ensure you keep records of expenses you incurred, as well as evidence that your employer paid and required you to attend these events. You cannot claim a deduction for expenses which were reimbursed to you by your employer.

  • Hello, my Doctor told me to ask if costs of Weight loss surgery can be claimed as a Tax Deduction? "The net medical expenses tax offset will cease after the 2018-19 tax year. Currently you can claim a net medical expenses tax offset in relation to expenses incurred for: disability aids attendant care aged care." I am self funding and will be paying approx $16000. The Doctor thought this might be eligible for the 20% tax free bracket when spending over $2000 in medical costs? Could you please clarify? Thanks

    Jade Jade asked 3 months ago

    The Net Medical Expenses Tax Offset is currently only available for:

    •  disability aids,

    •  attendant care, or

    •  aged care

    As your surgery does not fall into any of these categories, you are not eligible for the Net Medical Expense Tax Offset.

    You are also not eligible for a deduction for these expenses. You can only claim a deduction for an expense incurred in producing assessable income, provided that expense is not capital or private in nature. Medical expenses are considered to be private in nature so you are unable to claim your weight loss surgery as a tax deduction.

  • Hi I am a grazier, I sell beef cattle and operate in a partnership with my dad, my occupation requires a lot of heavy manual labour and I need regular chiropractor massage etc to maintain a healthy body, I have private health but the gap cost is quite significant, can I claim any of this? My wife is studying to be s personal trainer, in that line of work she will also need ongoing medical help, what can we do?

    dan11998822 asked 3 months ago
    You can claim a deduction for an expense you incur in relation to producing assessable income, so long as that expense is not private or capital in nature.

    Medical expenses are considered to be private in nature. You cannot claim a deduction for your chiropractic or other medical expenses. Your wife will also be unable to claim any medical expenses as a deduction once she commences work as a personal trainer.
  • Hi, I just wanted to confirm if I am eligible for deductions on self-education expenses as I have heard varying opinions. I am currently studying a Bachelor or Accounting and Economics while also working in an accounting firm as an auditor. The units I study are helping build knowledge directly related to my job and will give me an increased income when I graduate. Is Bachelor degrees too general for me to claim it as a self education expense even though personally, it is helping me with my work directly? The deductions would include my tuition fees as I am not on HECS.

    Brian Hwang asked 3 months ago
    Self-education expenses are deductible when the course you undertake leads to a formal qualification and meets the following conditions.

    The course must have a sufficient connection to your current employment and:
    • maintains or improves the specific skills or knowledge you require in your current employment, or
    • results in, or is likely to result in, an increase in your income from your current employment.
    You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it:
    • might be generally related to it, or
    • enables you to get new employment.
    As you are currently an auditor in an accounting firm there is a sufficient connection between you studying accounting and your current employment. However, this connection is not as apparent for your economics degree. You will need further evidence to substantiate that your economics study directly relate to your current employment if you intend to claim self-education expenses.

    You will only be able to claim expenses if they are incurred after you commenced your employment, so if you started your study prior to your employment commencing and paid course fees, then you are unable to claim these expenses. For more information, and a list of expenses you may be entitled to claim please see Self-education expenses.
  • I am a performer and I have been using Uber as my primary mode of transport to and from work (gigs). I am wondering how much of these expenses I can claim as a tax deduction? Thanks, Hugo

    Hugo asked 3 months ago
    You can claim an expense incurred in producing assessable income, as long as that expense is not private or capital in nature.

    Travel expenses incurred in travelling from home to work are considered private in nature, and you cannot claim a deduction for them.

    If you are required to travel from one performance location to another performance location (but not home), you may be able to claim travel expenses in regards to that trip. If you are claiming travel expenses, you are required to keep records to substantiate your claims. Please see Travel expenses for more information.
  • Hi. I drive trucks in a mine and incurred an injury at work about 9 years ago. I need ongoing Physiotherapy to enable to continue working. Can I claim Physio treatments? Also wondering if sleeping tablets for nightshift work are claimable? Kind regards

    Lyn2018 asked 3 months ago
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or domestic in nature.

    Generally medical expenses, such as physiotherapy and sleeping tablets, are considered private in nature and therefore are not tax deductible.
  • If I train to become a kinesiologist his year, can I claim for my education fees incurred during the training in future years tax refunds when I am qualified as a kinesiologist, or can they only be used in the same year as they are incurred?

    Zoefarrell asked 3 months ago
    You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment, even though it might be generally related to it; or enables you to seek new employment opportunities.

    Generally you can claim deductions for eligible expenses you incurred in the year you incur them. However, in some circumstances, you can deduct an amount for the decline in value for depreciating assets costing $300 or more over the effective life of the assets.
  • My son is receiving speech therapy and occupational therapy but has not been diagnosed as yet can I claim these expenses.

    Kim McDonald asked 3 months ago
    The net medical expenses tax offset will cease after the 2018-19 tax year. Currently you can claim a net medical expenses tax offset in relation to expenses incurred for:
    • disability aids
    • attendant care
    • aged care.

    As your son’s expenses on speech therapy and occupational therapy do not fall into any of the categories listed above, they cannot be claimed.
  • My client is receiving income protection part of the requirment to receive the payment is frequent Gp and Psych app. This promotes getting back i to the work force are these medical exp deductible not as a rebate as an outright deduction

    ABCD asked 3 months ago
    Deductions can be claimed for expenses incurred in producing assessable income as long as those expenses are not capital or private in nature.

    Medical expenses are considered to be private in nature and are generally not deductible. The fact that it may be a requirement of the income protection policy does not change the nature of the expense. The costs of the GP and Psych appointments are not deductible.

    If your client undertakes travel solely to acquire a medical report from their medical practitioner, as required by the insurance company, (that is, no actual medical treatment is received), then they may be entitled to claim travel expenses incurred in relation to those appointments.

    Your client cannot claim a net medical expenses tax offset for general medical expenses, as it is now restricted to disability aids, attendant care or aged care. Please see Medical expenses for more information.

    Additional Information:
    Ok so just to clarify, even if the doctor is required to fill in an attending doctor certificate that then needs to be lodged with the Income protection company on a mthly basis.
    Does the nature of the medical exp still remain private in nature?

    ATO Response:
    Medical expenses are considered to be private in nature.

    A medical certificate is incidental to receiving treatment/assessment from a doctor. If you client is obtaining medical certificates, even if they are then providing them to their insurance provider, this would be a private expense.

    If the sole purpose of going to the doctor is get a medical report (not a medical certificate) for income protection requirements and your client is not receiving any additional care or treatment from these monthly visits, then it may be considered an expense in relation to earning their assessable income and may be deductible. However if your client is receiving any kind of medical treatment even if a reason for attending the doctors is to fulfil income protection policy requirements, then it will be considered a private expense and not deductible.
  • Hi there, My wife and I bought a car in 2014. The car is under my wife's name. 2016 I used the car to drive uber. Can either my wife or I claim car deppreciation ? Please advice. Thanks very much

    Lucas Yii asked 3 months ago
    You can claim expenses for the decline in value of a car you own as a deduction when you use that car to produce assessable income.

    If the car is registered by your wife, you may still be treated as ‘owning the car’ if you can demonstrate that there is a family arrangement, requiring you to show and you incur all the running and maintenance of the car. Please ensure you have records of all these expenses you have incurred. If you cannot demonstrate a family arrangement, you cannot claim the depreciation of the car.

    If you have maintained a logbook, and can demonstrate that you have a family arrangement, you can claim a portion of the depreciation as a deduction based on business use. If you are claiming a deduction for car expenses using the cents per kilometre method, you cannot claim additional depreciation as this is already factored into the cents per kilometre calculation.

    Your wife cannot claim the depreciation unless she is using the car to produce her own assessable income.

    Please refer to Car expenses for more information on family arrangements, and how to claim depreciation on a car as a deduction.
  • Hi, I'm a childcare educator and I paid for the immunization required by NHMRC. Can I claim those expenses? Thanks.

    Ying asked 3 months ago
    Deductions can be claimed for expenses incurred in producing assessable income as long as those expenses are not capital or private in nature.

    Medical expenses are considered to be private in nature and are generally not deductible. You are unable to claim your immunizations as a deduction even if it is a prerequisite for your employment.
  • As i work full time in a Hotel and i also do 3-4 days of Uber eats in the evening, how would my tax be calculated? When filing my Tax Returns at the end of financial year what procedure do i need to follow and what documents do i need to provide to the ATO. Do i get any tax benefits doing Uber Eats? Thank you.

    Shrihari asked 3 months ago
    Your assessable income will include your wages from your hotel job and your earnings from Uber Eats. If you are lodging your tax return online through myGov, some information may be pre-filled.

    Deductions can be claimed for expenses incurred in producing assessable income as long as those expenses are not capital or private in nature. If you are claiming a deduction, you will need to keep records of these expenses in case you are required to prove them to us at a later date.

    You may be entitled to certain deductions for income earned from Uber Eats such as car expenses. Please go to Car expenses to see how to claim these deductions and to see what kind of records you will need.
  • Can I claim the $80.00 I spent to apply a work with children check number? I am currently a child care educator. Thanks Ying

    Ying asked 3 months ago
    An expense may be claimed to the extent that it was incurred in gaining or producing your assessable income. It also must not have a capital, private or domestic nature.

    The cost of your work with children check will be deductible provided it is a requirement of your existing employment as a child care educator, and your employer has not reimbursed you for it.

    Expenses incurred to gain work are not allowable deductions as the money has been spent before you started earning income from the job to which they relate.
  • Hi, I was wanting to take on extra work that is 180km away from where i live. This would all be done through my current employer who would be paying me. My question is, can I claim food and travel while I stay away as this is my choice to stay away rather than travelling 360km a day? He won’t be giving me extra money to cover these expenses. Plus is it ok that I stay with a friend rather than paying for accommodation? Thanks in advance.

    DAZZA101 asked 3 months ago
    Generally, meals are considered to be a private living expense and are not deductible. As you have chosen to take on extra work and travel 180km away from where you live it is considered a private expense and therefore you are not able to claim meals expenses as a deduction. Likewise, transport costs you incur in travelling between home and 180km’s away would not be deductible as the travel is from your home to a second workplace and is preliminary to the work.

    For an employee to be able to claim a deduction for accommodation expenses, the expenses must be incurred in travelling in the course of doing their work. In the circumstances described your costs of staying with a friend 180km away from where you live are considered a private expense and therefore not deductible. They are a cost that is preliminary to you wanting to take on extra work and are not deductible.

    More detailed information about claiming meal expenses while travelling away from home for work can be found on our website.
  • If I buy a massage machine ($100) to improve my health condition, as I sit in front of my computer all day long. It is not a prescribe thing from the doctor. I do bring it to work on a regular basis can I claim this as a deduction.

    Thao asked 3 months ago
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or domestic in nature.

    Generally medical expenses are considered private in nature and do not have a direct connection to the gaining or producing of assessable income. A deduction would not generally be allowed.
  • Hi, can you please explain how the new depreciation rules for investment properties apply to my situation. I purchased a unit in late 2013. When I purchased it, the tenant renting the property was meant to vacate prior to settlement, but I ended up agreeing to let them stay on for a short period after I took ownership (only for about a week or so). I had to declare the rental income from this short period on my tax return in the 2013/2014 FY. After the tenant moved out, I moved into the property and I have remained in the property ever since. Now, I am considering moving out and renting the property out (in either June or July this year). If I rent my property out, will I be able to claim a deduction for the depreciation of the plant and equipment? I am having trouble understanding how the information on the ATO website applies to my situation. Thank you.

    MZ asked 3 months ago
    You cannot claim depreciation deductions for plant and equipment in a property that is to be treated as a rental premises if you have already used these assets for private purposes before using them to gain or produce income as part of your rental property.

    Where plant and equipment has been used (or installed ready for use) for domestic purposes during an income year in which the premises has been your residence, the assets are ‘previously used’ for private purposes. Income tax deductions for the decline in value of the previously used plant and equipment are not allowed in the rental premises.

    Where you purchase new plant and equipment for your property, and that new plant and equipment is to be used solely to earn income as part of the rental premises, you will be able to claim a deduction over the effective life of that new plant and equipment.

    For further information, refer to our page explaining the change to Depreciating Assets under the heading ‘Depreciating assets in an existing rental property purchased at or after 7.30pm on 9 May 2017’, including the examples provided under that heading.
  • Hi I have had to travel internationally for work and pay for a dog sitter for my dog as there is no option for someone to take her in. For tomorrow up until the 22 may its costing $1200. Is this something I can claim as a work travel expense? My employer won't lay for it even though I am away in manila for work for 3 months. Thanks!

    Jkirj asked 3 months ago
    You can claim expenses you incur in relation to producing assessable income where those expenses are not private or capital in nature.

    Your expense incurred for the care of your pet is considered to be private in nature and cannot be claimed as a deduction.
  • Hello , Is child support tax deductible / reduce taxable income ?

    James27 asked 3 months ago
    Child support payments you make cannot be claimed as a deduction, and do not reduce your taxable income.

    However any child support payments you make may be deducted from your ‘adjusted tax income’ to determine your eligibility for other offsets, such as the low income tax offset. Please see Income Tests for more information on how we calculate eligibility for tax offsets.

    Child support payments received do not need to be declared, and are not included in the recipient’s assessable income.
  • I have recently started some qualifications at Uni, which are directly related to my employment, this further study will open more employment opportunities in the future. However I have qualified for HELP fees, so I wonder whether I am able to claim deductions on these fees in the future? How would I know I have started paying off those specific fees to be able to claim them?

    SoHarvey asked 3 months ago
    You are able to claim deductions for self-education expenses as long as your course relates to your current employment, and is not to enable you to seek new employment opportunities.

    You cannot claim a deduction for course fees paid through a HECS-HELP loan. You may be entitled to some deductions depending on the type of HELP loan you are receiving. Please see Education and Study to determine your eligibility to claim when receiving a HELP loan.

    You cannot claim the repayment of your HELP loan as a deduction.

    As you are attending a university, you may be required to reduce your total deductions by $250.

    To determine whether you are eligible to claim any self-education expenses, to see whether you need to reduce your claim by $250 and to see a list of eligible deductions, please refer to self-education expenses.
  • I have applied for a PR Visa (186 subclass), and I live currently in Australia; I would like to know if the expenses for the Visa Helth Examination (Bupa) can be claimed as a deduction for tax purposes considering that it can't be with Medicare or private insurance.

    Attilio asked 3 months ago
    You can only claim deductions for expenses related to producing assessable income, where those expenses are not private or capital in nature.

    Medical expenses are generally considered to be private in nature. As your health examination was for your Visa application, which may place you in a position to earn income in the future, it was not an expense incurred directly in producing your current assessable income. Consequently you cannot deduct the cost of the examination.
  • I was filling in the MyDeductions in the ATO App and made a keystroke error when entering kilometres Is there some way that I can correct this? I entered a 4 instead of a 2 at 28000 km which became 48000 This was to be my official logbook Please help Thanks Gary

    Gary Minch asked 3 months ago
    You can alter a record in a logbook if it’s still open. On the myDeductions home screen select “Travelled” records. Select the relevant vehicle to display your list of trips. Then select the trip you want to adjust to update the record. Select “save” and you’re done.
  • can i claim travel expenses for short term contract work that i do at fraser island queensland where my employer pays for the air fare from brisbane to fraser island , and i fly to brisbane from melbourne at my expense, can i claim the travel costs from melb to brisbane? i am required to work for 3 to 5 days then there may be a break for a day or two and i start another shift , can i claim the meals and accommodation in between contract that last for two or three days and it does not pay me to make my way back to melbourne from brisbane ? thank you

    demosthenes asked 3 months ago
    You can claim a deduction for an expense incurred in producing assessable income where that expense is not private or capital in nature.

    You can claim travel expenses for your airfares from Melbourne to Brisbane only if your usual place of employment for this employer is in or around Melbourne, and your employer requires you to leave this usual place of work for duties performed on Fraser Island.

    If your employment duties only commences once you arrive on Fraser Island, then you are unable to claim airfare expenses, as these expenses are incurred before you start producing assessable income.

    You can only claim expenses for travelling away from home if all of the following apply:
    • you declare any travel allowance you receive as income on your tax return
    • you are required as part of your employment duties to travel away from home
    • you are only working away from home for relatively short periods of time (you are not living away from home)
    • you did not incur the expenses because of a choice you made to maintain your residence in a different location to your place of employment
    • you have a permanent home at a location away from the work location to which you are travelling
    • you pay for the accommodation yourself and are not reimbursed for the costs you incur.

    This also requires that your usual place of employment for this employer is in or around Melbourne, and that your employer is requiring you to leave your usual place of employment in Melbourne to perform duties on Fraser Island.

    Even if you can demonstrate the above factors your meals and accommodation during the break between shifts are private expenses and you are not able to claim them as a deduction.

    Please refer to Accommodation allowances and expenses when travelling away from home for work for further information.
  • We have holiday rental. Which of the following are deductible expenses while the property is available for letting please and which tax question input field will relate to them if applicable please? - internet service? - electricity? - gas? - water? - cleaning? - Council Rates? - linen replacement? - gardening? - advertising fees? - investment loan interest? - asbestos removal (this financial year only / now complete)? - painting/patching repair work? - consumables (complimentary bundles: toilet paper, paper towels, tea, coffee) - appliance replace/repair? - light bulb replace? - other (is there a comprehensive list somewhere already)? - If I make a loss in a financial year (hopefully just the first year if any) can I carry that forward to the next financial year? I am familiar with long term residential renting but want to check/understand any/all differences for short-term holiday letting. Thanks, Andrew

    AndrewG asked 4 months ago
    Many of the same rules for expenses apply for both residential rentals and holiday rentals. The main difference between a long term rental and a holiday rental is whether your holiday home is genuinely available for rent. This requires you to substantiate that your property has a genuine purpose for producing assessable income before we can determine if expenses are allowed. See Holiday Homes for more information.

    As holiday rental income is only for part of the year, the deductions you can claim must be apportioned to the percentage of time the property is used to produce rent. For example, if the property is rented out or genuinely available for rent for six months in the year, you can apportion 50% (6/12 months) of the eligible expenses as a deduction. Please refer to Expenses you can claim for more information about how to apportion expenses.

    The types of expenses you may be entitled to generally relate to the management and maintenance of the rental property, which can include interest. There is a list of expenses available at Expenses deductible immediately – management, maintenance, interest. This covers most of the items in your question.

    In regards to the asbestos removal, deductions may be allowable depending on your circumstances. Please go to Asbestos-affected properties to determine if you are eligible.

    Consumables are generally not deductible as they are not related to the management and maintenance of the property, and are not directly linked to the earning of your rental income.

    Replacing appliances is a capital expense and is not able to be claimed as an immediate deduction. However, you may be able to claim a portion of the depreciation of those appliances over a few years.
    Please refer to Expenses deductible over several years – borrowing, depreciation, capital works.

    You can only carry forward a loss if your net rental income after deducting your allowable rental expenses is less than the apportioned interest on your borrowings, see Negative Gearing for further information.

    Additional information or question:
    RE Consumables:
    I mean thing like toilet paper, Linen …. these things are necessary to earning an income by attracting and retaining clientele in what I am referring to a holiday rental.It would be the same for a hotel. We will operate 12 months of the year as we are in Cairns and it is the largest private industry sector here so perhaps I’m using incorrect terminology … does “short term accomodation” or another term better fit a 12months of the year operation?

    Thank you very much for your assistance. Everything else is clear and helpful.

    Respectfully, Andrew

    ATO Response:
    If your property is not utilised for private use, you may be able to claim expenses for consumables in relation to short term accommodation available on a genuine commercial basis.

    If your short term accommodation is consistent, and the property is genuinely available for rent or being rented out, you are able to apportion a deduction for consumables such as toilet paper and linen for the periods you can demonstrate the property is producing income for short term accommodation. You may need to substantiate how you have apportioned such expenses to us, so keep records of all your expenses and the times your property is rented out. For more information on apportionment please refer to Holiday Homes.
  • I'm just wondering whether the accommodation expenses incurred to earn an income deductible or not. Your website (as shown below) says in order to claim work related expenses employee needs to meet the expense criteria of (a) spent the money - "Yes, as rent for accommodation and not re-reimbursed by employer" (b) directly related to earning of income - "Yes, otherwise there is no need to get accommodation in Canberra from the family residence in Sydney" (c) record to prove it - "Yes, payment to the land lord fortnightly". Please explain the ruling regarding the accommodating expenses in order to earn an income.

    MWJ asked 3 months ago
    You can claim a deduction for expenses incurred in producing assessable income where those expenses are not private or capital in nature.

    Generally paying rent is a private expense and not an allowable deduction. There are exceptions when you are required to incur accommodation expenses in relation to your employment.

    In order to claim accommodation expenses you must satisfy all of the following criteria:
    • you declare any travel allowance you receive as income on your tax return
    • you are required as part of your employment duties to travel away from home
    • you are only working away from home for relatively short periods of time (you are not living away from home)
    • you did not incur the expenses because of a choice you made to maintain your residence in a different location to your place of employment
    • you have a permanent home at a location away from the work location to which you are travelling
    • you pay for the accommodation yourself and are not reimbursed for the costs you incur.

    If you can establish all of the above factors, then you may claim for your accommodation expenses. Please refer to Accommodation allowances and expenses when travelling away from home for work for further information.
  • When I relocated back to Australia my work asked me to spend a few months based in their Sydney office, even though my permanent location would be Melbourne. They agreed to pay the accommodation costs, but included it into my job contract as a relocation cost, with the condition that if I leave the company I need to pay back the relocation costs. If I did have to re-pay the accommodation costs, would I be able to claim this as a tax deduction given it wasn't my choice to work in Sydney?

    traveller asked 3 months ago
    You can claim a deduction for an expense incurred in producing assessable income where that expense is not private or capital in nature.

    You can only claim expenses for accommodation if all of the following apply:
    • you declare any travel allowance you receive as income on your tax return
    • you are required as part of your employment duties to travel away from home
    • you are only working away from home for relatively short periods of time (you are not living away from home)
    • you did not incur the expenses because of a choice you made to maintain your residence in a different location to your place of employment
    • you have a permanent home at a location away from the work location to which you are travelling
    • you pay for the accommodation yourself and are not reimbursed for the costs you incur.

    In order to be able to claim accommodation expenses you will need to be able to demonstrate that you had a permanent home away from Sydney immediately prior to your relocation to the Sydney office, and that you were required to move from this residence as part of your employment. You must have also commenced your employment duties prior to you moving to Sydney or your expenses will be considered private and not a deduction.

    If you were required to pay back the relocation costs upon leaving the company, you may be able to claim your expenses up until that date if you can establish all of the above factors. Ensure you keep records of all expenses you incurred and a copy of your contract requiring you to relocate as part of your employment to determine whether you can substantiate your claim.

    Please refer to Accommodation allowances and expenses when travelling away from home for work for further information.
  • I'm from Sydney but working in Canberra. In order to earn my wages / income I have to rent a room in Canberra. Can I deduct the room rent that I pay to earn my income? Simply without paying the rent I won't be able to earn my income.My family and children are in Sydney and I travel back to Sydney on Friday. I'm asking here about accommodation expenses not travel expenses.

    MWJ asked 3 months ago
    You can claim a deduction for an expense incurred in producing assessable income where that expense is not private or capital in nature.

    You can only claim expenses for accommodation if all of the following apply:
    • you declare any travel allowance you receive as income on your tax return
    • you are required as part of your employment duties to travel away from home
    • you are only working away from home for relatively short periods of time (you are not living away from home)
    • you did not incur the expenses because of a choice you made to maintain your residence in a different location to your place of employment
    • you have a permanent home at a location away from the work location to which you are travelling
    • you pay for the accommodation yourself and are not reimbursed for the costs you incur.

    If you can establish all of the above factors, then you may claim for your accommodation expenses. Please refer to Accommodation allowances and expenses when travelling away from home for work for further information.
  • How do I enter in donations into the ATO app my deductions? I can only see how to enter expenses and other work related expenses

    RW asked 4 months ago
    This is a Personalisation issue. The following explains how to enter donations into myDeductions.

    On the first time opening the myDeductions tool, you will be asked to personalise how you would like to use it. You will be presented with three toggle buttons to set up the tool to record a combination of employee, general and/ or business (sole trader) records.

    After you have completed this process, you can change which records you’d like to record at any time by pressing ‘Settings’, and then ‘Personalisation’.

    To be able to record Gifts or donations, toggle ‘Yes’ to the question ‘I would like to record general expenses’.

    Enabling general expenses will allow you to record the following expenses:
    • gifts or donations
    • the cost of managing tax affairs
    • interest deductions
    • dividend deductions
    • other deductions.
  • I drive my wife's car as an Uber driver and derive a part time income from the Uber driving. My name is listed on the vehicle insurance as a co driver and therefore I'm allowed to drive the car for Uber. I keep a log book of all the car's driving activities and I have an ABN and GST registration. Am I allowed to claim car expenses when doing my BAS and GST? eg, fuel costs, car insurance costs, car maintenance and repairs? I pay for these expenses but wife is the car owner.

    TonyIV asked 4 months ago
    If both you and your wife are registered as Uber drivers in accordance with Uber’s terms and conditions, then you should have a breakdown of which driver has earned the income for each trip, and are able to claim deductions for car expenses you incur in relation to your Uber driving activities.

    The income you earn from your ride-sourcing activities is assessable income and must be reported in your income tax return. This applies even if you operate your ride-sourcing activities on a casual basis to supplement your income from another job or other business activities.

    You can claim a deduction for using a car that you own for income producing purposes. If you and your wife treat the car that she owns as a joint asset you can claim deductions for that car that relate to your income earning activities as a Uber driver. If you and your wife use the car for both personal purposes and in transporting Uber passengers you will need to apportion any car expenses between each of your activities and your personal use. You can’t claim the personal component.

    To claim deductions, such as car expenses:
    • you must have spent the money yourself and weren't reimbursed
    • it must be directly related to earning your income from transporting Uber passengers
    • you must have a record to prove it.

    One of the easiest ways you can keep records for your ride-sourcing activities is by using the ATOapp myDeductions tool. You can:
    • include income from ride-sourcing activities and say how much GST is included
    • take a photo of receipts and enter details
    • indicate that a percentage is for private use
    • use the 'Add trip' function as your logbook.

    As you have GST registration for your ride-sourcing enterprise you must pay GST on the full fare and you can only claim GST credits related to transporting passengers for a fare.

    Further information is available on our website under Car expenses and Ride-sourcing and tax.
  • Can a medical expense claim be made for someone receiving domestic services for a minor mobility issue. Also What about Doctors fees with someone that has a long standing ailment. Thanks Samantha

    Samantha28 asked 4 months ago
    You may claim expenses to the extent that it was incurred in gaining or producing your assessable income, and that expense must not have a capital, private or domestic nature.

    Medical expenses are considered to be of a private nature and cannot be claimed as a deduction.

    You cannot claim a net medical expenses tax offset for general medical expenses, as it is now restricted to disability aids, attendant care or aged care. Please see Medical expenses for more information.
  • Hi, I'm an Civil Engineer. I had to move to a site based job for 4 months. I am using my personal vehicle for travelling to the site from home every day. The employer pays for the kilometres I travel within the site. Can I claim the travel Kilometers from Home to site as a tax deduction? I'm keeping a log book with all the details. I'm only entering the travel within the site in the log book. Just wanted to check whether I am eligible to claim travel from home. I will be returning back to the office after this four months.

    wuds asked 4 months ago
    You can claim a deduction for an expense incurred in producing assessable income where that expense is not private or capital in nature.

    Generally travel between home and your place of work is considered to be a private expense and cannot be claimed as a deduction. Please see Travel between home and work and between workplaces for more information on what you may be entitled to claim.
  • I have started a partnership with my husband, at this stage I'm doing the book keeping, we eventually want to expand and become a company, I want to do a book keeping course and would like to know if I can claim the course fee and extras through the partnership.

    hemmo asked 4 months ago
    Yes a deduction can be claimed for the cost of your book keeping course fees.

    The partnership can claim a deduction for your self-education expenses if it reimburses you for these expenses. Alternatively, you can claim a deduction for these expenses against your share of the partnership income because these costs have a sufficient connection to your current bookkeeping work in the partnership.

    If you require further information, Taxation Ruling TR 98/9 explains the ATO view on the deductibility of self-education expenses incurred by an employee or a person in business.
  • Hello , I am in the health industry (Nurse) and I want to complete a diploma in massage therapy ( allied Heath) I'm just wondering if I am able to get any tax deductions from paying the course fee ?

    James27 asked 4 months ago
    You can claim a deduction for self-education expenses if the study:
    • maintains or improves the specific skills you require in your current employment (ie. as a nurse), or
    • will result in, or is likely to result in, an increase in your income in your current employment (as a nurse).

    You cannot claim a deduction simply because your course might have a general connection to your employment, or if it is to enable you to get employment in a different field – even if the field is similar to your current one.

    While there are some skills and knowledge that are common across nursing and massage therapy, ie. anatomy and physiology, a Diploma in massage it is not sufficiently related to your current employment as a nurse for the study costs to be deductible.

    For further information please go to Self-education expenses.
  • My daughter is unable to drive for six months due to a recent possible seizure, can she claim a tax deduction for using a Uber service to and from work?

    DiB asked 4 months ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are considered of a private nature. This applies even if your daughter is unable to drive herself to and from work. This means your daughter will not be able to claim a deduction for the cost of the Uber fares to and from work.
  • Uber being my only form of available transport to and from work are those rides deductible ?? Thanks

    JAAATO asked 4 months ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are also of a private nature. This applies even if this is your only available transport to and from work. This means you will not be able to claim the cost of your Uber fares to work.
  • Hi if I dont claim deductions in a tax year but did incur them, am I able to claim them in the next tax year. Such as gift/donations?

    Rome asked 4 months ago
    A tax deduction for most gifts/donations is claimed in the tax return for the income year in which the gift is made.

    This means you can only deduct expenses in the year that you paid for them. Deductions from a previous year cannot be claimed with the current year's tax information.

    If you've made a mistake on an income tax return you've already lodged, you can request an amendment to your income tax assessment.

    Refer to https://www.ato.gov.au/general/correct-a-mistake-or-amend-a-return/correct-(amend)-an-income-tax-return/
  • Can I claim personal super contribution as a tax deduction ?

    James27 asked 4 months ago
    You may be able to claim a tax deduction for personal contributions you make to your superannuation (super).

    This includes people who get their income from:
    • salary and wages
    • a personal business (for example, self-employment)
    • investments (including interest, dividends, rent and capital gains)
    • government pensions or allowances
    • super
    • partnership or trust distributions
    • a foreign source.

    You are eligible to claim a deduction for personal super contributions if:
    • contributions made prior to 1 July 2017 were made to a complying super fund or a retirement savings account (we'll refer to both as 'your fund')
    • for contributions made on or after 1 July 2017, you made the contributions to your fund that was not a
      • Commonwealth public sector superannuation scheme in which you have a defined benefit interest
      • Constitutionally protected fund or other untaxed fund that would not include your contribution in its assessable income
      • super fund that notified the Commissioner before the start of the income year that they elected to either treat all member contributions to the
        • super fund as non-deductible
        • defined benefit interest within the fund as non-deductible
    • for contributions made prior to 1 July 2017 your earnings as an employee were less than the maximum allowed
    • you meet the age restrictions
    • you have notified your fund of the amount you intend to claim as a deduction
    • your fund has acknowledged your notice of intent to claim a deduction.

    Refer to https://www.ato.gov.au/Individuals/Super/In-detail/Growing/Claiming-deductions-for-personal-super-contributions/
  • I am about to be engaged for short term work (6 days) as a one off job through labour hire and I am being bought on as an independent contractor with labour hire paying super/PAYG etc. The job involves flying interstate to get to the place of work. Can I claim the cost of travel as this is a one off and not an ongoing engagement? I believe as a Sole Trader I would have been able to, however I can only be engaged the way I am unless I am a Pty Ltd company.

    NickJH asked 4 months ago
    You can only claim expenses incurred in relation to you producing assessable income, and those expenses are not capital or private in nature.

    You are an employee of the labour hire firm, and not an independent contractor for income tax purposes relating to this short term work.

    Travel between home and work is generally considered to be a private expense. You can only claim these expenses if your work commences before you leave home. If your employment duties commence only once you travel interstate and not prior to your travel, you cannot claim a deduction for travel expenses as you are not earning assessable income at the time the cost is incurred.
  • Hi, I am a physiotherapist. I run my own small business at home. I need rigid tape to provide the appropriate treatment to some of my clients. Can I claim the tape as a tax deduction? Thank you, Isabella

    Isabella asked 4 months ago
    You can claim a deduction for expenses you incur in producing assessable income, and those expenses are not capital or private in nature.

    As the rigid tape is used in in connection to your role as a physiotherapist, it can be deducted. Please ensure you keep accurate records of your expense in case you are required to substantiate your claims to us.
  • I work as an Uber and taxi driver only at the weekends. However, my brother who has ABN and driver license use my car for Uber on weekdays. In other words, we have a same car and same account. I receive his weekly income from Uber on my bank account and send it to my brother. Thus,Can i deduct my brother’s income from my income tax? In additon, My brother pay his income tax seperately as well./ Like subcontractor /. Thank you

    tulgaa asked 4 months ago
    If both you and your brother are registered as Uber drivers in accordance with the terms and conditions of Uber, then you should have a breakdown of which driver has earned the income for each trip, despite the amounts going to the same bank account. Please contact Uber to get this breakdown.

    If you cannot get a breakdown from Uber but can substantiate the difference in which periods each of you earned income, then you would only declare the income you earned from your Uber and taxi driving activities. Your brother will need to declare the income he earned from your Uber and taxi driving activities on his own tax return.

    If you cannot substantiate the different periods that you were driving from your brother’s, you will need to declare all the income received from your Uber account. As an Uber driver you cannot delegate your duties to your brother as a subcontractor, you cannot claim a deduction for the amounts you pay to your brother. As consequence all of the income earned from both your and your brother’s Uber and taxi driving activities is your assessable income.

    You are only able to claim deductions for expenses you have incurred. You cannot claim a deduction for those expenses incurred by your brother. See Car expenses for more information.
  • I work in retail where I am permanently employed on a full time basis. Recently I was deployed to another store for a period of 5 weeks. Attending this deployment required driving a far great distance each day to and from this store than I would normally do when attending my regular work place. Can I claim a tax deduction on the travel expense I incurred during this temporary deployment.

    Blue asked 4 months ago
    You cannot claim a deduction for the cost of travelling between home to work as this is a private expense. The fact that you had to travel to a different store temporarily does not change the nature of the expense. If you were required to travel between the two stores you may be able to claim a deduction. Please see Vehicle and travel expenses for further information.
  • Sometimes I use my own car for work purposes. My employer reimburses me as a travel allowance, which appears in my group certificate as a taxable allowance. Why do I need to pay tax on this?

    Ammannb asked 4 months ago
    Your assessable income includes all employment income. This includes allowances you receive as an employee

    See Employment income for more information.

    If you incur car expenses in the course of performing your employment duties, you can claim a deduction for these expenses. Any deduction reduces your taxable income and therefore offsets the amount of income you received as an allowance.

    Please go to Car expenses to see if you can claim a deduction for work related car expenses.
  • Are study expenses for a bachelor of Nursing an allowable deduction for someone working as a Veterinary Nurse

    Julianfrank asked 4 months ago
    You can claim a deduction for self-education expenses if the study:
    • maintains or improves the specific skills you require in your current employment (ie. as a veterinary nurse), or
    • will result in, or is likely to result in, an increase in your income in your current employment (as a veterinary nurse).

    You cannot claim a deduction simply because your course might have a general connection to your employment, or if it is to enable you to get employment in a different field – even if the field is similar to your current one.

    While there are some skills and knowledge that are common across nursing and vet nursing, a Bachelor of Nursing it is not sufficiently related to your current employment as a vet nurse for the study costs to be deductible.

    For further information please go to Self-education expenses. (QC 31970)
  • Hello. I have a question. Can my client claim his Pre-employment medical expense as his deduction in his 2017 ITR?

    Jhen asked 4 months ago
    In order to claim a deduction, the money your client spent must be directly related to earning their income and the expense must not be private or domestic in nature. Expenses incurred to gain work are not allowable deductions as the money has been spent before your client started earning income from the job to which they relate.

    Based on what you have told us the money spent on your client’s medical expenses are considered to be private and are not allowable deductions.
  • can you put union fees into myDeductions

    Dman asked 4 months ago
    Yes, you can record your union fees with myDeductions. To do this, select ‘Add expense’

    Note: If you have set up myDeductions to also record your business expenses, you will then need to toggle ‘Is this transaction for your business’ to ‘No
    Then simply enter in the Amount, date and a brief description of the expense.

    For ‘Expense type’ choose ‘Other work-related’ and for sub-type select ‘Professional fees/subscriptions’. Then press save.
  • I own a property that does not have a mortgage associated with it. To prevent any fraudulent changes to that title I subscribe to Landgate Title Watch (30 AUD p.a.). Is this tax deductible? If so, under what category? Insurance?

    CMO asked 4 months ago
    You can claim a deduction where you have incurred an expense as part of you generating assessable income provided those expenses are not incurred for a private or capital purpose.

    Generally you cannot claim any deductions for property unless that property produces an income such as a rent. However, as your subscription to Landgate Title Watch it is an alert service for your retention of title, it is of a capital nature. Therefore the costs associated with this service are not deductible.

    For more information on what can be claimed as a deduction for rental properties, please go to Expenses you can claim.

    Further information
    Thank you for clarifying. Sorry, I should have mentioned that I live abroad and that the property is an investment property. Does that change the situation?

    Response:
    No, neither living abroad nor the property being an investment property changes the purpose of the subscription to Landgate Title Watch, it is still of a capital nature and therefore not an allowable deduction.

    If you use your investment property for income producing purposes you may be able to claim other deductions, please refer to Expenses you can claim for more information.
  • Can you claim remedial massage if my job is highly physical

    asked 4 months ago
    An expense can be claimed if it is incurred in gaining or producing your assessable income. The expense must not have a capital, private or domestic nature.

    Medical expenses are generally considered to be private in nature. Consequently, your expenses on remedial massage are not allowable deductions.
  • Hello, I work in a noisy open plan office and wish to purchase noise cancelling headphones. Will I be able to claim any/all of this cost as a deduction?

    user54 asked 4 months ago
    You may claim an expense to the extent that it was incurred in gaining or producing your assessable income. The expense must not have a capital, private or domestic nature. For example you can claim a deduction for items that protect you from the risk of injury or illness caused by your work or your work environments. Your expense on noise cancelling headphones is not deductible as the noise in an office environment, generally, is not sufficient to require protective equipment. Consequently, this expense would be considered as a private expense.
  • Am I able to claim travel and cost of conference for work/study if the flight is at a different country (next door) and the flight (travel) tickets have other people's names on it also?

    Bella asked 4 months ago
    To claim a work-related deduction:
    • 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.

    For travel costs to be deductible, it must be part of the necessary cost of your work-related activities and the purpose of the trip must entirely be work-related. If your travel has a personal or study component that is not directly related to work, you must apportion your claim accordingly. You can only claim for a deduction in relation to your portion of the expense. If you have also paid for other people’s flight, for example, family members, that expense will not be deductible.
  • Have hurt my back at work a couple months a go and have had to pay for all my own physio costs and chiropractor costs can I claim in these

    Sean brooks asked 4 months ago
    You may claim expenses to the extent that it was incurred in gaining or producing your assessable income, and that expense must not have a capital, private or domestic nature.

    Medical expenses, such as physiotherapy, are generally considered to be private in nature, and therefore are not tax deductible.
  • I work at a cash-in-transit company as a cash processor. Part of my work sometimes involves unloading and moving armoured trucks, which are MR classified. Can I claim a deduction for a obtaining a medium rigid drivers license and associated training course (~$1,000)?

    Josh6 asked 4 months ago
    You may claim an expense to the extent that it was incurred in gaining or producing your assessable income. The expense must not have a capital, private or domestic nature.

    Your expenses on medium rigid driver’s licence and associated training course are deductible if your employer requires you to obtain this licence as part of your existing employment and your employer does not reimburse you for these expenses. The expenses are not deductible if they were incurred prior to gaining your employment.
  • I am required to travel to a conference for work in Scotland, with the class of travel paid for by the company being Premium Economy. There is no personal travel associated with the trip. I would like to pay the extra amount to fly business class. Is this personal expense a tax deduction for work related travel?

    markl asked 4 months ago
    You may claim expenses to the extent that it was incurred in gaining or producing your assessable income, and that expense must not have a capital, private or domestic nature.

    For airfares to be deductible it must be part of the necessary cost of your work-related activities and the purpose of the trip must entirely be work-related. As your trip has no personal travel component, the costs you incur to upgrade your ticket can be claimed. If your trip has a personal travel component, you must apportion your claim accordingly.
  • What allowable deductions do psychiatrists and forensic Sketch artists get

    Keala Davey asked 4 months ago
    You may claim deductions to the extent they were incurred in gaining or producing your assessable income, and those must not be capital, private or domestic in nature.

    Unfortunately we cannot give you a list of all deductions you may be able to claim, as they are specific to the type of work you do. We do not currently have industry specific deductions for psychiatrists or forensic sketch artists, but any deduction you intend to claim must be incurred in gaining or producing your assessable income.

    For more information on what you may be able to claim as a deduction please go to Deductions you can claim.
  • Can I use mydeductions to claim a depreciating asset (laptop). And if so, how? It is a new laptop, it is used to work from home full time, and I have kept a diary for the required 4 weeks.

    yabbyyabby asked 5 months ago
    Unfortunately you cannot use myDeductions to calculate depreciation. You can use the Depreciation and Capital Allowances Tool (DCAT) in myTax.

    Below is a link to a video you can watch which shows you how to use the DCAT tool in myTax.

    https://www.ato.gov.au/calculators-and-tools/depreciation-and-capital-allowances-tool/

    You can depreciate the whole amount in one year if the laptop is under $300 (and not part of a set). Further information is available through the below link.

    https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/tools,-equipment-and-other-assets/
  • my wife works part time at the post office, she is currently studying cert 3 in floristry with the intention to seek full time work. is the cost of the course an allowable deduction?

    CraigP asked 4 months ago
    You can claim a deduction for self-education expenses that have a sufficient connection to your current work. Self-education can include a formal course or attendance at a seminar. For a course to sufficiently connect to your work:
    • it must maintain or improve the specific skills or knowledge you need in your current work activities
    • it will result in, or is likely to result in, an increase in your income from your current employment.

    Your wife’s current occupation at the post office is not related to her floristry studies, so she would not be entitled to a deduction.
  • I currently studying childcare and a part of being able to do unpaid placement is that I need to get vaccinated these are costing about $300. I am a stay at home parent so i don't normally do a tax return. Can I get any money back as they are a requirement to get employment after I finish the course?

    jess19 asked 4 months ago
    An expense can be claimed if it is incurred in gaining or producing your assessable income. The expense must not have a capital, private or domestic nature.

    In general, medical expenses are considered to be private in nature, though there can be exceptions.

    As your vaccinations were a part of an unpaid placement, this means that you were not receiving assessable income for this work. Consequently there is no relationship between your assessable income and the expense.

    Although your vaccinations may be a requirement for you earning an assessable income in the future, they are not directly incurred as part of earning assessable income at the time you incurred the expense. You are unfortunately not eligible to claim the vaccinations as a deduction.
  • I work away from home on a roster my accomodation is paid for by the company I work for. can I claim meal expenses that I provide for myself and if so do I keep receipts or is there a daily allowance thanks

    Tim emerald asked 4 months ago
    Generally, meals are considered to be a private living expense and are not deductible. However, provided that your travel to the work location is not as a result of a choice you have made about where to live i.e. you have chosen to travel rather than moving to that location, you can claim a tax deduction for meal expenses if:
    • you are required as part of your employment duties to travel away from home overnight
    • you are only working away from home for relatively short periods of time (i.e. you are not living away from home)
    • you have a permanent home at a location away from the work location to which you are travelling, and
    • you paid for the meals yourself and were not reimbursed by your employer for the amount you spent.
    Should your employer provide you with meals in addition to your accommodation then the cost of any meals you purchase in preference to those meals is not deductible.

    To claim a deduction, you are required to keep written evidence to substantiate your costs. However, there is an exception from providing substantiation if you have received an allowance which is paid to cover the cost of your meals while you are travelling for work purposes and the deduction you claim for meal expenses is equal to or less than the amount we consider reasonable. For the 2016-17 income year the amounts that we consider reasonable are found in TD 2016/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2016–17 income year? However, you must only claim the amount you spent and if you have received an allowance, you must declare that amount as income.

    You can view TD 2016/3 as well as more detailed information regarding claiming meal expenses while travelling away from home for work, on our website.
  • My employer provides me with a vehicle and pays for registration, insurance & maintenance. I pay for fuel and use the car for work related trips as a Sales Rep. Can I claim the work related fuel as a deduction?

    Linlee asked 4 months ago
    You may claim expenses to the extent that it was incurred in gaining or producing your assessable income, and that expense must not have a capital, private or domestic nature.

    If you use someone else’s car for work purposes you can claim a tax deduction for the direct costs that you incur on the car, such as fuel expenses, as a travel expense. If you have any private usage of the vehicle, the fuel expenses must be apportioned accordingly.

    For more information regarding private usage and work-related usage of a car, please refer to our website.
  • I am self employed and I have cut myself at work using tools on a job. Can I claim a tax deduction for the trip to the medical clinic as my hand needed stitches as a result of the accident?

    RocketRob asked 4 months ago
    As a sole trader, you can claim a tax deduction for most expenses incurred in running your business as long as they are directly related to earning your assessable income, and not of capital, private or domestic nature.

    Medical expenses are generally considered to be private in nature, and therefore not tax deductible.
  • I started working as a dental assistant three months ago. They needed my immunisation record. So i had to do blood test and get vaccinations which costed me over 500 including gp consultion fee because i do not have medicare. Can this expense be patt of deductions?

    Yeonkyeong Lee asked 5 months ago
    You can claim a deduction for an expense to the extent that it was incurred in gaining or producing your assessable income and that expense is not capital, private or domestic in nature.

    Expenses incurred prior to the commencement of employment are generally not tax deductible because they are incurred too soon to be regarded as ‘incurred in gaining or producing your income’. If you incurred your immunisation expenses prior to starting your employment, you cannot claim a tax deduction for these expenses. However, if your employment had already started and there was a subsequent requirement of your employer to obtain your immunisation records, the expenses will be deductible.
  • How to send info in my deductions to accountant

    Katwiil asked 5 months ago
    Instructions on how to send info in myDeductions to your accountant are available through the below link on ato.gov.au
    https://www.ato.gov.au/General/Online-services/In-detail/myDeductions/myDeductions/?page=2#Information_your_tax_agent_sees

    If your agent would like a copy of your unconsolidated income or expenses you can send them a spreadsheet in CSV format.

    To send a CSV file via email to your agent:
    1. Select ‘Settings’.
    2. Select ‘Share via email’.
    3. Select the financial year you want to share.
    4. Select ‘Share data via email’. This will open your email and you can then input your tax agent's email address and send to them.

    If you want to send photos to your tax agent, you will need to make a backup within the app. The photos will be available in the .zip file that is created.
  • I am a share trader and I run the business under a company. Due to the nature of my work I constantly work on the computer and got wrist injury recently. I am paying lots of money for my treatment. Is this cost a business expense and tax deductible?

    Ruby Riyaz asked 5 months ago
    An expense can be claimed to the extent that it is necessarily incurred in carrying on a business for the purpose of gaining or producing your assessable income. The expense must not have a capital, private or domestic nature.

    Medical expenses are generally considered to be private in nature. Consequently, your expenses are not allowable deductions.
  • I have changed my rego number(Intestate) of the car while I was recording my work-related travel in logbook method. SHould I close the current logbook and start a new one under the new plate?

    wuds asked 5 months ago
    Each logbook you keep is valid for five years and should be representative of the work-related use of your vehicle. You do not need to start a new logbook just because you have changed your vehicle’s number plate. However, if the work-related travel in your logbook is no longer representative of your work-related travel in your new state, you will need to start a new log book.
  • Hi, I am a full-time worker and bought my car through salary sacrifice scheme from my employer (which includes petrol, rego, maintenance etc). I have recently started to drive UBER and my car has been used a lot. So my question is, can I claim tax return for my car maintenance and fuel?

    iamraj648 asked 5 months ago
    To claim work related deductions, such as car expenses:
    • 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.

    You cannot claim any deductions related to running your ride-sourcing services as your car has been acquired through a salary sacrifice arrangement therefore you have not incurred the expenses yourself.
  • hi my wife is in palliative care and can only have food through a peg is the food a deduction I have been told by centrelink to keep all chemist bills and I was wondering about the food formula and the terumo syringes used to feed her

    Chris langton asked 5 months ago
    A person may claim a net medical expenses tax offset in relation to expenses incurred for:
    • an aid for a person with a disability
    • services rendered by a person as an attendant of a person with a disability
    • an aged care provided by an approved provider.

    Unfortunately, as an illness is not a disability, and the expenses are not incurred in obtaining care by an approved provider, the expenses on food formula and the terumo syringes cannot be claimed.
  • My husband has started a job and as a requirement 1 week after commencement they require him to do a police check and medical which has to be paid for by him, can he claim this amount as a deduction?

    Gbutter asked 5 months ago
    An expense may be claimed to the extent that it was incurred in gaining or producing your assessable income. It also must not have a capital, private or domestic nature.

    Your expenses are deductible because you are conducting a police check and medical check as a requirement for an existing employment that you gain or produce your assessable income from, and you have to pay for it.
  • My husband is a self-employed tradie and injured his back at work many years ago, when he was an employee. The employer at the time did not cover his medical expenses nor did it go through workcover. He has had many physical issues related to his back due to that injury (in the same trade). He has to have regular massage/physio on his back to be able to do his job, or his back will seize up and he will be out of action for weeks without that regular maintenance. Can I claim the cost of his physio as a business expense? If he didn't have it he would not be able to earn an income in that trade. Thanks.

    JulesB asked 5 months ago
    As a sole trader, your husband can claim a tax deduction for most expenses he incurs in running his business as long as they are directly related to earning his assessable income, and not of capital, private or domestic nature.

    Medical expenses, such as massages and physiotherapy, are generally considered to be private in nature, and therefore not tax deductible.
  • Hi, I am the director of a pty ltd, i am also currently the only employee. I moved from Victoria to Qld, to work for 2 months while i recover from non-work related injuries. My business base and address is still in Melbourne. What can i claim during my time in Qld? ie: food expenses, travel expenses etc? thanks, nick

    NickL asked 5 months ago
    You can claim a deduction for the expenses you incur in running your business or performing your employment duties as long as they are directly related to earning your income.

    You are unable to claim deductions for expenses you have occurred for private or domestic matters. In your circumstances, you have moved to recover from a non-work related injury, your travel and food expenses are private and are not linked to you gaining or producing income, and so cannot be claimed as a deduction.

    Unfortunately we cannot give you a list of all deductions you may be able to claim, as they are specific to the type of work you do. For more information on what you may be able to claim as a deduction please go to Deductions you can claim.
  • My youngest boy is on the autism spectrum and was wondering if I can claim his therapy as funding has been cut. Not sure what the go is

    dave asked 5 months ago
    Net medical expenses may be claimed if they are incurred for one of the following categories:
    • Disability aids
    • Attendant care
    • Aged care
    A disability aid refers to an instrument, apparatus or device generally recognised to be an aid to the function or capacity of a person with a disability.

    Attendant care expenses relate to services and care provided to a person with certain disabilities to assist with everyday living such as the provision of personal assistance.

    Net medical expense claims are income tested, based on a person’s adjusted taxable income (ATI) and family status.

    If your son’s therapy expenses fall into any of the categories listed above, you may claim the net expenses in your tax return, subject to your adjusted taxable income and family status.
    Our net medical expenses tax offset calculator calculator will help you work out your eligibility for net medical expenses. It will also estimate the amount of offset you are entitled to receive. You cannot claim expenses that do not fall into any of the categories listed above.
  • Can I claim a cost of attending a course that relates to my job but I never ended up attending due to some reasons and the fee I paid was non refundable? Thanks

    TP asked 5 months ago
    A person can claim a deduction for a self-education expense if it meets one of the following criteria:
    • The course maintained or improved a skill or specific knowledge required for work activities at the time, or
    • It can be shown that the course was leading to, or was likely to lead to, increased income from their then current work activities, or
    • Other circumstances existed that established a direct connection between the course and their then current work activities.
    However, the self-education expense must not either:
    • Relate to your current employment or profession only in a general way, or
    • Simply enable you to get new employment.
    Provided that the course meets the requirements above, and you have incurred a fee, the fact that you did not attend the course will not affect your claim.
  • Hello, As part of my job, i use my car daily to drive from the office to other places to conduct property inspections. I have been logging all of my odometer readings for these trips in MyDeductions in the ATO app for the 2017-2018 FY. I have just gone over the 5,000 km maximum for the cents-per-kilometre method. My understanding is that i will need to use the logbook method now. However as part of the logbook method, i will need to record all running expenses from my car, but i have not been doing this as i anticipated to only use the cents-per-kilometre method which i had previously used in the 2016-2017 FY. Do i need to attempt to find all of my previous transactions/receipts for car expenses for this FY, and enter these into the app for all of the driving i've already done? Or do my first 5,000 km get assessed on the cent-per-kilometre method, and i now open a logbook and use that method for the remainder of the FY? I am slightly confused as to how i proceed from here, and i appreciate any help you can provide. Thank you.

    CM96 asked 5 months ago
    You will have a choice about whether you use the cents per kilometre method or the log book method. For each car you own, you must choose one method or the other for each financial year.

    If you decide to use the cents per kilometre method you will be limited to claiming a maximum of 5,000km of work-related travel.

    Alternatively, you can keep a log book for a 12 week period. You can do this by choosing ‘Start logbook’ in the myDeductions app. There are more than 12 weeks left in the 2018 financial year, so you still have time to keep a log book and use it to work out your car expenses for the current year. If you use this method you will have to locate receipts or evidence for car expenses you incurred earlier in the financial year. Note, however, that you don’t need receipts for petrol and oil as you can estimate these expenses based on the number of kilometres travelled.

    To use the log book method, you will also need evidence of the odometer reading at the start of the 2018 financial year, as well as the odometer reading at the end of the 2018 financial year.
  • I am suffering sever/ major depression and i am looking at attending a private depression rehabilitation centre which is based in Thailand or Malaysia. Due to these costs being in $10,000 mark, am I able to claim the cost of treatment back on tax?

    Lost asked 5 months ago
    An expense can be claimed if it is incurred in gaining or producing your assessable income. The expense must not have a capital, private or domestic nature.

    Medical expenses are generally considered to be private in nature. Consequently, your rehabilitation centre costs are not deductible, unless they have a direct connection to the gaining or producing of your assessable income.

    As these expenses do not appear to be directly connected with you earning any assessable income they would not be deductible.
  • Can you claim podiatrist expenses when you have a job that is on your feet all day?

    Loua asked 5 months ago
    An expense can be claimed if it is incurred in gaining or producing your assessable income. The expense must not have a capital, private or domestic nature. Medical expenses are generally considered to be private in nature. Consequently, your podiatrist expenses are not allowable deductions as they do not have a direct connection to the gaining or producing of your assessable income and are private in nature.
  • As a motorbike food delivery contractor (UberEats), can I claim deduction for compulsory protective gear (e.g. helmet) and optional protective gears (pants, jacket and gloves)?

    SunnyW asked 5 months ago
    You can claim a deduction for the cost of protective clothing which has a direct connection to the earning of income. If you use your motorcycle to make these deliveries, it is essential that you are protected from injury or harm that may happen in the course of your work.

    There is a difference between protective and conventional clothing. For example wearing a fleece jacket while riding your motorcycle does not make the jacket ‘protective’, even though it offers greater protection than not wearing a jacket at all. The clothing needs to be made of leather or similar abrasion resistant materials and be designed to reduce injury while riding to be classified as protective. It is your obligation to demonstrate that the clothing claimed as deductions are protective, so keep receipts and other records in case you are required to prove that they are protective clothing. If you are using the protective clothing outside of work, for example if you ride your motorcycle for private purposes using the same helmet, or you wear the protective clothing when not working, then you can only claim a proportion of the expenses equal to how much use is related to your work. Further information is available on our website at Work-related clothing, laundry and dry-cleaning expenses 2017.
  • Hi there, I am a part time uber driver. I have been filling my logbook since December 2017. I have done 10 weeks in row but I didn’t drive the 11 & 12 week because i was not feeling well. So my question was that do I need to start my logbook again or I can do next 2 weeks on 13 & 14 weeks? Thank you

    Kular89 asked 5 months ago
    Yes you may need to start your logbook again.

    If you choose the log book method for claiming car expenses for your Uber driving activities, the logbook needs to be kept for a continuous period of 12 weeks and be a true representation of the business use of your car. Your logbook is then valid for five years unless your business usage changes.

    If your 12 week period, including 2 weeks in which you did not drive Uber passengers, is not a true representation of the business use of your car throughout the year you will need to start your logbook again.

    Further information is available on our website under car expenses, ride-sourcing and tax and Logbook method.
  • Can i claim the depreciation on an electronic device such as a laptop or mobile phone if that product was acquired through a salary sacrifice scheme?

    Scott Cullen asked 5 months ago
    A salary sacrifice arrangement exists between an employer and an employee, where the employee agrees to forgo part of their future entitlement to salary or wages. This is in return for the employer providing them with benefits of a similar value. Salary sacrifice arrangements generally bring about a Fringe Benefits Tax (FBT) obligation on employer’s, however benefits such as portable electronic devices are exempt from FBT. This exemption is limited to items primarily for work-related use and one item per FBT year for items that have a substantially identical function, unless the item is a replacement item. This means that if you use the electronic device primarily for your work, your employer would not have to pay FBT on the value of that benefit.

    You can find more information about salary sacrifice arrangements for employees here.

    To claim a work-related deduction, such as depreciation on an electronic device:
    • 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.
    As the electronic device was acquired through a salary sacrifice arrangement, you have not actually spent the money yourself. Your employer provided the device to you as part of your salary arrangement, therefore you would not be able to claim a deduction for depreciation.

    For more information, see Deductions you can claim.
  • Claiming pre employment medical checks

    SimonMaccanti asked 5 months ago
    ‘In order to claim a deduction, the money you spent must be directly related to earning your income and the expense must not be private or domestic in nature. Expenses incurred to gain work are not allowable deductions as the money has been spent before you started earning income from the job to which they relate.

    Based on what you have told us the money spent on your medical expenses are considered to be private and are not allowable deductions.’
  • I am an part time Uber driver. Can I claim for dash cam? If possible can you please provide a list of deductable items. Thank you.

    Mikes asked 5 months ago
    Expenses incurred in running your ride-sourcing services are deductible. If you use your car for both personal purposes and in transporting Uber passengers you will need to apportion any car expenses and not claim the personal component.

    You are also able to claim expenses such as parking fees, road tolls, mobile phone costs, fees charged by Uber and other expenses to the extent that they are incurred in transporting Uber passengers. There are expenses that you are unable to claim such as parking fines, speeding fines, cost of maintaining your standard drivers licence and private use of the car.

    For income tax, if you are an individual, there are two ways of claiming car expenses that satisfy the substantiation rules – either:
    • cents per kilometres travelled which is limited to 5000km per year. The set rate per business kilometre covers the general running costs of your car including depreciation.
    • keeping a logbook to calculate the amount of car expenses claimed. The log book needs to be kept for a continuous period of 12 weeks.
    If you choose the log book method you are able to claim petrol, depreciation, general running costs such as insurance, registration, repairs and maintenance.

    Further information is available on our website under car expenses and ride-sourcing and tax.

    One of the easiest ways you can keep records for your ride-sourcing activities is by using the ATO app My Deductions tool. You can:
    • include income from ride-sourcing activities and say how much GST is included
    • take a photo of receipts and enter details
    • indicate that a percentage is for private use
    • use the 'Add trip' function as your logbook.
  • Iam a chef. I recently certify my skill of cert 3, 4 and diploma in hospitality spending $4500. Can i claim that on my tax return?

    Crishna asked 5 months ago
    Self-education expenses are deductible where they have a relevant connection to the taxpayer's current income-earning activities.

    If a taxpayer's income-earning activities are based on the exercise of a skill or some specific knowledge, and the subject of self-education enables the taxpayer to maintain or improve that skill or knowledge, the self-education expenses are allowable as a deduction.

    If the self-education subject objectively leads to, or is likely to lead to, an increase in a taxpayer's income from his or her current income-earning activities in the future, the self-education expenses are allowable as a deduction.

    Where a course of study may enable a taxpayer to get employment, to obtain new employment or to open up a new income-earning activity (whether in business or in the taxpayer's current employment) there is not a sufficient basis for the self-education expenses to be deductible. The expenses are incurred at a point too soon to be regarded as incurred in gaining or producing assessable income.

    Certificate 3, 4 and Diploma in Hospitality courses provide general management skills education in supervising a hospitality business. This is a different area of activity to your specialised skill as a chef. As these courses are not directed at gaining higher level promotion, or to increase your current income, you are not entitled to claim a deduction for these self-education expenses.

    For more information see Taxation Ruling TR 98/9 Income tax: deductibility of self-education expenses incurred by an employee or a person in business.
  • I have a work visa which gives me rights to work in Australia for three years. However, in 2017 Financial year. I only stayed in Australia for 130 days and was about to leave permanently to UK. I had my work related expenses incurred when I took my contractual salary from my Australian employer. Can I claim my work expenses as tax deductions in my 2017 tax return?

    John Ben asked 5 months ago
    Temporary residents of Australia and foreign residents are only taxed on their Australian-sourced income, such as money they earn whilst working in Australia.
    When completing your tax return, you're entitled to claim deductions for expenses which are directly related to earning your income.

    To claim a work-related deduction:
    • 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.
    If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.

    For more information see Deductions you can claim.
  • Lease Payments made for use of car

    Gunjan.sen asked 5 months ago
    The motor vehicle expenses you can claim depend on:
    • your business structure (sole trader/individual, company, partnership or trust)
    • the type of vehicle
    • how the vehicle is used.

    As a sole trader / individual you can claim a deduction for using a car that you owned, leased or hired under a hire-purchase agreement using one of the two deduction methods.
    • cents per kilometres travelled which is limited to 5000km per year. The set rate per business kilometre covers the general running costs of your car including depreciation.
    • keeping a logbook to calculate the amount of car expenses claimed. The log book needs to be kept for a continuous period of 12 weeks.

    If you choose the log book method you are able to claim petrol, depreciation, general running costs such as insurance, lease payments, registration, repairs and maintenance.

    You will need to know or estimate your business kilometres. Business kilometres are the kilometres you travelled in the car in the course of using it for work-related purposes. For more information as an individual see Car expenses or for a sole trader see Car expenses and substantiation rules.

    A company or trust can generally claim expenses for a motor vehicle owned or leased by their company or trust as long as the expenses are incurred as part of the everyday running of the business.

    These expenses can include the costs for providing a motor vehicle to an employee (or their associate) as part of their employment. If any employees (or their associates) use the vehicle for private purposes, the company or trust may have to pay fringe benefits tax (FBT). The FBT cost is also tax deductible.

    For more information see Claiming motor vehicle expenses in a company or trust.
  • Can I claim Uber fares to get to work as a tax deduction if I am medically unfit to drive?

    Carolyn King asked 5 months ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are also of a private nature. This applies even if you are medically unfit to drive. This means you will not be able to claim the cost of your Uber fares to work.
  • I am volunteering for riding for the disabled and am required to purchase a helmet for when I am riding the horses as part of my duties. Would a helmet be tax deductible as this is required for me to continue volunteering?

    Hayley asked 5 months ago
    No. You cannot claim deductions for expenses in relation to your volunteer activities. Tax deductions are allowable for expenses which are directly related to your income-earning activities. As volunteers do not earn income, the expenses you pay for whilst volunteering are private and are not deductible from your income.
  • I own a cafe and have traveled interstate for six weeks to learn new cooking skills in a bigger kitchen. Can I claim my travel costs as a work expense?

    Didi asked 5 months ago
    If you are a sole trader or an employee, you can claim a deduction for the expenses you incur in running your business or performing your employment duties as long as they are directly related to earning your income. If your travel is for both business and private purposes, you must exclude any private expenses from your claim.
    For more information, see Deductions you can claim.

    A business income tax deduction is allowable to a business for any loss or outgoing if it is necessarily incurred in carrying on the business for the purpose of gaining or producing assessable income. If you stay away from home for one or more nights on business travel you generally need to keep written evidence of all expenses to claim a deduction. If you travel away from home for six or more consecutive nights, you need to use a travel diary or similar document to record the detail of each business activity before your travel ends, or as soon as possible afterwards. You must record:
    • The nature of the activity
    • The day and approximate time the business activity began
    • How long the business activity lasted
    • The name of the place where you engaged in the business activity

    If you operate your business as a company or trust, fringe benefits tax may apply if the employee travel includes private activities and it has been paid for by the employer.
    For more information, see Business travel expenses.
  • I received a client invitation to an interstate event as a reward in recognition of outstanding performance. However my manager sent an email advising the company would not be covering any expenses for the trip should I accept. 1) Am I eligible to claim travel and accomodation expenses ie; flights, hotel, food, etc? 2) If yes to the above question - to what extent can I claim expenses for the 3 days 2 nights trip?

    J asked 5 months ago
    To claim a deduction for travel expenses as a work-related expense, you must have undertaken the travel in the course of performing your work duties as an employee. As the invitation to attend the event arose as a result of your employment performance rather than the performance of your work duties as an employee it would not be considered to be necessarily incurred in earning your income.

    Further information on travel deductions is available within draft Taxation Ruling TR 2017/D6: Income tax and fringe benefits tax: when are deductions allowed for employees’ travel expenses?
  • Hi If I was to lease an apartment for my brother to live in by himself instead of on the street (he is on a disability pension from Centrelink and no one will rent to him) and if reimburses me a small part of that rent out of his pension and then he claims Centrelink rent assistance would I have to declare the money he would give me as income or is it treated more as a private domestic arrangement (which it would be where) and not taxable. If taxable, can I claim the rent I pay to the apartment owner or any part of it as a tax deduction? Would the answer be the same if I owned the apartment and put him in it and he paid me something small out of his pension each fortnight? If in that second situation if have to pay tax on what he gives me, can I claim any of my costs of owning the apartment? Thank you.

    Dmor1a asked 5 months ago
    Whether you purchase or lease a property that is subsequently rented to a relative at non-commercial rates, the amount you receive for rent would represent assessable income. However, when the primary purpose of the property was not to earn assessable income, rather for private or domestic purposes, you would need to apportion your rental expenses. In these situations you would only be entitled to claim a deduction for rental expenses incurred up to the amount of rental income received. Further information is available in our Rental property 2017 guide or in IT 2167 Income Tax – Rental properties.
  • I'm currently the Director of a small business (Pty Ltd) in the hospitality industry. As part of growing my own self education in business and the current business with plans to expand, I've been looking to attend a 2 day learning Conference in London UK, which allows people to grow in different aspects of business and wealth, it teaches ways in which you can create more wealth and grow your new or existing business in various ways. My questions are; 1. Can I pay this as a business travel expense from the business account to fly from Australia to London as a business expense even though the Conference isn't directly linked to the Hospitality industry? 2. Or can I claim this on my Personal Tax deductions at the end of financial year as a business education travel expense?

    Tiggs asked 6 months ago
    If a course of study is too general in terms of your current income-earning activities, the necessary connection between the self-education expense and your income-earning activity does not exist. The cost of self-improvement or personal development courses is generally not allowable and would be considered private in nature.

    A deduction may be allowed in certain circumstances as described below:

    Deductible to the company
    A business income tax deduction is allowable to a business for any loss or outgoing if it is necessarily incurred in carrying on the business for the purpose of gaining or producing assessable income. You are required to determine if the expense is a benefit to the company or a benefit to the employee.

    If it is necessarily incurred by the company as a business expense, the treatment would depend on how the business chooses to pay for the self-education activity on the employee’s behalf. This would dictate how the payment is to be treated under either income tax or fringe benefits tax.

    If the business pays you a pre-determined amount to cover an estimated study expense, it is considered to be an allowance and falls for consideration under the income tax regime. The employee would include the allowance as assessable income and be entitled to claim self-education expenditure incurred, subject to the qualifying self-education provisions and the apportionment guidance below relating to the private proportion of the expense.

    If the business compensates the employee for the self-education expense, it is considered to be a reimbursement and as such is dealt with under the fringe benefits tax (FBT) regime, specifically the expense payment provisions. FBT is calculated on the taxable value of the fringe benefits provided. The taxable value is the amount the business reimburses or pays however this may be reduced by the amount that the employee would have been entitled to claim as an income tax deduction if the business had not reimbursed them.

    Deductible to the individual
    A personal income tax deduction for self-education expenses would be allowable if the taxpayer's income-earning activities are based on the exercise of a specific skill or some specific knowledge and the subject of self-education enables the taxpayer to maintain or improve that specific skill or knowledge. A deduction is also allowable for self-education expenses if the subject of self-education leads to, or is likely to lead to, an increase in the taxpayer’s income from current income-earning activities.

    Apportionment
    If your trip to attend the conference is also partly for private purposes (eg. a holiday), you can only claim a deduction for the proportion of the costs that reasonably relate to the conference. For example, if you spend 3 days at the conference and 9 days holidaying, you would only be able to claim 25% of the cost of your flights and your actual accommodation and meal costs at the conference.

    Further information
    If you require further information, Taxation Ruling TR 98/9 explains the ATO view on the deductibility of self-education expenses and Fringe Benefits Tax – A Guide for Employers, Chapter 9 explains more about reimbursements. You may also wish to seek professional advice, or apply for a Private Binding Ruling.
  • I am a student working part time as a baker. We start work at 3am. There are no trains from my place to work at that time, I am forced to take an uber. Can I claim the uber costs on tax ?

    TJ281 asked 5 months ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are also of a private nature. This applies even if you work outside normal hours. This means you will not be able to claim the cost of your Uber fare to work as a result of your workplace schedule.

    However, you can claim deductions in some circumstances, as explained further here.
  • A company has requested I pay for a pre Employment medical and a police check prior to working with them. I can’t get the job without. Can I claim these back at tax time ?

    Marc asked 5 months ago
    In order to claim a deduction, the money you spent must be directly related to earning your income and the expense must not be private or domestic in nature. Expenses incurred to gain work are not allowable deductions as the money has been spent before you started earning income from the job to which they relate.

    Based on what you have told us the money spent on your medical expenses and police check are considered to be private and are not allowable deductions.
  • I am a lifegaurd and swim teacher, we must stay as fit as possible. Can I claim fitness classes on tax?

    Lw lg asked 5 months ago
    The cost of maintaining a standard of fitness is inherently private in nature unless it is a requirement of your job to do so. If you can demonstrate that your employer requires that you maintain a high level of fitness then you may be able to claim a deduction. However, strenuous physical activity must be an essential and regular element of your duties.
  • I am a financial planner. I have a home office where my employee and I work but I meet clients at their home or at a local cafe rather than my home where possible. It at their home, I take coffees for everyone, if at cafe, I buy coffees for everyone. If we are formalising a new business arrangement I will sometimes buy lunch or dinner etc depending on time of day. Can I claim a tax deduction for this ?

    Ange asked 5 months ago
    No. These types of expenses would be considered entertainment expenses, which are generally not deductible. Entertainment expenses include the cost of business lunches or similar type of events. This is the case even if you discuss business matters at the event.
  • My employer has requested I undergo a urine drug screen at my own cost. Is this common practice for people already currently employed and is this tax deductible?

    Jordan13 asked 6 months ago
    Generally medical expenses are considered private in nature and do not have a direct connection to the gaining or producing of assessable income. Therefore a deduction would not generally be allowed. If ongoing medical testing expenditure is required to allow you to maintain existing employment as part of the conditions of your employment, you may be able to claim a deduction for the cost of the test. For more information, see Deductions you can claim.
  • As part of my contract as a subcontracor to the contractor who is the father of a disabled man requiring 24hr care, I am required to live in and pay rent. Is this rent a tax deduction?

    HCucksey asked 6 months ago
    No. To claim a tax deduction for rent, it must be spent in the course of earning your income and must not be an expense of a private or domestic nature. You cannot claim a deduction for an expense, such as rent, just because it is a necessary cost for you to earn your income.

    In your case, you are being charged rent to live in a property where you work. This does not change the private or domestic nature of the rent you are paying.

    You may wish to seek professional advice, or to apply for a Private Binding Ruling which will provide binding advice specific to your facts and circumstances.
  • I am on a temporary working visa, can i claim the cost of private health insurance? Can I claim medical costs?

    tassietiger asked 8 months ago
    Medical expenses and private health insurance expenses are not deductible. However, if you are from a country that has a reciprocal health care agreement with Australia, you may be entitled to claim a rebate for part of your private health insurance expenses.
    • More information about Reciprocal health care agreements can be found on the Department of Human Services website.
    • More information about the Private Health insurance rebate and eligibility can be found on the ATO website.
  • HI I'm a student who will start working as an optometrist end of this year. As a student I had to spend thousands in equipments which I will continue to use an optometrist. I am wondering whether the money I spent on the equipments 2 years ago could be considered to be a deduction when I do start working in the next financial year? Thanks

    Sambamham asked 6 months ago
    You can only claim expenses incurred in gaining or producing your income. A student who is currently working in their field of study may be able to claim their study expenses. Expenses incurred in relation to study before you actually start working in that occupation are not deductible as they are incurred at a point too soon.

    However, if the equipment you have purchased is a capital asset, you may be able to claim a deduction for decline in value of the asset once you commence to use it in your occupation if it has not already been fully depreciated. You can find more information about depreciation assets in Guide to depreciating assets 2017.
  • I have to take an uber semi frequently to my workplace due to my rostering or is this my choice?? - can I claim this back on tax ? If so how ?

    Epai asked 6 months ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are also of a private nature. This applies even if you work outside normal hours. This means you will not be able to claim the cost of your Uber fare to work as a result of your workplace schedule.

    However, you can claim deductions in some circumstances, as explained further here.
  • How do you record donations in the myDeductions ATO app?

    rosst400 asked 6 months ago
    To record a donation in the ATO app, please following these instructions*:
    1. From the myDeductions home screen, select ‘Add Expense’
    2. If you’ve enabled myDeductions to record both business as well as employee and general expenses, then the first step in the ‘Add expense’ screen is to choose the toggle position for ‘Is this transaction for my business’ to ‘Yes’ or ‘No’
    3. Fill in the ‘Amount’, ‘Transaction date’, ‘Description of expense’ and ‘Is this 100% claimable’ fields
    4. Choose ‘Gifts or donations’ in the ‘Expense type’ field.
    5. Select ‘save’.
    You also have an option to add a photo of a receipt.
  • I am a live sound engineer. I use headphones as part of my job to monitor sound sources. Can I claim this as a deduction?

    Dave157 asked 6 months ago

    If you bought the headphones to help earn your income, you can claim a deduction for some or all of the cost. If you use the headphones for both work and private purposes you will need to apportion the amount you claim. You may only claim a deduction for the work-related portion of the cost. For example, if you use the headphones for private purposes half of the time then you may only claim a deduction for 50% of the cost.

    The way in which you claim the deduction depends on the cost of the headphones and your status as a taxpayer. If you are an employee sound engineer then you may claim an immediate deduction if the headphones cost $300 or less. If the headphones cost more than $300, you can claim a deduction for their decline in value. If you are operating as a small business, you can claim an immediate deduction for assets that cost up to $20,000.

  • I am a music teacher can I claim a deduction for the cost of my flute

    asked 6 months ago
    If you use the flute in the course of your teaching duties, then you can claim a deduction for its decline in value (depreciation). If you also use the flute outside of work for private purposes you will need to apportion the deduction you claim.

    See Tools, equipment and other assets for more information.
  • I work in disability Out of home care and have high needs clients that require both physical intervention/blocking (from hurting themselves or others) and physical fitness due to clients being aggressive (grabbing, punching etc.) can I claim 1. Remedial massage from strains after physical incidents with clients? And 2. My gym membership, without which I wouldn’t have the ability to defend myself or have the fitness required to complete my job.

    Ambz810 asked 6 months ago
    1. Can I claim remedial massage from strains after physical incidents with clients?
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or domestic in nature.

    Generally medical expenses are considered private in nature and do not have a direct connection to the gaining or producing of assessable income. A deduction would not generally be allowed.

    2. Can I claim my gym membership, without which I wouldn’t have the ability to defend myself or have the fitness required to complete my job.
    The cost of maintaining a standard of fitness is inherently private in nature unless it is a requirement of your job to do so.

    If you can demonstrate that your employer requires that you maintain a high level of fitness then you may be able to claim a deduction. However, strenuous physical activity must be an essential and regular element of your duties.
  • Hello, My employer required me to undergo a preemployment medical examination that I had to cover in oder to get the job. It was a vaccination for Q-Fever to be able to work in the beef industry. Such expense cost $530 so I would like to know if I can claim it as a deduction in my next tax return. Thank you, Pablo

    pablo.solisj asked 6 months ago
    In order to claim a deduction, the money you spent must be directly related to earning your income and the expense must not be private or domestic in nature. Expenses incurred to gain work are not allowable deductions as the money has been spent before you started earning income from the job to which they relate.

    Based on what you have told us the money spent on your medical expenses and examination are considered to be private and are not allowable deductions.
  • Am I able to claim the depreciation on my vehicle monthly ?

    Ian Back asked 7 months ago
    You can claim deductions for expenses which are directly related to earning your income, including vehicle and other travel expenses, once per year when you lodge your income tax return.

    If you are an individual there are two ways of claiming car expenses that satisfy the substantiation rules – either:
    • cents per kilometres travelled which is limited to 5000km per year; or
    • keeping a logbook to calculate the amount of car expenses claimed. The log book needs to be kept for a continuous period of 12 weeks.
    Only the second method, the log book method, enables you to claim a deduction for deprecation, as well as petrol and general running costs such as insurance, registration repairs and maintenance.

    If you use your car for both personal and work-related use you will need to apportion any car expenses between personal and work-related use.

    If you pay PAYG instalments, you still need to lodge an annual income tax return. If your circumstances change, such as additional deductions, you can vary the amount you pay for the current income year. Our PAYG instalment calculator will help you work out your instalments if you decide to vary the amount.

    Whether you lodge your own return or use a tax agent, myDeductions can help you keep your tax records. At tax time you can upload your data to pre-fill your tax return or email it to your tax agent. You can record your information on a single device throughout the year using myDeductions but you can only upload once per financial year to declare the income earnt and the deductions you wish to claim.
  • I volunteer for a registered charity helping blind people attend running and walking events. It often involves driving the blind people from their house to the events. Can my kilometers be claimed?

    Aaron asked 7 months ago
    No. You cannot claim deductions for travel expenses in relation to your volunteer activities. Tax deductions are allowable for travel expenses which are directly related to your income-earning activities. However, as volunteers do not earn income, the travel expenses you pay for whilst volunteering are private and are not deductible from your income.
  • Hi, I work as a professional horse rider. Often I require remedial massage and physiotherapist to soothe out sore muscles and joints acquired from my riding work. As my body is a tool I cannot work without and the required phsio needed due to work related physical stress can I claim phsio costs?

    Lxmaurer asked 6 months ago
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or domestic in nature.

    Generally medical expenses are considered private in nature and do not have a direct connection to the gaining or producing of assessable income. A deduction would not generally be allowed.

    If you can demonstrate that you are required to undertake physiotherapy on a regular basis as part of your normal duties then the expenses are allowable deductions. On this basis you are entitled to claim a deduction for the expenditure you have paid net of any reimbursement from your employer, Medicare or Private Health insurance.
  • Can you claim contact lenses for uber?

    Buddy asked 6 months ago
    No, you cannot claim a deduction for contact lenses in relation to your ride-sourcing activities.Expenses relating to personal medical conditions are considered private in nature.

    Expenses incurred in running your ride-sourcing services are deductible. They may include things that relate to maintaining or operating assets used to provide the ride-sourcing services. Further information is available on our website under car expenses and ride-sourcing and tax.

    One of the easiest ways you can keep records is by using the ATO app MyDeductions tool. You can:
    • include income from ride-sourcing activities and say how much GST is included
    • take a photo of receipts and enter details
    • indicate that a percentage is for private use
    • use the 'Add trip' function as your logbook.
  • Could I claim additional computer equipment such as keyboards and mice that I've purchased for work, even though my employer already provides similar equipment? The reason for this would that I prefer to use equipment of a higher quality. What about stationery? Thanks

    Shimtoo asked 7 months ago
    No. You cannot claim a tax deduction for the purchase of additional computer equipment. This would be considered a private expense as your employer provides you with the required equipment to undertake your job.

    You can claim a deduction for the cost of diaries, pens and other stationery to the extent that you use them for work.
  • I was required to complete an intense fitness test as part of the interview process for my current job. My job requires a high level of fitness and as part of my contract I am expected to maintain my fitness and complete a high level of physical exercise. Can I claim my gym membership/other exercise related expenses on my tax?

    Loz asked 6 months ago
    The cost of maintaining a standard of fitness is inherently private in nature unless it is a requirement of your job to do so.

    If you can demonstrate that your employer requires that you maintain a very high level of fitness then you may be able to claim a deduction. However, strenuous physical activity must be an essential and regular element of your duties.
  • I sit when working and this over the years has led to a detoriation in my spinal health, and I am wondering if the doctor's bills I have paid are in any way deductible? I work from home in my own business which is a private company.

    gtgart asked 6 months ago
    You cannot claim a deduction for doctors’ bills. Expenses relating to personal medical conditions are considered private in nature.
  • Can I import transactions from my bank statement or personal finance software tool? Or export from myDeductions? This will help me eliminate duplication of effort and potential mistakes.

    MO asked 8 months ago
    You cannot currently import transactions from other software into myDeductions. You can choose to export your data from myDeductions into a CSV file (spreadsheet). To do this, open the app, select ‘myDeductions’, then select ‘settings’ and ‘share via email’. Select which financial year’s records you wish to export, then select the ‘share data via email’ button.

    We welcome all feedback and suggestions that you may have to improve our services. You can leave your feedback via our website at https://www.ato.gov.au/.../Compliments-and-suggestions/
  • During my work, I have to drive around quite a bit from client to client. Buying coffee or energy drink while work-related driving for road alertness/safety can be claimed for a deduction?

    work driving asked 7 months ago

    Deductions are not allowed for expenses that are private or domestic in nature. Coffee and energy drinks have the character of personal living expenses. As such, they are private in nature and their cost is not deductible.

  • I am hired on a casual contract at an architecture company, but work full-time. How does this affect my claim for self-education / industry conference (eg. Resilient Cities Conference)? Particularly if I wish to attend this on my own accord?

    nchow1 asked 8 months ago

    Where you attend a conference to maintain or improve skills or knowledge you use directly in your current work, the costs may be deductible. It does not matter that you only work casually or part-time in that field or that you attend of your own accord.

    If your trip to attend the conference is also partly for private purposes (eg. a holiday), you can only claim a deduction for the proportion of the costs that are reasonably relate to the conference. For example, if you spend 3 days at the conference and 9 days holidaying, you would only be able to claim 25% of the cost of your flights and your actual accommodation and meal costs at the conference.

    If you require further information, Taxation Ruling TR 98/9 explains the ATO view on the deductibility of self-education expenses (paragraphs 64-70 discuss ‘dual purpose’ travel). You may also wish to seek professional advice, or apply for a Private Binding Ruling.

  • Are any expenses to attend job interviews tax deductible?

    Ant asked 8 months ago

    No. You cannot claim a tax deduction for expenses to attend a job interview, as these expenses are not directly related to earning your income, as specified on the page, Deductions you can claim. Since you were not already earning income from the job, the expenses to attend the job interview are not expenses related to earning that income. The expenses are paid too soon to be considered to directly relate to that income.

  • I am a self-employed locum (pharmacist) - working at various (3 to 4) pharmacy through out the day for 3-4 hours at each pharmacy (starting at 5am and finishes at 7pm) everyday.... I have to incur expenses for my meals/ coffee from my pocket because of this work situation and the pharmacy I am working - are not providing lunch/coffee as well... so my question is can I claim this lunch expenses (meal/coffee expenses) as my deductions?

    Dhaval asked 8 months ago
    You are not able to claim a deduction. Meals, snacks and drinks (including coffee) you buy and consume during a work day are a private expense for which you cannot claim a deduction. The only exceptions are if you travel away from home overnight in the course of performing your work, or receive an overtime meal allowance and buy food and drink to consume while working the overtime.
  • Inquiry on possible deductions for a $13000 tractor. We own a 40acre property which we are cleaning up to grow lucerne or similiar. Thankyou

    Kritta asked 8 months ago
    The ATO website has information regarding starting your own business.

    Depending on the business structure you are operating under (individual, partnership, company or trust) you will need to consider if you are a hobby or business operator. If you consider you are in business you will need to determine at what point your business commenced. If you incur the expenses prior to the start of your business activity they may not be deductible for tax purposes.

    If you consider that you are in business you may be able to claim deductions against the income you earn. Further information regarding the deductions you can claim can be found on our website.

    Depending on your circumstances you may be able to:
    • claim a claim an ‘instant asset write-off’ (depreciate the asset) for a tractor; or
    • offset the deduction against other income provided you pass the non-commercial loss tests.
    Instant asset write-off
    You can able to claim an instant depreciation write-off for the full cost of an asset where the asset:
    • costs less than $20,000 each
    • is part of a pool if other depreciating assets that cost $20,000; or
    • is part of a small business pool whose balance is less than $20,000 at the end of an income year.
    The $20,000 write-off threshold now applies until 30 June 2018.

    You can only claim a deduction for the portion of the asset used for business or other taxable uses.

    Non-commercial loss tests
    If the amount of the deduction you can claim exceeds the amount of income from your business you will have a ‘loss’. You can only claim losses from genuine business activities. This is called the non-commercial loss tests. If you pass any of the tests, you can offset your business losses against your other income:
    • assessable income test – the business has assessable income of at least $20,000
    • profits test – the business had a profit for tax purposes in three out of the past five years (including the current year)
    • real property test – the value of real property or of an interest in real property that you used in the business on a continuing basis was at least $500,000 (excluding any residential premises component of the real property)
    • other assets test – the value of assets (excluding real property, cars, motor cycles and similar vehicles) you used on a continuing basis in carrying on the business was at least $100,000.
    There is an exception to the non-commercial loss tests listed above for primary production losses. You can claim your primary production losses immediately against other income if you meet both the following conditions:
    • you are a sole trader or a partner in a partnership
    • your assessable income from other sources is less than $40,000, excluding any net capital gain.
  • Hi I have a question with Uber fares. Can we claim GST on the fare when we dont get a receipt or tax invoice from the driver but just a summary of the trip and amount with no ABN on the document. Thanks,

    ALEXANDER asked 8 months ago
    You can claim a deduction for a business purchase in your income tax return (less any GST credit to which you are entitled). If you're not entitled to a GST credit you can claim the full cost of the purchase, including any GST, as a deduction. See GST credits and income tax deductions with various examples.
  • Hi I'm looking at renting a camera for work. I need it to take photos of products for advertisement. Since I will be using it 100% for work purposes will I be able to deduct 100% of the rental costs

    yoey asked 8 months ago
    If you are an employee you are able to claim the cost of renting a camera at label D5 ‘Other work-related expenses’. But, please keep in mind the following rules:
    • you must have spent the money yourself and weren’t reimbursed
    • it must be directly related to earning your income
    • you must have record to prove it.
    If you are a sole trader in business and you rent a camera, you can claim a deduction for the expenses you incur in running your sole trader business as long as they are directly related to earning business income. However, if you are in business and the business incurs the rental cost it would be the business that was able to deduct that expenditure

    If in the future you use the camera for both business/employment and private purposes you can only claim a deduction for the business/employment portion of the expense.
  • I have to travel for work sometimes and board my pets whilst away, is this expense tax deductible?

    Lora asked 8 months ago
    No. The boarding expense for pets, whilst you are travelling for work is considered to be a private or domestic expense. As a consequence a tax deduction cannot be claimed as the costs are not directly related to your income earning activities.
  • I have regular doctors appointments for my health. Sometimes due to work travel, conflicting important meetings etc, I must miss the doctors appointment and need to pay for it regardless. Is this deductible or GST able?

    Sheppo asked 9 months ago
    No. You cannot claim a deduction or GST (input tax credits) for expenses incurred for doctor’s appointments that you miss because of your work commitments.

    Doctors’ expenses are considered to be private in nature and not in connection with your income earning activities.

    If work reimburses you for the cost of the lost appointment the employer considers the expense to be their own and the recipient (you) incurs the expenditure on behalf of the employer. As such, the reimbursement is not income to you. Your employer may have to pay Fringe Benefits Tax depending on the value of the benefit for the year.
  • Are will kits or estate management costs tax deductible?

    Gekko_Sydney asked 8 months ago

    Will kits or paying a solicitor to prepare a will would not be deductable as it is considered a private expense. The cost of originally drawing up an estate management plan would also be considered not deductable as this cost is not incurred in gaining or producing assessable income and is also considered a private expense.The cost of managing an estate may be deductible provided that cost was related to the on-going management fees, retainers and reviews.

  • Can I claim noise cancelling headphones that I only use in my open floor office which is loud. I use them every work day... Does receiving a doctors certificate help?

    James00 asked 9 months ago
    No. You are not able to claim a deduction for noise cancelling headphones (akin to ear muffs) as the noise generally in an office environment is not sufficient to require protective equipment, nor are ear muffs classified as tools of trade. This expense would be considered as a private expense. Obtaining a doctors certificate would not change the decision as it would be an expense related to a personal medical condition and would not be deductable.
  • My work required a medical certificate for days when im sick. This costs me $65 to see a doctor. Not all jobs require a medical certifcate so will I be able to claim this on tax.

    melaniem asked 9 months ago
    No. You cannot claim a deduction for expenses incurred in obtaining a medical certificate. Doctors’ visits are considered to be private in nature and not in connection with your income earning activities.
  • Hi, I drive Uber and use a car for that which is registered in my partners name, the car finance and car insurance is in my partners name as well. Can I still claim car expenses as deductions on my income tax return (cents per kilometre method)?

    Ricky asked 9 months ago
    If your spouse or de-facto partner is the owner of the car, the car is considered as a joint asset and you can claim deductions for the car in these circumstances.

    If you use your car for both personal purposes and in transporting Uber passengers you will need to apportion any car expenses and not claim the personal component.

    For income tax, if you are an individual there are two ways of claiming car expenses that satisfy the substantiation rules – either:
    • cents per kilometres travelled which is limited to 5000km per year. The set rate per business kilometre covers the general running costs of your car including depreciation.
    • keeping a logbook to calculate the amount of car expenses claimed. The log book needs to be kept for a continuous period of 12 weeks.
    If you choose the log book method you are able to claim petrol, depreciation, general running costs such as insurance, registration, repairs and maintenance.

    You are also able to claim expense such as parking fees, road tolls, mobile phone costs, fees charged by Uber and other expenses to the extent that they are in transporting Uber passengers.

    There are expenses that you are unable to claim such as parking fines and speeding fines, cost of maintaining your standard drivers licence and private use of the car.

    Further information is available on our website under car expenses and ride-sourcing and tax.

    One of the easiest ways you can keep records is by using the ATO app MyDeductions tool. You can:
    • include income from ride-sourcing activities and say how much GST is included
    • take a photo of receipts and enter details
    • indicate that a percentage is for private use
    • use the 'Add trip' function as your logbook.
  • Just hoping to get info on claiming uber (petrol, car covers, dashboard camera etc.) on tax?

    Ben7383 asked 9 months ago
    Yes, you will be able to claim some of the expenses in relation to your Uber driving.

    If you use your car for both personal and work-related use you will need to apportion any car expenses between personal and work-related use.

    For income tax, if you are an individual there are two ways of claiming car expenses that satisfy the substantiation rules – either:
    • cents per kilometres travelled which is limited to 5000km per year. The set rate per business kilometre covers the general running costs of your car including depreciation.
    • keeping a logbook to calculate the amount of car expenses claimed. The log book needs to be kept for a continuous period of 12 weeks.
    If you choose the log book method you are able to claim petrol, depreciation, general running costs such as insurance, registration, repairs and maintenance.

    You are also able to claim expense such as parking fees, road tolls, mobile phone costs, fees charged by Uber and other expenses to the extent that they are work-related.

    There are expenses that you are unable to claim such as parking and speeding fines, cost of maintaining your standard drivers licence and private use of the car.

    Further information is available on our website under car expenses and ride-sourcing and tax.

    One of the easiest ways you can keep records is by using the ATO app MyDeductions tool. You can:
    • include income from ride-sourcing activities and say how much GST is included
    • take a photo of receipts and enter details
    • indicate that a percentage is for private use
    • use the 'Add trip' function as your logbook.
  • Hi there I am a UBER driver, I had used prime cost method for depreciation calculation last year, can I changed it to diminishing value method this year?

    prime asked 9 months ago
    No. Once you choose a method of deprecation for an asset you cannot change the method of deprecation. You have chosen the prime cost method of deprecation for the asset, so it must apply to all later income years for that asset.

    You will also need to apportion the amount you claim as a deduction for depreciation of your car between your personal use and driving for Uber.
  • Injured on workers compensation, can I claim the cost of retraining because can’t go back to pre injury duties. I need to be retrained to get back into the workforce.

    Jv asked 9 months ago
    The fact that you were injured and receiving workers compensation is not a relevant consideration in deciding whether you are able to claim self-education expenses as a deduction.

    Self-education expenses are deductible when the course you undertake leads to a formal qualification and meets the following conditions.

    The course must have a sufficient connection to your current employment and:
    • maintains or improves the specific skills or knowledge you require in your current employment, or
    • results in, or is likely to result in, an increase in your income from your current employment.
    You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it:
    • might be generally related to it, or
    • enables you to get new employment.
  • If a workplace has a requirement that employees call a mobile phone number in order to advise of non-attendance or running late, can the employees claim a deduction for the cost of the call? And is there a difference in this if calling the mobile phone is one of two options (i.e. email)

    asked 9 months ago
    If you use your own phone for work purposes, you may be able to claim a deduction if you paid for these costs and have records to support your claims. As we would expect that the cost of advising of non-attendance or running late would be minimal, and less than $50 in total, you may make a claim on a cost of call basis, without having to analyse your bills as follows:
    • $0.25 for work calls made from your landline
    • $0.75 for work calls made from your mobile
    • $0.10 for text messages sent from your mobile.
    You need to keep records for a four-week representative period in each income year to claim a deduction of more than $50

    If you are a casual employee you do not derive assessable income until you commence performing your duties at you place of employment and you cannot claim a deduction for telephone expenses as there is no connection to your employment.

    For further information, please see our website regarding claiming mobile phone expenses.

    You would generally not be entitled to a deduction for the use of email as a minimal amount of data would be used.
  • I have compulsory drug screening which is out of pocket to hold my working registration and current job. Is this claimable?

    BJML asked 9 months ago
    Generally medical expenses are considered private in nature and do not have a direct connection to the gaining or producing of assessable income. A deduction would not generally be allowed.

    If ongoing medical testing expenditure is required to allow you to maintain existing employment as part of the conditions of your employment, you may be able to claim a deduction as the costs will have been incurred to gain or produce your income.
  • I get uber and bus to and from work, are they tax deductible?

    Itscorey4 asked 9 months ago
    ‘Travel from your home to your regular workplace is considered private home to work travel and is therefore not deductible.’
  • Can you claim uber travel when working outside nornal hours eg, Security from 10pm - 3am

    Kez asked 9 months ago
    No. Trips between home and work are generally considered private travel, even when they occur outside of normal work hours. You cannot claim a deduction for a private expenditure.
  • UBER services charges are not inclusive of GST, why? UBER is receiving income from services rendered in Australia.

    Pritpal asked 9 months ago
    The services provided by a GST registered facilitator (Uber) are subject to GST if they are provided wholly from within Australia or wholly through an Australian business carried on here. There will be no GST liability for Uber if their supply is made through an overseas based entity or if Uber is not carrying on a business in Australia because Uber would not be making a taxable supply in Australia. As such their service fees would not be subject to GST.

    If you drive for Uber you need to be registered for GST. If you are not registered for GST as an Uber driver or have not advised the facilitator that you are registered for GST, Uber will apply GST and you will not be entitled to an input tax credit.

    Further information on ride-sourcing can be found on our website.
  • Working as a contractor dentist for a company for 4 days a week. 1 extra day is locum work travelling to different center, but sometimes may be the same centre. Does the locum work day car expense counts as private or business, since it is not on the contract.

    Ju asked 9 months ago
    The status of your employment (contractor vs locum) does not usually effect whether the trip is private or business. Most people can't claim the cost of travel between home and work because this travel is private.

    However, the costs you incur if you travel from one place of employment to another in the same day would be deductable. There are two methods for working out how much you can claim as a deduction; the logbook method and the cents per kilometre method. For further information see our website.
  • Hello, I was wondering if I can claim physio treatment costs paid by me for a work related injury to my knee? It involves 3 treatments, two of which were partially covered by my private health insurance(65%) but the third was paid fully by me. Cheers, Phil Thomson

    Phil Thomson asked 9 months ago
    No. You cannot claim a deduction for expenses incurred in obtaining physiotherapy services. These are considered to be private in nature and not in connection with your income earning activities.
  • I drive for Uber, can I claim a meal/drink expenditure for my lunch/dinner.

    JMR asked 9 months ago
    No, expenditure on a meal or drink is considered a private expense and is not deductible.
  • I am self employed and injured my neck at work. I do not have health insurance. I am not eligible for workcover. I am paying for physiotherapy three times a week and weekly doctor visits so that I can continue working. Can I claim any of these expenses as deductions?

    Smeagol asked 9 months ago
    No. You cannot claim a deduction for expenses incurred in obtaining physiotherapy services and doctor’s visits. These are considered to be private in nature and not in connection with your income earning activities.
  • I took up a certification exam last year during my employment. Can I claim a deduction on the exam fee?

    Santhya asked 9 months ago
    Self-education expenses (including the exam fee) are deductible when the course you undertake leads to a formal qualification and meets the following conditions.
    • The course must have a sufficient connection to your current employment and maintains or improves the specific skills or knowledge you require in your current employment, or
    • is likely to result in an increase in your income from your current employment.
    You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it:
    • might be generally related to it, or
    • enables you to get new employment.
  • I work for a small not for profit organisation as an Office Administrator. I am required as part of my duties to collect the mail from the work PO Box. I live approximately 1km from my workplace, I travel to work and then during the day collect the mail from the PO Box and then go back to work two days a week which is approx. 6km round trip in the other direction from my home, which I claim every month through my workplace at .66c/km (The amount I claim appears as an allowance on my group certificate.) I have been told recently that this is not claimable as I am picking up mail. Also once a year we have a Community Event that I am expected to work at on a Sunday afternoon at a venue that can hold our community which is approximately 250 people. We also set up on the Friday. I travel to work to pick up other employees, volunteers or other things required on the day and travel to the event and back, a round trip of 38km x 2. I have also been told this is not claimable. Can you please advise if this is the case as I feel it is part of my work duties I should be able to claim for these circumstances.

    MMG asked 9 months ago
    You can claim a deduction for car expenses incurred in undertaking work related travel provided:
    • your employer does not reimburse these expenses, and
    • you have records relating to the expenses incurred.
    There are two methods for working out how much you can claim as a deduction; the logbook method and the cents per kilometre method. You would be able to use the cents per kilometre method of calculating your car expenses for the collection of mail (which is not incidental to home to work travel). If you stopped at the post office on your journey between home and work it would not be claimable as the main purpose of the trip would be considered as a private journey between work and home. You need to include any allowance you receive in relation to these expenses in your tax return.

    The expenses you incur for the trips related to the Community Events would also be deductable as they have the necessary connection to you earning your employment income.

    You would also need to keep records for your work-related travel and how you calculated the deduction amount.
  • I receive earnings from driving for Uber. I do not own the car I drive. Uber Australia Pty Ltd ABN 49 160 299 865 (registered for GST) issues invoices and transfers the fare from the Rider's nominated account to its account under a merchant authority. I have no connection with the Rider other than having the opportunity to accept the Ride, not knowing where the destination is. For example I could not issue a tax invoice if requested for a fare over $82.50 as all invoices are generated by Uber. More recently Uber have started to show them invoicing as agents for Drivers if they have ABN details, but payment is still under Uber Australia Pty Ltd authority. Uber drivers are referred to as Driver Partners, but if fact are totally dependent on Uber for pricing and can be kicked off the app at will. Uber drivers are sub-employees used while Uber is developing the technology that will enable it to switch to driverless cars. Please tell me what my enterprise is?

    cmsr asked 9 months ago
    Ride sharing is treated as taxi travel for GST purposes in which you are required to obtain an Australian Business Number (ABN) and register for GST. This is the case regardless of your turnover or the GST registration turnover threshold.

    As you are carrying on an enterprise of a ride-sourcing you have similar obligations to a taxi driver. That is, in addition to being required to be registered for GST you must issue Tax Invoices for amounts over $82.50.

    As you do not own your vehicle, you need to use the ABN category of 52991 Taxi Driving Services and a description of ‘ride-sourcing’ as your business description.

    Further information is available on our website under What you need to know and Ride-sourcing and tax.
  • I have purchased a sit- stand ergonomic desk for my work and would like to obtain precise instructions about how I can claim this as a deduction or work related expense.

    ClairePhillips asked 9 months ago
    A sit-stand ergonomic desk would be considered as equipment that you are able to claim an immediate deduction if the cost is under $300.

    If the item costs more than $300 or forms part of a set that is over $300, you can claim a deduction for the decline in value over a period of time. You will need to use the Depreciation and Capital Allowances Tool in myTax. There is a helpful video regarding using the Tool, which you may wish to watch to assist you to calculate the assets based deprecation.

    If the desk is used for both personal and work-related purposes, you will need to apportion the use between personal and work-related use. Keep records of how you worked out the amount of the deduction you claimed.
  • I have made a donation to a reputable NZ based charity. Can I claim a tax deduction for this?

    Megan J asked 9 months ago
    An endorsed charity or deductible gift recipient (DGR) is an entity or fund that can receive tax deductible gifts from other Taxpayers. You can claim a deduction for donations made to DGRs.

    To determine if the New Zealand based charity you donated to is a DGR endorsed charity you need to go to DGR ABN LOOKUP and search the charity’s Name or Australian Business Number. If the charity is registered as a DGR you will be able to claim a deduction for the donation. If the charity is not registered as a DGR you will be unable to claim a deduction.
  • my employer has guidelines that we must be clean shaven every day. these are printed and agreed to by us the workers. can we claim the costs of shaving equipment and shaving creme?

    asked 9 months ago
    No, you are unable to claim the cost of shaving equipment and shaving cream as a tax deduction against your income. For an amount to be deductable it has to have the necessary connection to employment and not be considered to be an expense which is private or domestic in nature. Shaving materials and other personal grooming expenses are private expenses and not deductable.
  • I started renting out my home and did not purchase another property (including an owner occupied home) for another 3 years. Then I sold the property. When does the capital gain calculation start from? Is it the date that I started renting out the property (even though I didn't own any other property), or the date that I purchased a property to live in, three years later?

    Giggly asked 10 months ago
    A residential property is a capital gains tax asset. You generally start working out any capital gain from when you acquired the property. A capital gain you make when you dispose of a residential property which was your main residence is generally ignored.

    You can continue to treat a residential property as your main residence if you move out of it and do not treat another property as your main residence. However, if you use your main residence to earn assessable income (eg rent), then you can only be absent from it for a period of up to six years and still treat it as your main residence, so long as you have not treated another property as your main residence during that time.

    If you do not choose to treat the property as your main residence while you are absent and you use the property to derive rent, you would not get the full main residence exemption. You would have to apportion any capital gain you made on the disposal of the property from the time you start to rent it out.

    For more information visit our website: Using your home to produce income.
  • Can I use this years log book of 12 weeks to cover last years travel as I didn't know I needed a log book until this year due to amount of kilometres travelled? Also can I claim depreciation for a car that I am required to use to get between sites and I get no reimbursement for this? And can I claim tolls that are required as part of my job providing I have the tax invoice?

    Confused lodger asked 10 months ago
    Yes, you can claim a deduction for car expenses you incur for the use of a car to get between sites as this is considered work related. This is provided:
    • your employer does not reimburse the expenses, and
    • you have records relating to the expense incurred.
    If you do not own the car you can only claim a deduction for fuel, oil and other actual costs such as tolls.

    If you own the car you may also be able to claim some of the ownership costs (such as depreciation and car registration). There are two methods for working out how much you can claim as a deduction; the logbook method and the cents per kilometre method.

    The logbook method allows you to apportion actual costs between income-producing (work) use and private use based on odometer records. You must keep written evidence of the expenses you incur as well as your logbook records and your odometer records.

    You cannot use this year’s log book for last year’s work-related car expenses. You must keep a logbook during the income tax year for which you want to claim a deduction for work-related car expenses. The log book must be kept for a continuous period of 12 weeks and this period needs to be representative of your travel throughout the year. This log book can then be used for the next five years so long as your business percentages remain the same. You also need to record the odometer readings at the start and end of each income year that you rely on the log book.

    As you did not maintain a log book the only method you can use to claim a deduction for work related car expenses for last year is the cents per kilometre method at a set rate for each business kilometre of 66 cents. You can claim a maximum of 5,000 business kilometres per year using this method and you need to be able to show how you worked out your business kilometres.
  • Hi, I work in an office, however I occasionally need to travel interstate for work (to visit other warehouses/sites). I know that the kilometres that I travel between my home and the office is private use of the vehicle, and no deductions can be claimed. Are the kilometres that I travel from my home to the airport considered private or business kilometres? The travel to the airport would be an extra 10km each way, however in a different direction to my normal place of work. Thankyou.

    rseitz asked 10 months ago
    Yes, you can claim a deduction for car expenses incurred for the total distance of your trip to the airport as this is considered work-related travel. This is provided:
    • your employer does not reimburse these expenses, and
    • you have records relating to the expenses incurred.
    If you do not own the car you can only claim a deduction for actual costs such as fuel.

    If you own the car you may also be able to claim some of the ownership costs (such as depreciation and car registration. There are two methods for working out how much you can claim as a deduction; the logbook method and the cents per kilometre method.

    The logbook method allows you to apportion actual costs between income-producing (work) use and private use based on odometer records. You must keep written evidence of the expenses you incur as well as your logbook records and your odometer records.

    The cents per kilometre method allows you to claim a deduction at a set rate of 66 cents for each business kilometre travelled. You can claim a maximum of 5,000 kilometres per year using this method. You need to be able to show how you worked out your business kilometres and that you are the owner or lessee of the car. For further information see our website.

    Parking and other incidentals can also be claimed as a deduction provided you have evidence of the expenses and they have not been reimbursed by your employer. We have the ATO app’s myDeductions tool that can assist you with your record keeping throughout the year.
  • Hi I work for a government agency and my EB requires the production of medical certificates for paid sick leave (see extract below). Does this mean that I can claim the "gap cost" charged by the GP for a visit (GAP = Total cost - Medicare Rebate) as a deduction. Failure to provide a med cert means that the leave becomes "unpaid" and "unauthorized". So the production of a medical cert is directly linked to income. No more than three consecutive days of personal leave may be taken without medical or other evidence and no more than 12 days in total in a calendar year, unless the Secretary informs the employee that such evidence will not be required.

    Ootha asked 10 months ago
    No. Obtaining a medical certificate is an incidental outcome of visiting a doctor when you are unwell Any costs you incurred in connection with the doctor’s visit are private in nature and not in connection with your income earning activities.
  • Is a pre-employment medical which is required for the job tax deductible?

    hohn asked 10 months ago
    No, medical examinations undertaken in these circumstances are considered as a pre-employment expense and not connected to your income earning activities.

    For a deduction to be allowed there must be sufficient connection between the expense you have incurred and the earning of your employment income.

    The expense must give rise to or help produce assessable income for it to be deductible.
  • Hi, I had to undertake a medical assessment to see if I was fit to work for an airline, this was a compulsory assesment required to be successful in gaining employment. Can I claim it on my tax? Thanks in advance

    Carley.smith@qantas.com.au asked 10 months ago

    No, medical examinations undertaken in these circumstances are considered as a pre-employment expenseand not connected to your income earning activities.

    For a deduction to be allowed there must be sufficient connection between the expense you have incurred and the earning of your employment income.

    The expense must give rise to or help produce assessable income for it to be deductible.


  • When my neck get hurt and work in the front of computer? If I go to massage my neck, can I get tax deduction?

    Helensummer asked 10 months ago
    To claim a work-related deduction:
    • 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.

    If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.

    You would not be entitled to claim the cost of a massage because:
    • whilst the injury may occur as a result of your job, it was not directly related to earning your income; and
    • it would be considered to be wholly private in nature.
  • When you have had a work related injury and are on workers compensation at the time... Can you claim for parking fees and travel expenses when attending appointments related to this injury? If yes, what would this come under?

    Estella asked 10 months ago
    Yes, you can claim for parking fees and travel expenses that you incur when attending appointments related to your workers compensation injury. You can claim these expenses at D2 Work-related travel expenses 2017. In calculating your claim, if part of your travel is for private purposes then you must exclude any private usage.
  • Dear Sir / Madam I currently receive a travel allowance from my employer whenever I travel to a client's site. The allowance is taxable and has been reported in my tax returns. However, given that I have to travel 180 km to and from the client's site every time using my wife's car, i incur a lot of expenses on petrol. I was just just wondering if it's possible to reduce the taxable allowance by including the fuel costs. That is, while lodging my tax, can I include the cost of fuel in the work related travel expense so that this is deducted from the overall taxable income? Thanks for a quick reply.

    Ashu asked 10 months ago
    If you incur an expense for a work-related purpose you can claim it as a tax deduction.

    Because you are not the owner of the car you are using for your work, you cannot claim the petrol expense you have incurred at D1 Work-related car expenses 2017.

    You can claim the work-related petrol expense at D2 Work-related travel expenses 2017. Remember, you must have actually incurred the cost in order to claim this expense as a deduction and you must exclude any private usage.
  • I am following Simplified rules for depreciation. my general pool value is $25000. I sold an asset of the general pool at $ 27500. what will be impacts related to capital gain and business income due to sale?

    Mahesh Vanzara asked 10 months ago
    You don’t incur a capital gains liability for the disposal of a depreciating asset that you’ve depreciated under the simplified depreciation rules.

    Instead, when you sell a depreciating asset from your general pool, you need to reduce your pool by the asset’s termination value multiplied by the taxable use proportion. In your case, if you used the asset 100% for your business this reduction would be the sale price of $27,500.

    If you have a negative balance in your pool as a result of the sale you will need to include an amount in your assessable income to allow for any excess between what you receive for the asset over what you’ve claimed as a depreciation deduction.

    Further information on calculating pool events is available on our website. For more information on ‘Assessable income adjustment’; go to Step 3.
  • Can I claim rego and cost of vehicle on my bas I need to know what I can claim on my bas basically Cheers

    Kazas asked 10 months ago
    You must be registered for GST to claim GST credits on your (Business Activity Statement) BAS.

    You can claim GST credits if the following four conditions apply:
    • you intend to use your purchase solely or partly in carrying on your business and the purchase does not relate to making input-taxed supplies
    • the purchase price included GST
    • you provide, or are liable to provide, payment for the item you purchased
    • you have a tax invoice from your supplier (for purchases more than $82.50).

    For example, registration is GST-free so you would be unable to claim a credit on your BAS, however, the third party insurance would have a GST credit that could be claimed in line with the business usage percentage of the vehicle.

    Most tax invoices will list the amount of GST paid on the invoice.

    For cars designed to carry a load of less than one tonne or fewer than nine passengers, if the purchase price is over the luxury car tax limit of $65,094 or $75,526 for fuel efficient vehicles for the 2017-2018 year, the amount of Input Tax Credit able to be claimed in your BAS is limited to the above thresholds. Cars with a tonnage over one tonne, or that are designed to carry nine passengers or more, are not subject to the luxury car tax limit and you are able to claim the full amount of input tax credits.

    You will need to maintain a car log book if your car has a private usage component.
  • Hi, how do I log down captial gains/losses on the ATO app?

    ChrisH asked 10 months ago
    You cannot record capital gains or losses in the ATOapp. You will want to use the Capital gains tax record keeping tool. Information on this tool, including how to access it is available from here. For more information on the methods available to work out your capital gain, visit this page.
  • I invest in ASX listed companies and have negligible other income. A company I have a major investment in (Over $1m) has a mine that I would like to visit in an African country. Q1. If I visit this mine are my travel costs tax deductible against income, primarily capital gains? Q2. If I included some days of leisure in the trip how do I proportion the costs? For example the airfare to and from Africa... Thank you in advance

    Investor_Doug asked 10 months ago
    Generally you are only able to claim a deduction for expenses incurred in gaining or producing your assessable income tax or capital gains.

    From the information provided you have not told us the purpose of your visit to the mine sites, only that you have invested shares in a company that owns these sites. You may be able to claim a deduction for travel expenses where you need to travel to service your investment portfolio, for example, to consult with a broker or to attend a stock exchange or company meetings.

    You can only claim a deduction for the full amount of your expenses where the sole purpose of the travel relates to the share investment. Where those expenses are incurred for both investment and private reasons those expenses would need to be apportioned so that a deduction is only claimed for that portion of the trip that directly relates to your income earning activities.
  • How can I use my pre tax dollars to pay for a cleaner. I work from my home and regularly conduct meetings at my house.

    Susan asked 10 months ago
    Generally cleaning of your home is considered to be a private or domestic expense that cannot be claimed in as a deduction or in pre-tax dollars.

    If you are self-employed:
    You may be entitled to claim an apportionment of the cleaning costs which directly relate to the parts of your home which are exclusively for business as a business deduction. If the area is used for private purposes as well as for business purposes you would not be entitled to a deduction for that area as the expense is considered to be a private or domestic nature.

    If you are an employee:
    If your employer requires you to hold client meetings at home, as part of your employment contract, you may be able to seek reimbursement of the expense from your employer. Alternatively you could deduct a percentage (apportionment) of the cleaning and claim a deduction for your home office and other areas of the house that are used exclusively for work. If the area is used for private purposes as well as for work you would not be entitled to a deduction. Further information on home office expenses can be found on our website.

    If you are not required, as part of your employment contract, to meet with clients in your home and this is a personal choice you have made, you cannot claim a deduction for cleaning expenses as this is considered a private expense.

    If your employer allows you to salary sacrifice the cost of a cleaner, your cleaning could be paid in pre-tax dollars; however it will be considered a fringe benefit paid to you as an employee. This may have Fringe Benefits Tax consequences for your employer.
  • I HAVE SPEND $2500 FOR MY WIFE TO DO CERTIFICATE 3 IN LAST YEAR(2017-JANU) . SHE DOSENT WORKED ON LAST YEAR , GOT A JOB ON JULY 2017 .CAN I TAX CLAIM THE MONEY WHICH I HAVE SPEND FOR HER EDUCATION THIS YEAR ? thanks nison

    nison asked 10 months ago
    No, you are not able to claim self-education expenses for your wife against your income. Further information regarding self-education expenses is on our website.
  • Hello, I am currently a full time worker employed by a company paying PAYG tax. I am considering purchasing a car and part time uber driving to supplement my income. I understand I will need to register for GST and obtain an ABN, as well as retain GST and complete a BAS. My question is this, if I purchase a car for this purpose and wish to depreciate it for tax purposes, is the depreciation claimable against my entire income tax (earned from my payed company role and my uber job), or only on the amounts earned via UBER?

    Faith asked 10 months ago
    You are correct that you need to treat your Uber driving as a business and meet the taxation obligations for GST and Income Tax.

    Generally, you will claim the depreciation of your car against your earnings as an Uber driver. Any deductions relating to the use of your car as an Uber driver will be limited to that work-related use and will need to be apportioned to exclude any personal usage of the vehicle.

    If your Uber driving business is in a loss situation, the non-commercial loss rules may apply. The non-commercial loss provisions relate to offsetting your business income against other income. You need to pass the relevant four tests to claim the deduction against your employment income.
  • Hi. I work as a catering manager. Quite often recently I have needed to catch Uber's from work to pick up goods that could not be delivered to the venue. Can I claim these Uber trips on my tax return?

    Stuart asked 10 months ago
    As a catering manager, if you incur Uber expenses that are work related, for example, to collect supplies that have not been delivered, you will be able to claim this as a work related travel expenses. You will need to keep records of the trips undertaken.

    However, you must have paid the Uber expenses yourself and not have been reimbursed for them by your employer.
  • why does the online tax form not take my stated deduction off my taxable income? I successfully input my donations and work related expenses, the site acknowledges them, but when I read my tax refund estimate these stated deductions are not ever included in the estimated return. Why- the always have been in years previous?

    vladmyra asked 10 months ago
    The ‘prepare’ page in myTax (page 4) provides a summary of your tax return. Moving down the screen, this starts with income followed by deductions. If you include deductions, such as donations and work related expenses, you will be able to see these summarised on this page so you know they are included in your tax return.

    Deductions correctly entered and saved will result in a reduction of the taxable income. The ‘more details’ section of the Estimate presented prior to lodgment shows the taxable income figure, which is reported income less any deductions claimed.

    To check details of a tax return, after lodging you can go on-line via myGov and through the ATO link view the lodged return using the Tax menu and then the Income Tax submenu followed by the View or amend returns option. The details of the income and deductions, for example, are then visible. If you still believe the return is not accurate you can amend the lodged return.
  • I'm a PhD student who receives a stipend salary paid fortnightly, and I am also a casual teaching assistant at the university within my department. If I need to travel overseas to do my fieldwork once each year, or attend professional development conferences, can I claim my travel expenses?

    Mary5 asked 10 months ago

    It is difficult to answer this question from this limited information. For a deduction to be allowed there must be sufficient connection between the expense you have incurred and the earning of your employment income. That is, the expense must give rise to or help produce assessable income for it to be deductible. Our Early Engagement process allows you to provide further information and to talk to us about your situation. To assist you in knowing what sort of information that might be useful, we also have lists of information we usually need to properly consider self-education and overseas travel expenses.

  • I am a shiatsu therapist (body worker) - as I need to maintain physical health and well being in order to continue to do this work, is it possible to claim a deduction for the monthly myotherapy treatments I receive?

    RM asked 10 months ago

    No.  In order to claim a deduction the expense must have a direct connection with the income you earn from your employment.  Given medical expenses relate to a personal medical condition and are considered private in nature no deduction would be allowable.

  • What about a photographer who has a home office and home studio but frequently travels to other locations to work and photo-shoot. Can that travel be claimed as a travel expense? And furthermore do tripods cameras and lenses etc represent bulky tools?

    Goodo asked 11 months ago
    Travel from home to shoot location – home business
    If you are carrying on a home-based business (and you don’t have an off-site office) you can generally claim the cost of trips between your home and other places if the travel is for business purposes, such as working with a large range of clients at a range of locations, which don’t constitute a regular or normal place of work.

    Travel from home to shoot location – employee photographer
    You can claim work-related travel expenses that you have incurred in the course of performing your job as an employee. This includes the cost of trips from your home to an alternative workplace and then to your normal workplace or directly home. For example, if you travel to a client's premises to work there for the day. This does not apply where the alternate workplace becomes a regular workplace.

    You can use the cents per kilometre method or logbook method, depending on what suits your business structure best, when claiming motor vehicle expenses.
    For more information on home-based businesses, see https://www.ato.gov.au/business/income-and-deductions-for-business/in-detail/home-based-business/?page=3#Claiming_your_business_expenses. For employees, see: Travel between home and work and between workplaces.

    Bulky equipment

    In some cases, transport of bulky equipment’ may provide an exception to travel expenses not being deductible.

    There are no hard and fast rules that define what size equipment must be to be considered ‘bulky’. It is instead a question of fact and degree. Consideration is given to the size and weight of the equipment, whether the equipment is considered cumbersome or not easily portable, whether the transport of the equipment is related to a personal choice and whether there is secure storage for the equipment at the workplace.

    For example, in one case, a toolbox which measured 57cm x 28cm x 25cm and weighed 27 kg was considered sufficiently bulky when also considering the workplace did not have secure storage.

    In another case, the combination of the items below was not considered sufficiently bulky to impede easy transport and the travel was held to be private in nature.

    • A duffle bag measuring 75cm long x 55cm wide x 50cm deep and weighing 20 kilograms when packed.
    • A suit bag which weighed 10 kilograms when packed.
    • A briefcase sized navigational bag which contained charts, work manuals and study materials.
  • Are medical examinations and site induction costs associated with obtaining a new job deductible?

    Carissa asked 11 months ago
    No, medical examinations and site induction costs are considered pre-employment expenses. For a deduction to be allowed there must be sufficient connection between the expense you have incurred and the earning of your employment income. That is, the expense must give rise to or help produce assessable income for it to be deductible.
  • Hi, how do I put deductions into my tax return if I didn't use the app through the year please?

    Xenamojo asked 10 months ago

    Information on how to add and review deductions in myTax is available in this video

  • I am about to buy a dog which is going to become the support dog at the school where I work. The dog will live with me but come to school each day and will work alongside our support team as a support dog for students. I will have a letter from the school confirming the dogs appointment to the school. Will I be able to claim anything back for the cost of the dog as a work expense, or claim anything for vet bills/food/insurance etc. If so what category would this come under?

    C Grant asked 11 months ago

    Based on the information you have provided, you may not be able to claim a tax deduction for the expenses incurred in relation to your proposed purchase and upkeep of a support dog for the school you work at because it may be considered a pet.

    The tax law considers the choice by an employee to use their pets in a work environment to be a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered to be incurred in earning assessable income.

    However, if you are required to have the dog as part of your job (and it is not a personal choice you have made) you may be able to claim a deduction for expenses incurred in the upkeep and training of the support dog.  However, if your employer reimburses you for any of the costs, you would not be entitled to a deduction.

    If you claim a deduction you may be required to provide evidence to demonstrate that you meet the deduction requirements. That is, that the expenses were incurred in gaining or producing your assessable income and were not of a private or domestic nature.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances of the support dog you intend to purchase.

  • Can i claim the tax free threshold while driving for uber eats . I also have a abn number

    Wayne johnstone asked 11 months ago
    We generally require that you only claim the tax free threshold once, and this is claimed in the TFN declaration you lodge with the payer who usually pays you the highest salary or wage.

    However, if you are treated as an independent contractor you will not complete a TFN declaration. Instead, you may be asked to provide your ABN. When you provide your ABN, generally no tax is withheld from your payments. More information about working as an employee or a contractor can be found here.

    If you are driving for UberEATS and earning less than $75,000 per year, you don’t need to be registered for GST. More information can be found here.
  • I'm a volunteer surf life saver. Can I claim the cost of travel to and from the beach if I travel there only to volunteer? Is there anything else I can claim, such as the cost of laundering the uniform?

    Jonesy asked 11 months ago
    No, given you work as a volunteer surf life saver you cannot claim the cost of travel or the laundering of your uniform. You can only claim a deduction if it is directly related to earning your income and is not considered capital or private in nature. Even if you were employed as a surf life saver you generally cannot claim travel expenses between your home and your workplace as this is considered to be a private expense.
  • Hello, I am a sole trader and drive to my work office in the city centre. On my monthly office lease invoice, a fee for parking is listed, which I pay at the same time as my lease payment. Can the parking expense be claimed as a work expense? I work mostly from my work office, and do some administration and client phone calls from my home office.

    smalltrader asked 11 months ago
    Yes, but only to the extent that you use the car during the day for work purposes. For example, if you just drive your car in from home, park it there, and then drive home, then the cost of office rent relating to the car park is not deductible as it is just part of private costs enabling you to travel to work. To help illustrate, some people choose to catch the bus to work, while other people drive their car to work and pay for public parking. In both of these examples, the costs are not deductible.

    However, the parking related costs of your lease payment could be deductible in work related situations such as where your work vehicle is kept in the car park and driven to client or meeting places but not used for daily commuting. If the amount of the lease that you pay gives you a guaranteed parking space, but you never use it, then there would be no private component to your lease payment and all of it would be fully deductible.
  • I'm currently using my personal mobile for a number of work-related calls. How do I best record and figure out the percentage of my monthly phone bill (which I'm paying for, not my work) would be claimable as a deduction? Am I able to claim for both calls I make AND receive?

    lin_da_l asked 11 months ago
    Provided you have paid for the cost of the mobile phone service and have records to support your claim, you may be able to claim a deduction if you use your own phone for work purposes.

    If your claim exceeds $50, you must keep records for a 4 week representative period. Records may include diary entries, including electronic records, and bills. Evidence that your employer expects you to work at home or make some work-related calls on your personal mobile phone will also help you demonstrate that you are entitled to a deduction.

    You must apportion the work use of your phone using a reasonable basis. This will depend on your level of use, the type of bill you receive and whether the phone has other services bundled in the same contract. For more information on the methods available to claim your phone expenses, see Claiming mobile phone, internet and home phone expenses.

    You cannot claim for the cost of inbound calls as you do not incur an expense for these calls.
  • Hi, my company has a education re-imbursement benefit scheme. Whereby, I pay the course provides the full fees (incl GST) and then they re-imburse me the full amount. Should they be re-imbursing me by adding this amount to my pre-tax salary so I am effectivelty paying income tax on the re-imbursement or as a expense re-imbursement separate to me pre tax salary, whereby I have it as a fringe benefit, and pending individual circumstance become liable for FBT when the tax return is completed every year?

    sugs asked 11 months ago
    Reimbursements are payments made to a worker for actual expenses already incurred, and the employer may be subject to fringe benefits tax (FBT). If the reimbursement is covered by FBT, the amount is not assessable income to the employee, and the employee cannot claim a deduction for the expense.

    If you would like more information about reimbursements, it can be found here.

    If you would like more information about FBT, it can be found here.
  • Can I claim serology/blood tests required for work as a deduction?

    LT123 asked 11 months ago
    Generally medical expenses have no direct connection to the gaining or producing of assessable income and a deduction is not allowable. Medical expenses are usually incurred prior to the earning of assessable income or they relate to a personal medical condition and are private in nature.

    If the medical expenses are required throughout the period of your employment (i.e. the costs are incurred in gaining or producing your assessable income), you can claim a deduction for the cost of the blood tests. On this basis you are entitled to claim a deduction for the expenditure you have paid net of any reimbursement from your employer, Medicare or Private Health insurance.
  • I am a sole trader and undertake a number of business activities including business services/ consulting/ event management, retail and ceramic manufacture. My ABN is registered under my name and I do all activities under this ABN. Currently they are shown as different business activities on my tax return, but I would like to have them all in one. How do I choose the appropriate business type when I am doing various activities under the ABN? I have now purchased accounting software and want to use it for all activities.

    Curious George asked 12 months ago
    ‘Thanks for your question. If your business covers a few activities use the code that gives you the highest gross income or smallest loss. If you have multiple activities, the amounts are added together and reported as one amount under your main business activity. You would then only need to separate items further if you have made a business loss, which is included separately for each activity.’
  • Are education fees paid by a Temporary resident for his children's schooling under the Temporay Residents Program , tax deductible against his australian income. If so can it be taken under work related expenses.

    NWaje asked 11 months ago
    To claim a deduction, an expense must have a connection with income producing activities, such as work expenses, and not be a private expense. The cost of a child’s school fees are not related to the earning of income and are private. No deduction is allowed.

    For more information please see the webpage deductions-you-can-claim.
  • Where's do I lodge my investment property expenses in the myDeductions app?

    Blake Nuto asked 11 months ago
    “Thank you for your feedback. Your suggestion will be considered in future updates to the myDeductions tool. At this stage you can see the breakdown in a CSV file by using either the backup or share via email functions.”
  • myDeductions doesn't seem to differentiate between personal and business use under car trips. So do I just add business related car trips in the app? Do I still need to maintain a pre-printed log book to calculate the total percentage of business use?

    Larry asked 11 months ago
    You do not record your personal trips in the myDeductions tool. You only enter trips that are related to earning your income.

    You can record a new logbook in myDeductions. Or if you have previously recorded a logbook elsewhere (which is still valid), you can enter these logbook details into the ATO app (myDeductions tool). They can form part of your upload to your tax return at the end of the financial year.

    To create a logbook in the app, you need to record the following:

    • the date the logbook period begins and ends
    • the car's odometer readings at the start and end of the logbook period - this provides the total number of kilometres travelled during the period
    • all trips taken for employee - work, employee - self-education or business purposes. You do not need to record private trips.

    You can access more information on recording trips via the help section in the myDeductions tool (Click on the ‘?’ symbol).
  • I do community nursing therefore am required to travel to multiple clients throughout the day, my clients change every day. My work pays for my kms from my first client to my last client. Am I able to claim my kms from home to my first client, then from my last client to home again? Am I able to claim depreciation for my vehicle?

    Nikesha5 asked 11 months ago
    Yes, while travel between home and your place of employment is generally considered to be private in nature and therefore not deductible, a deduction can be claimed for travel between home and work (and work and home) when your work is considered to be ‘itinerant’ because of having ‘shifting places of work’.

    Generally, the question of whether a nursing employee’s work is itinerant is to be determined according to an individual’s circumstances. It is the nature of the nurse’s duties and not their occupation that determines if the nurse is an itinerant employee. Some factors that may indicate that you may claim a deduction for travel expenses where you have shifting workplaces are:

    • Travel is fundamental to your work (and it not just convenient for you or your employer).
    • You have a ‘web’ of places you are required to travel to throughout the day.
    • You continually travel from one place of work to another.
    • You are often uncertain about the location of your work site.

    The ATO website describes factors indicating when your work is itinerant.

    Paragraph 152 of Taxation Ruling TR 95/15 provides the following example where the travel between home and shifting places of work is an allowable deduction:
      Rebecca, a nursing employee who is employed by a nursing agency, is regularly dispatched by her employer to a new location each day. On occasions she may stay at a location for a few days, but quite frequently she has to travel to more than one location on a given day. The work locations are all at varying distances from her home and she often receives only short notice of the location of her next job. A deduction is allowable for Rebecca's travelling costs as she has shifting places of work. The reasons for this view are:
      • Rebecca does not work to any regular pattern.
      • There is no long term plan by which she can predict what will be required of her in the future.
      • There is no certainty as to the range of work locations she will attend over a period.
    Other useful sources of information on home to work travel expenses found on ato.gov.au include:
    Depreciation
    Where you are car is used in undertaking tax deductible travel, you can claim for the depreciation expenses of a car that you use in the course of your travel. Note that if you are paid by your employer at a cents per kilometre rate and declare these payments as an allowance, you do not have to claim car expenses at the cents per kilometre rate. You can choose to use the ‘log book method’. If you choose to use the log book method to claim your car expenses, rather than the rate per kilometre method, you can claim depreciation expenses of your car, which are described for tax purposes as ‘decline in value’ deductions. (If you claim car expenses using the rate per kilometre method, then you cannot claim depreciation.)

    A further explanation of car expense deductions is found at D1 Work-related car expenses 2017.
  • If I am working at a place that is not my usual place of employment, lets just say I drive to the Sunshine Coast (where my usual place of employment is in Brisbane) to attend a meeting with a client in their office, in my own vehicle, is that trip eligible for the cents per kilometer deduction? I have a log book of dates and distances used to calaculate the dollar value and a work outlook diary that shows meeting dates corresponding with the travel log.

    Frank42 asked 11 months ago
    You can claim work-related travel expenses that you have incurred in the course of performing your job as an employee. This includes the cost of trips from your home to an alternative workplace and then to your normal workplace or directly home. For example, if you travel to a client's premises to work there for the day. This does not apply where the alternate workplace has become a regular workplace.

    There are two methods available to claim a deduction for work-related car expenses:

    • The cents per kilometre method
    • The log book method.

    For the 2016–17 income year, when using the cents per kilometre method, individuals use 66 cents per kilometre for all motor vehicles.

    The Commissioner of Taxation will determine the rate for future income years. You can claim a maximum of 5,000 business kilometres per car using this method. You don't need written evidence but you need to be able to show how you worked out your business kilometres (for example, by producing diary records of work-related trips using the material you have described in your question).

    For more information, see Car expenses.
  • My employment is at a particular site (as per employment contract), but regularly I am rostered to work at an alternative site. Am I able to claim travel related expenses (eg cents per km method) for the travel to the alternative site? Occasionally I am required to travel between sites during which is obviously allowable as a deduction, but generally I would spend the whole day at the alternative site. My employer pays travel time to/from, but no car or travel allowance when working at the alternative site.

    James09 asked 11 months ago
    In general you can claim the cost of travelling between your home and an alternate workplace when it is required as part of your employment. This does not apply where the alternate workplace becomes a regular workplace. Travel from your home to your regular workplace is considered private home to work travel and is therefore not deductible.

    Based on the information that you have provided the alternate site that you travel to has become a regular workplace and given this the travel from your home to this site will be private home to work travel.

    Some further information on travel deductions is available on the ATO website’s travel between home and work and between workplaces page and also within draft Taxation Ruling TR 2017/D6: Income tax and fringe benefits tax: when are deductions allowed for employees' travel expenses?. Example 2 of this draft ruling is applicable to your circumstances.
  • I am a sales manager who is given a motor vehicle allowance and use my vehicle 5 days per week for my employment. I carry boxes of marketing material and display goods to market to customers . I also stay away from my home overnight at least 2 nights per week where my employer pays for my accommodation, breakfast and dinner only.

    andrew shennan asked 11 months ago
    If you receive a motor vehicle allowance from your employer, it is assessable income and the allowance must be included on your tax return. The amount of your allowance does not influence the amount of deduction that you can claim. If your employer reimburses your expenses this is not an allowance and you do not have to declare the payments made by the employer, but you cannot claim a tax deduction where you are reimbursed or you did not incur the expense. Where your employer pays for your meals you do not have to declare these benefits in your tax return. Where you have incurred unreimbursed car expenses in earning your income you may be entitled to claim deductions for various car expenses, to the extent that they are work-related. For examples of general categories of deductible and non-deductible car expenses, please see the car expenses page on our website.

    To the extent that you incur unreimbursed travel expenses such as food while having to stay away from home overnight please see Other travel expenses for further information.
  • I USE MY CAR TO COLLECT MAIL ONTO THE WAY TO WORK AND DROP IT OFF AFTER WORK AND ALSO NEED TO GO TO A STORAGE SHED ON OCCAISIONS TO COLLECT ACHIVED FILES, CAN I CLAIM CENTS PER KILOMETER FOR THIS TRAVEL?

    asked 11 months ago
    You can't claim tax deductions for the cost of driving your car between work and home just because you do minor work-related tasks – for example, picking up the mail on the way to work or home.

    For further information, please see the travel between home and work and between workplaces on our website.
  • I worked remotely for one company from my home office in the morning (not my own business, but as a remote employee), and then was required to drive into the office for a second employer for the afternoon every weekday. Can I claim travel between my first workplace and second?

    RubyRuby asked 11 months ago
    Generally, you cannot claim travel expenses from your home to your workplace, unless you are travelling between home as a base of employment to continue that work for the same employer at that workplace.

    Trips between two separate places of employment when you have a second job are not tax deductible if one of those places is your home. These trips are private travel and not tax deductible.

    Please see car and travel expenses 2017 for further information.
  • I'm an IT Professional who travels between sites of varying distances on a daily basis, I use my own car and all expenses are covered by me and not my employer. Am I eligible to claim travel deductions?

    wipwire asked 11 months ago
    You can claim a deduction for work-related car expenses if you use your own car in the course of performing your job as an employee, for example, to:

    • attend conferences or meetings
    • deliver items or collect supplies
    • travel from your normal workplace to an alternative workplace and back to your normal workplace or directly home
    • travel from your home to an alternative workplace and then to your normal workplace or directly home (for example, if you travel to a client's premises)
    • perform itinerant work.

    You may be able to claim travel expenses from your home to workplaces, if you are an itinerant worker.

    The following factors may indicate you do itinerant work:

    • Travel is a fundamental part of your work, as the very nature of your work, not just because it is convenient to you or your employer.
    • You have a 'web' of work places you travel to, throughout the day.
    • You continually travel from one work site to another.
    • Your home is a base of operations – if you start work at home and cannot complete it until you attend at your work site.
    • You are often uncertain of the location of your work site.
    • Your employer provides an allowance in recognition of your need to travel continually between different work sites and you use this allowance to pay for your travel.

    For further information, please see the car expenses and travel between home and work and between workplaces pages on our website.

    However if you are a business or contractor, please see Information technology professionals – deductions you may be able to claim.
  • I work from home, where my office is, and for which I claim "home office expense". I also have to go out to see people elsewhere, either in their homes or in some other location. Because my office is at home, and I work from home, can I claim for my travel?

    JimS asked 11 months ago
    Generally, if your travel is connected with earning your assessable income and you do not have an office workplace separate from your home, then expenses such as travelling from home to have a meeting with a client as part of your work would be treated as work-related travel.

    For further information, please see the car expenses page on our website. For employees the following guidance applies: Travel between home and work and between workplaces. For non-employees, visit this page.
  • I use my car to travel to different client site's every day as Iam a software trainer, can i claim for this ?

    DM asked 11 months ago
    To claim a deduction for your car expenses, the travel undertaken must be related to the earning of assessable income. Travel between one workplace and another is considered work-related, and the costs associated may be claimed as a deduction, where neither of these locations are your home.

    Ordinarily, travel between home and work is considered private in nature and a deduction is not allowed. However, if your work is considered ‘itinerant’, you may be able to claim the travel from home to work as a deduction.

    Factors that may indicate your itinerancy include:

    • Travel is a fundamental part of your work, as the very nature of your work, not just because it is convenient to you or your employer.
    • You have a 'web' of work places you travel to, throughout the day.
    • You continually travel from one work site to another.
    • Your home is a base of operations – if you start work at home and cannot complete it until you attend at your work site.
    • You are often uncertain of the location of your work site.
    • Your employer provides an allowance in recognition of your need to travel continually between different work sites and you use this allowance to pay for your travel.

    For more information on car expenses, substantiation and itinerancy please see the webpages:
  • I have a question on claiming motor vehicle expenses via logbook method: At most times, I am required to carry confidential patient files, stethoscope and other medical equipment, medical emergency/ aid kit and laptop. My question is simply: - does the above meet 'Bulky'? - what constitutes 'Bulky'? Ie. specifications (size, width, length etc) for it to be regarded as bulky? - Can the the trip from work to home logged as business Kms?

    SG asked 11 months ago
    Based on the limited facts provided we cannot determine whether the equipment you describe would be classified as ‘bulky’. If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • My question relates to vehicle depreciation. I bought a new car in June 2015. In August 2017 I started Uber driving. My question is can I claim depreciation on the car from August 2017 onward or could I only have applied for depreciation had I been Uber driving before I bought the car?

    Tom1212 asked 11 months ago
    For income tax purposes, a depreciating asset is taken to ‘decline in value’ (depreciate) when you first use it in any way, including privately, or install it ready for use. For a car, decline in value begins when you purchase it. The purchase price of the car is used as the starting point for calculating yearly ‘declines in value’ so that the cost of the car is taken to decline in value over its effective life. This means that your car began to ‘decline in value’ for tax purposes from June 2015. There are two methods for calculating the yearly decline in value: calculating-the-decline-in-value-of-a-depreciating-asset.

    You are allowed a tax deduction for the income producing use proportion of the yearly decline in value of your car. As you started to use the car for income earning activities from August 2017 you can claim the decline in value parts to the extent that you used it for Uber driving rather than privately during that year. For more information on how to calculate the income producing use apportionment of the decline in value of your car using the logbook method , see Car expenses.
  • My husband works from home in a self employed capacity, has an ABN, and calculates his tax on this earning separately. He also works for a company in another state - being paid a salary, and flies to and from both work places on a regular basis, personally paying for all of these flights and not being reimbursed for the travel. He often stays overnight in the other state (the accommodation is covered by his work) and pays for his own food when away. How would he go about claiming for travel, and overnight food costs, while traveling for his salaried job?

    Amazonia asked 11 months ago
    Based on the facts you have provided, your husband will not be entitled to claim a deduction for the travel or food costs relating to his interstate employment.

    The travel is required for your husband to commence work, or to depart after work is completed. These travel and meal expenses are not incurred in gaining or producing your husband’s assessable income as they occur either before or after the earning of assessable income. The expenses are of a private or domestic nature, reflecting your husband’s private choice about where to live.

    If you require further information, please visit our Travel between home and work and between workplaces webpage.
  • I don't own a car but I drive my mum's car to offsite meetings from work, am I able to claim this even though I don't own the car. I am covered under the car insurance - is this sufficient?

    madison02 asked 11 months ago
    You can’t claim a deduction for travel from your home to work, as it occurs before you begin earning assessable income. However, in your circumstance, you can claim a deduction for the travel between your normal workplace (the site) and an alternative workplace (offsite meetings).

    As you don’t own the car, you can only claim the direct costs (such as fuel) as a travel expense. If you claim a deduction for your car expenses and it is reviewed by us, you will be required to provide evidence that you have met the substantiation requirements.

    For more information on car expenses and substantiation, please visit our car expenses webpage.
  • Can a family day care operator claim food for their pets if the pets are part of their educational program?

    Fdcq asked 11 months ago
    Based on the information you have provided, you cannot claim a tax deduction for the expenses incurred in relation to your pet.

    The tax law considers the choice by an employee to use their pets in a work environment to be a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.
  • I run a small dog walking business to supplement my welfare check that i get. I have a disability that prevents me from working more than 2-3 or so hours a day. I am serviced by a disability service provider. Due to the amount of walking i do i have started to develop arthritis in my feet as well as hip and groin and back issues. I am a young man. Can i claim therapeutic massage / chiropractic treatment as a tax deduction. With out these medical services i will have to stop working soon. I dont know what i am going to do with out the extra income i earn.

    mrdann asked 11 months ago
    In order to claim an expense as a deduction the following conditions need to 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 prove it.
    • it must not be private or domestic in nature.

    If any of these conditions are not met then you will not be entitled to the deduction.

    Expenses for therapeutic message and chiropractic treatment are considered private in nature and will therefore not be deductible.

    For more information, please see deductions you can claim.
  • Hello. I salary sacrifice $3k out of my $22k car allowance as a sales rep in order to get fuel cards from the company. The risk being if I spend more than $3k PA sacrificed, the company still pays for the fuel cards and visa versa. The remainder of the car allowance I spend and/or keep for upkeep my car which I wholly own. I am not reimbursed for these non fuel expenses, this is why I am paid a car allowance. My yearly fuel expenditure is nearly exactly the $3k I sacrifice to get fuel cards. In previous years I claimed as a deduction all car related expenses including fuel. Now I have fuel cards, do I still claim fuel in my car deductions? Or because I sacrifice for the fuel cards pre-tax do I not do so?

    Benicio asked 11 months ago
    Based on the information you have provided, no, you would not be eligible to deduct the salary sacrificed amount.

    The effect of your salary sacrifice arrangement is that your employer is incurring the fuel expense. You cannot claim a deduction for the fuel expenses because you did not incur the expense.

    Further information on salary sacrificing arrangements can be found here on the ATO website.
  • I drive a HR tilt tray for a living i use my personal mobile phone each and every day i work..my company says they pay me thirty dollars a month phone allowance..i see no evidence of this in my pay slips.

    Dazza33 asked 11 months ago
    You will need to discuss what is included on your pay slips with your employer. You can find some further information on what employers must include on pay slips here on the Fair Work Australia website.

    If you are considering claiming a tax deduction for your mobile expenses then you will need to keep records to evidence your claim. Even if you receive an allowance this does not automatically entitle you to a deduction and vice versa you do not need to receive an allowance to claim a deduction. You can find further information on claiming a deduction for mobile phone expenses here on the ATO website.
  • I have downloaded the myDeductions app and have been recording car trips as point-to-point. Is this enough for filling in information or do I have to start a logbook of some sort as well?

    UnsureDriver asked 11 months ago
    You can use the point to point method if you plan on claiming the cents per kilometer method. If you plan on travelling over 5,000 kilometers then you will need to create a logbook and use the odometer method. Further information is available on the ATO’s website.
  • Hi I am a foster carer for dogs. Is their expenses tax deductible?

    Teganb84 asked 11 months ago
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income.

    If you are a volunteer foster carer, you will not be able to claim tax deductions for the money you spend caring for the dogs. Payments to volunteer foster carers are made to help meet the costs associated with providing foster care and therefore not assessable income. Consequently, the money you spend caring for the dogs will not be tax deductible.

    If you are earning assessable income by foster caring for dogs, then the money you spend caring for the dogs will be tax deductible.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • So tried to claim taking tools to work and home everyday as there is no secure place to keep my tools as of day shift/night shift it would be easy for someone to break into my toolbox and take over $700 worth of tools. But it is asking for my award amount. What is the information they need for award amount.

    Tylorc96 asked 11 months ago
    Award transport payments (award amount) are allowances covering either transport expenses or car-expense reimbursements that are paid by your employer under an industrial law or award.

    If you have been paid an award amount, your union or employer will be able to tell you how much you were paid. Award transport payments are assessable income and you must include any payments as income on your tax return.

    If you have incurred:
    • transport expenses covered by these payments, you can claim a deduction at item D2
    • car expenses covered by these payments, you can claim your deduction at either item D1 or item D2.

    If your total claim for work-related transport or car expenses is no more than the award amount you received, you can claim the total deduction at item D2 on your tax return. You do not need written evidence.

    If you have a claim for additional kilometres not covered by the award transport payment, you can make the claim at item D1 on your tax return but you can only use either the:
    • logbook method (you will need written evidence), or
    • cents per kilometre method.

    Further information is available at our website.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I am a Vet and my pet dog is also a blood donor used at my workplace whenever required. Are his expenses tax deductible?

    Jasmine24 asked 11 months ago
    Based on the information you have provided, you cannot claim a tax deduction for the expenses incurred in relation to your pet dog.

    The tax law considers the choice by an employee to use their pets in a work environment to be a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the deduction requirements. That is, that the expenses were incurred in gaining or producing your assessable income and were not of a private or domestic nature.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • My wife buys a tax deductible item against her taxable income, but pays for it with my money, does she claim the tax deduction on her tax return or do I claim it on mine?

    TrentG asked 11 months ago
    In order to claim a work-related expense as a deduction the following conditions need to 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 prove it.

    If any of these conditions are not met then you will not be entitled to the deduction.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the deduction requirements. In this instance we do not consider the source of the funds used to complete the transaction as relevant in determining if the deduction requirements have been met.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I am entering my income including GST, and my expenses likewise. Is it possible to see a breakdown of these figures with the GST separate, as I would not count GST as part of my income! So for example on the records screen, it would be much better if it had columns for income and incoming GST, and expenses and outgoing GST, This would greatly increase the utility of the app for me. As it is, I can only see the GST component by tapping through to the individual transactions - so my income is actually displaying as 10% more than it should be - and I cannot use the app to help me with my GST reporting as it does not include those monthly incoming and outgoing GST amounts. As a result I need to keep continue tracking my GST in a separate spreadsheet where this app could easily provide that information to me.

    Myth asked 11 months ago
    Thank you for your feedback. Your suggestion will be considered in future updates to the myDeductions tool. At this stage you can see the breakdown in a CSV file by using either the backup or share via email functions.
  • Hello. I'm a social media Influencer in the area of fashion & styling. This requires the purchase of accessories and clothing to review and style, particularly new collections that are launched. They are genuinely used for no other purpose than taking pictures to post on social media. Being a new area, I can't find any information on how these items are to be treated in terms of business assets & tax deductibility. Please advise?

    needbetteralias asked 11 months ago
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or domestic in nature.

    In general, clothing expenses are not deductible unless they are for protective clothing, uniforms, or occupational-specific clothing.

    If you feel that there is sufficient connection between the clothing and accessory expenses you buy and earning your assessable income you can apply to the ATO for a private ruling. This ruling will provide advice which is binding on the Commissioner of Taxation in relation to your specific facts and circumstances.

    Further information about applying for a private ruling can be found on our website at Applying for a private ruling.
  • Hi, where do I add a donation details? Do I add as an expense? If so, what type? Thanks in advance

    Fian asked 11 months ago
    You are able to claim a tax deduction for a gift or donation that meets four conditions, detailed on the webpage Gift and donations.

    Once you have determined that your gift or donation meets all four conditions, you can follow the process below to claim your tax deductible gift or donation on our online service, myTax accessed through your myGov account.

    In your online tax return lodgment, step 3 labelled as Personalise return, you will need to select the items - You had deductions you want to claim and then Gifts, donations, interest, dividends, and the cost of managing your tax affairs.

    In the next step of your online tax return lodgment, step 4 labelled as Prepare return, you will have to select Add/Edit of the label Deductions.

    For the label Gifts or donations, select Add.

    Type in the Amount and Your description of the gift or donation, and select Save.

    Ensure to select Save and continue on the Deductions page to continue filling in your online tax return.

    However, if you are filling in a paper Tax return for individuals form, your tax deductible amount of gifts and donations must be placed in label D9, under Deductions.

    For more information, please see Gift and donations and D9 Gifts or donations 2017.
  • I'm employed as a Peer Support Facilitator where you have to have lived experience of mental health issues to qualify for the position (I have Complex PTSD). I'm currently seeing a counsellor for my Complex PTSD can I claim that cost as a tax deduction? Thanks.

    Kate B asked 11 months ago
    In order to claim a tax deduction, the money you spend must be directly related to earning your assessable income and the expense must not be private or domestic in nature.

    In general, medical related expenses, such as counselling, are of a private nature and not deductible.
  • Hi, I now work in a job where my dogs are required to attend my work for assistance with training demonstration and to aid other dogs behaviour concerns. Can I claim their expenses on tax?

    Sarah Ogden asked 11 months ago
    The answer will depend on your circumstances and whether the dogs have been trained as working dogs to carry out specific tasks.

    The choice by an employee to use their pets in a work environment is a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.

    Where an animal is acquired and trained as a working dog (i.e. cattle dog, police dog etc.) and used solely for that specific income producing purpose, a deduction for expenses incurred relating to that animal may be available.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the deduction requirements. That is, that the expenses were incurred in gaining or producing your assessable income.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I'm a doctor that works at a large teaching hospital. I also have a mortgage in a house where I live close to where I work. As part of my work I was seconded to work at a hospital 6hrs away for a period of 6mths. As such I rented a place near the secondment hospital for 6mths and returned periodically to maintain upkeep on my mortgage property. No one lived in the mortgage property whilst I was away. I then returned to my normal place of work after the 6mths. Can I claim the rent at the seconded area as a tax deduction?

    Sk1985 asked 11 months ago
    Based on the information you have provided, you were living away from home for the period of your secondment. In these circumstances your rent would be a private living expense and would not be deductible.

    You have not stated whether you received an allowance from your employer to compensate you for the additional cost of accommodation while you were on secondment. However, if you did, that allowance would be a living away from home allowance. Living away from home allowances are fringe benefits and are not included in the income of the recipient. This means recipients do not show these allowances in their tax returns (and they also cannot claim a deduction for the costs of them living away from home).

    Further information about the deductibility of accommodation expenses is available on our website and in draft Taxation Ruling TR 2017/D6 – Income tax and fringe benefits tax: when are deductions allowed for employees’ travel expenses?

    If you require further information you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Can I claim competition entry fees for awards to do with my profession?

    Garth asked 11 months ago
    We would need more information to answer your question, but generally fees paid to nominate for an award in a profession are of a private nature and not deductible.

    However, in circumstances where a prize or award is included in assessable income, the costs incurred in gaining the prize or award may be an allowable deduction.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Is there anyway to add more deductions after uploading i have realised i have a number I have missed but already uploaded them last night. When i used the ato app my deductions it told me I can not edit. I have approximately another $500 to add

    Stuart Geddes asked 12 months ago
    The myDeductions tool only allows one upload per financial year. You will need to enter your additional deductions into myTax manually.
  • I had to complete a medical and fitness test when I was offered my current job in the medical field before I could work my first shift. It was through a private company who sent me a receipt, is this claimable?

    Tahlia asked 12 months ago
    In order to claim a deduction, the money you spent must be directly related to earning your income and the expense must not be private or domestic in nature.

    Expenses incurred to gain work are not allowable deductions, as the money has been spent before you started earning income from the job to which they relate.

    Based on the above, the money spent on your medical expenses and the fitness test are considered to be private. Consequently they are not allowable deductions.

    For more information, please see Deductions you can claim.
  • I have a specific question for and Individual and work related deductions. My spouse had a medical issue with her hips that prevented her from working. In order to return to work, she required surgery on both hips. She had to go on sick leave before the ops and then after. Can this be claimed as a deduction as she was unable to continue her work without it being done?

    Pope asked about 1 year ago
    We would need more information to answer your question, but generally medical expenses, are of a private nature and not deductible. There would also need be a direct connection between the expenses of surgery with your spouse’s occupation for it to be an allowable work-related deduction.

    Although the medical issue with your spouse’s hips prevented her from working, the surgery and associated medical expenses would generally be considered a private expense.

    However, in certain circumstances, you may be able to claim the net medical expenses tax offset. This is a percentage of your net medical expenses relating to disability aids, attendant care or aged care. The tax offset is income tested and the percentage of net expenses is determined by your adjusted taxable income and family status.

    For more information, see Medical expenses and the Net medical expenses tax offset calculator.
  • Good Afternoon, As a full-time ADF member, I've had different advice from 2 tax agents regarding claiming the following: 1) work related travel to work related medical appointments, and 2) work related debt incurred due to no fault of my own - negligence of defence to cancel allowance, and recovery of fees associated with retaining licences. To set the scene, I have been working from home over past 12 months due to serious work related illness. My home location is 6 hours from work - return. Normally work would send a driver to drive 3 hours, pick me up and take me to the appointment, return me home and then drive back to the work location 3 hours away. During this period, I attended some related medical appointments at my own expense due to inability for Defence to provide a driver or I drove myself. Question 1. is work related medical travel expenses claimable in the context of above or not? Question 2. due to my illness and subsequent absence, am I accountable for a allowance debt which was incurred due to no fault of my own, which defence should have cancelled after discharge from hospital and long-term medical absence? Furthermore, my partner had a casual job for about 6 weeks earlier this year and spent a couple hundred dollars on safety equipment (safety boots and hi-vis clothing) for this job, is she entitled a tax refund for these purchases as well as super co-contribution? Thanks in advance. Rob Emerson

    RobEmerson asked 12 months ago
    Question 1.
    is work related medical travel expenses claimable in the context of above or not?
    We would need more information to answer your question, but generally costs of travel to medical appointments are expenses of a private nature and not deductible. If the medical treatment was covered by your employer or its insurer it is not clear why you would have to incur costs to travel to medical appointments, i.e. any travel expenses you incurred would normally be reimbursed to you by your employer or by the insurer.

    Question 2.
    Due to my illness and subsequent absence, am I accountable for an allowance debt which was incurred due to no fault of my own, which defence should have cancelled after discharge from hospital and long-term medical absence?
    Your question 2 is not entirely clear, but we understand you to be saying that you were overpaid an allowance during a period when you were off work on sick leave, and the allowance related to certain licences you held. Your employer subsequently sought reimbursement of the overpaid allowance from you. The sick leave was occasioned by an illness or injury you sustained at work. You are asking whether repayments of the overpaid allowance are deductible to you.

    Overpaid salary or allowances are not assessable income to an employee, and repayments are not deductible.

    Other questions (safety equipment deductions and super contributions)
    Expenditure on safety boots and hi-vis clothing is deductible (i.e. it reduces your taxable income) if these items are reasonably necessary due to the nature of the work being performed.

    The ATO website has information about eligibility for the super co-contribution, at the link below.

    Eligibility for the super co-contribution
  • I am working on a sheep property and use my dogs solely for work. Am I able to calm the purchase of my working dogs on my tax?

    Theveers asked 12 months ago
    The answer will depend on your circumstances and whether the dogs have been trained as working dogs to carry out specific tasks.

    The tax law considers the choice by an employee to use their pets in a work environment to be a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.

    Where an animal is acquired and trained as a working dog (i.e. cattle dog) and used solely for that specific income producing purpose, a deduction for expenses incurred relating to that animal, including the cost of buying the animal, may be available. A working dog is considered to be a depreciating asset for taxation purposes. As the ATO does not have a published rate for decline in value of a working dog you will need to determine the effective life of the working dogs if a deduction for depreciating their costs is available to you.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to show how you calculated your deduction and to demonstrate that you meet the deduction requirements.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I worked as a Uber driver for about 6 months of the year, I purchased a vehicle to use with uber, I claimed it on my bas for that 1/4 for 80% business use, now doing my income tax for the year I haven't done uber for months.. what percentage can I put on my tax return, still same as bas or lower since I haven't done uber for months?

    26berto1979 asked 12 months ago
    You will be required to substantiate your car expenses for income tax purposes by using one of two methods - the cents per km method or the log book method.
    1. Under the cents per km method you cannot claim an additional deduction for car expenses such as depreciation as the cents per km incorporates a notional depreciation amount.
    2. Under the logbook method you can claim car expenses such as depreciation for the business use of the vehicle. You are required to keep records including a log book to determine the business use percentage

    We are assuming you have used the log book method to determine your business use percentage and you have kept log book records for a continuous period of at least 12 weeks in the first year that you used this method. See Logbook-method for requirements for a valid logbook.

    The 12 week period must be representative of your business use over the whole year. Importantly, if there has been any variation of the pattern of use during the year this must also be reflected in your business use percentage. Note that the odometer reading of the car must be kept at the start and end of each income year when using the log book method. Generally, it would be expected that ride sharing data available to Uber drivers would provide sufficient records necessary to comply with the logbook method requirements.

    As you have stopped driving for Uber for several months the 80% business use will not be representative of your business use of the car for the full year. Accordingly, you will need to vary your business use percentage to reflect the full year. A reasonable business use percentage can be calculated by the total business km’s travelled while driving for Uber divided by the total km’s your car travelled for the full year. As an example, you may have driven for Uber for 5,000 km’s but drove a total of 20,000 km’s in the year. Therefore, in this example, 5,000 km is divided by 20,000 km to result in a 25% business use percentage.

    When completing your tax return please refer to the ATO website: D1 Work-related car expenses 2017, as this provides further information on the log book method.
  • I am a army reserve SNCO (sergeant) who is required to pay monthly compulsory mess subscriptions as a member of a mess. Are these fess tax deductible and if so under which section of the Act does it fall please? Thanks you.

    SW asked 12 months ago
    Compulsory mess subscriptions are deductible under section 8-1 of the Income Tax Assessment Act 1997 to the extent that they are not for food, drink or entertainment as they are considered private expenses. Refer to Taxation Ruling TR 95/17 which covered worked related deductions for employees of the Australian Defence Force.
  • can you claim tax for a drug and alcohol test that the company has asked of you but your paying for it out of your pocket.

    milly asked 12 months ago
    In order to claim a deduction, you need to determine whether the expense you have incurred is private or domestic in nature.

    If you incurred the cost of a drug and alcohol test prior to employment, the cost of the test would be considered a private cost and would not be allowed as a deduction.

    Generally, such tests that are conducted on the job would be reimbursed by the employer. If they are not reimbursed, you would usually be able to claim the cost of the test.
    For more information, see Deductions you can claim.
  • If you add features to your car for work purposes for example; a tray and a toolbox can you claim it as a deduction

    Gb5555 asked 12 months ago
    Features added to your car for work purposes, such as a tray and toolbox, are considered depreciable assets, and can be written off over a period of time as tax deductions.

    For more information on how to calculate deductions for the cost of depreciating assets, see Guide to depreciating assets 2017.
  • I work as a Large Animal Veterinarian in country NSW. I have two working dogs that are used to round up cattle and are also used blood donors for the patients in the Veterinary Hospital. These working Dogs also guard my Work Truck and Home during the Day/Night as I work irregular hours. Can I claim their medical costs/food/parasite control as a deduction?

    Ed212 asked 12 months ago
    The answer will depend on your circumstances and whether the dogs have been trained as working dogs to carry out specific tasks.

    The tax law considers the choice by an employee to use their pets in a work environment to be a personal choice. As a consequence a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income.

    Where an animal is acquired and trained as a working dog (i.e. cattle dog, police dog etc.) and used solely for that specific income producing purpose, a deduction for expenses incurred relating to that animal may be available.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the deduction requirements. That is, that the expenses were incurred in gaining or producing your assessable income.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Hi, I have recieved my tax refund but have not recieve my deductions. Is there something that i need to do in order for me to get that? or deductions claims comes later?

    Jeph asked about 1 year ago
    Deductions are claimed as part of your tax return and form part of your total refund. Deductions are usually claimed at the same time as when you lodge your tax return.

    If you've made a mistake or missed claiming some deductions that you are entitled to, on an income tax return you've already lodged, you can request an amendment to your income tax assessment. If you think we've made a mistake processing your return, you should phone us to see if we can sort it out without the need for an amendment. For more information, see: Correct (amend) an income tax return.
  • I work as a restaurant manager for two upmarket restaurants in the city. As manager i am in charge of ordering the amount of food needed every night and the quality of food and the service of staff. Can i claim eating at competitors restaurants as a deduction as i am the manager and my boss expects me to keep up with the current trends regarding food and service standards. I am required to do this as it is a very competitive industry and if i do not i might miss the latest trend.

    James Allgood asked about 1 year ago
    In general, the cost of food or meals is a private expense, and therefore cannot be claimed as a tax deduction.

    However, a deduction may be allowable where there is sufficient connection between the food or meal expenses incurred and the manner in which a taxpayer earns their assessable income. For example, a partial deduction for meal expenses was allowed to a restaurateur who travelled to famous restaurants and studied their method of operation and food and drink presentation.

    If you would like binding advice in relation to your specific facts and circumstances, you can apply for a private binding ruling. The ruling application form is available from the ATO website.
  • I have to take majority off my tools to work and back in my own car/ute, my ute is my own personal car. Can I claim the price of the my car on tax and the kilometers I travel to and from work on tax?

    Billy111 asked about 1 year ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are also of a private nature. In limited circumstances an employee can claim the costs of travelling between their home and a work location if the travel is in performing their duties.

    In some limited circumstances an employee, due to the special demands of the work, may be able to claim such travel. One special circumstance is where all of the following apply:
    • your employer requires you to transport bulky tools and equipment between your home and the work site,
    • you use the bulky tools and equipment to do your job at the work site, and
    • there is no secure storage area for the equipment at the work site.

    Whether the equipment is bulky is a question of fact and degree. It is not possible to determine from the information provided whether your equipment and tools are bulky.
  • Hi, I have participated and paid for 2 professional development courses run by Landmark Forum. I am unsure if I can claim this on my tax as it was not specific towards my current role as a Project Coordinator/Specialist - but the purpose of the education was for leadership skills and general proffessional development. Are you able to clarify what can and cant be claimed for development and education?

    Jessica Maya asked about 1 year ago
    Thank you for your question regarding claiming a deduction for self-education expenses. You cannot claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment, even though it might be generally related to it, or enables you to get new employment.

    Further information about self-education expenses is available from our website.
  • I use Uber to get to work sometimes. Can i claim this on tax? And if yes how?

    Arya asked about 1 year ago
    You can claim vehicle and other travel expenses directly connected with your work, but generally you can't claim for normal trips between home and work – this is considered private travel.

    Please follow the link below for more information about travel between home and work. Vehicle and travel expenses.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Can I claim my Uber's to and from work?

    about 1 year ago
    Trips between home and work are generally considered private travel. However, you can claim deductions in some circumstances, as well as for some travel between two workplaces.
    Please follow the link below for more information about travel between home and work.
    Travel between home and work and between workplaces

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • If a work quiet far from home and I travel with uber and public transport I able to claim them all on tax Thanks

    rachaellee asked about 1 year ago
    You can claim vehicle and other travel expenses directly connected with your work, but generally you can't claim for normal trips between home and work – this is considered private travel.

    Please follow the link below for more information about travel between home and work. Vehicle and travel expenses.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • Hi there. I am currently going through the process of registering for UBER. I am registering my ABN. As part of the process I am purchasing a vehicle for around $15000. My question is can I claim the cost of the vehicle this financial prior to starting with UBER and if so how much am I likely to see returned??

    Andyo asked about 1 year ago
    Based on the facts you have provided, you will not be able to offset the cost of the vehicle you purchased against ‘non-Uber income’ you earned in the 2016/17 year. Taxpayers using a car to produce income can generally claim deductions for depreciation over the effective life of the car, based on their proportion of income producing use. In some circumstances taxpayers can claim the full cost of purchases as an instant asset write-off deduction, but generally for small business taxpayers any such deductions are ‘quarantined’ by the non-commercial loss rules and are only able to be offset against income from that business activity (e.g. your Uber income).
  • I went to a private drug and alcohol rehabilitation centre which is a registered Australian business based in Chiang mai in Thailand. Am I able to claim the cost of treatment back on tax?

    Bazzacom asked about 1 year ago
    You will not generally be able to claim an income tax deduction for expenses associated with attending a drug and alcohol rehabilitation centre as this would be considered a private expense. Medical expenses and other expenses to assist someone engaged in rehabilitation are nearly always a private expense and not deductible. The following link provides information about deductions: Deductions you can claim

    You can claim an offset for some medical expenses relating to disability aids, attendant care for a person who has a disability and aged care but your attendance at a drug and alcohol rehabilitation centre does not fall within one of these categories. The following link provides information about the Net Medical Expenses Tax Offset: Medical expenses.
  • I work in a FIFO travel arrangement at a remote South Australian site. My employment contract states my Point of Hire is Sydney. My employer originally paid for my flight from Sydney to Adelaide and then Adelaide to site. This year they no longer pay for the flight from Sydney to Adelaide, due to my contract Point of Hire, can I claim this as a tax deduction?

    Luke asked about 1 year ago
    You can claim the flight from Sydney to Adelaide as a deduction if:
    • you are travelling in the performance of your duties, under the direction and control of your employer, from when you check in at Sydney airport; and
    • you actually incur the cost, i.e. you pay for the flight and your employer does not reimburse your costs.
    Circumstances that indicate you are travelling in the performance of your duties from Sydney include:
    • you travel during work time, i.e. you ‘clock on’ when you check in at Sydney;
    • your remuneration covers the time spent travelling; and
    • you are under the direction of your employer from when you check in at Sydney, for example, you have to comply with code of conduct, etc.

    Note that the travel from your home to Sydney airport remains a private expense and is not deductible.

    Remember to keep records of your travel expenses. If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    The ATO website has more information about travel expenses and income and deductions. If you require further assistance you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I am a Therapeutic Youth Worker studying psychology at honours level. This study builds on my skills required to do my job. Am I able to claim self-education expenses related to my study (travel to intensive schools, internet access for online study)

    Sam1 asked about 1 year ago
    Thank you for your question.

    Whether you can claim your self-education expenses will depend on your particular circumstances. You can claim your study expenses if all of the following are satisfied:
    • you are employed on a full-time or part-time basis, rather than working casually to support yourself while studying
    • you can show that you will gain a formal qualification that will be used in the course of your current employment
    • there is a direct connection between the study and your current work activities; that is, the study must:
      • maintain or improve the specific skills or knowledge you require in your current employment
      • result in, or is likely to result in, an increase in your income from your current employment.

    You cannot claim your study expenses if your study has limited use in your current occupation, even though it may give you new skills that can be used in obtaining new employment.

    More information on self-education expenses is available on our website www.ato.gov.au. In particular, you can find general information on self-education expenses here and more detailed information here.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    If you require further information you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I work in a science lab where on any given day I am exposed to hazardous chemicals, liquid nitrogen, sharps, heavy equipment etc. As such, closed in footwear is a requirement of my job. Can I claim for footwear, especially if I choose footwear that is resistant to the hazards of my job (i.e.rubber soled leather boots)?

    Beaker asked about 1 year ago
    Thank you for posting your question about claiming expenses associated with buying footwear. For income tax purposes, expenses of this kind would be considered under the general tax deduction rules.

    The following link provides information about deductions you can claim:
    Deductions you can claim

    Importantly, you cannot claim an income tax deduction for an expense which is private or domestic in nature.

    You can claim for clothing and footwear that you wear to protect yourself from the risk of illness or injury posed by your income-earning activities or the environment in which you are required to carry them out. To be considered protective, the items must provide a sufficient degree of protection against that risk.

    Factors we may consider include:
    • is the quality of the item different to items of a comparative nature used for domestic or private purposes
    • does the use of the item in the work place make it unsuitable for private or personal use
    • is the use of the item a requirement of your employer, work related safety laws or an industrial agreement.

    You can't claim the cost of purchasing or cleaning ordinary clothes you wear for work that may also protect you. For example, you can't claim for normal, closed shoes, even though you wear them to protect your feet. Ordinary clothes (such as jeans, drill shirts, shorts, trousers, socks, closed shoes) are not regarded as protective clothing if they lack protective qualities designed for the risks of your work.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the rules for deductibility.

    For more information on how the law applies to work related protective clothing expenses see Taxation Ruling TR 2003/16 – Income tax: deductibility of protective items.

    If you require further information you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I am an Australian resident for tax purposes. I am planning on selling some shares in NZ that dad left me in his will. Will I have to pay tax on these in Australia? If so, what if I leave the money in NZ to pay a student loan?

    robbo asked about 1 year ago
    As a resident of Australia for taxation purposes you are required to declare your world-wide income in your Australian income tax return. A taxpayer who sells shares will be subject to tax under the capital gains tax (CGT) provisions. If a taxpayer sells shares for more than the acquisition cost they will make a capital gain and this gain will be taxed at their marginal tax rate. (CGT is not a separate tax.)

    Generally, CGT is disregarded when shares from a deceased estate are transferred to the beneficiaries but a CGT liability will arise when the beneficiary (you) disposes of the shares by either selling them or transferring them to another person.

    You will need to seek advice from the New Zealand tax authorities to see if any tax liability will arise when you sell the shares. If this is the case, you may be entitled to a Foreign Income Tax Offset in Australia. This is a credit for tax paid on the same income in another country.

    Further information about Capital gains tax and the Foreign income tax offset rules are available on the ATO website.

    It does not matter if the proceeds of the shares are transferred to Australia or are used to pay off a student loan or are put to any other use in New Zealand. The tax treatment will still be the same.
  • I have a medical response assistance dog who accompanies me to my work place- without her, I am less able to work. She is not a pet or a therapy dog, she is medical equipment that enables me to work. She is trained through a gov recognised organisation, but owned by me and training/registration costs paid by me. Am I able to claim her registration and yearly assessment (Public Access Test) fees through my tax? Thank you kindly

    EvieEvie asked about 1 year ago
    For income tax purposes, expenses of this kind are considered under the tax deduction rules or the Net Medical Expenses Tax Offset rules. The following link provides information about deductions:
    A person will not generally be able to claim an income tax deduction for expenses associated with a medical response assistance dog. Medical expenses and other expenses to assist someone with a disability are nearly always a private expense and not deductible.

    However, you may be entitled to a medical expenses tax offset, depending on your overall tax position.
    You can only claim this offset for expenses relating to disability aids, attendant care for a person who has a disability and aged care. We consider that the purchase and maintenance of a qualified assistance dog for assisting people with a disability (but not for social therapy) is an example of a disability aid.

    Net medical expenses is the amount you have paid less any refunds you receive from Medicare or a private health insurer for eligible medical expenses over the tax year. For the 2016-17 income tax return, if you have over $2,299 in eligible out-of-pocket expenses, the ATO allows a 20% tax offset (that is, you get back 20 cents in the dollar) on anything over this threshold. However, you can’t get a refund if this exceeds the tax payable. There is no upper limit on the amount you can claim. This offset is income-tested and if your adjusted taxable income is above $90,000 for singles and $180,000 for a couple or family, the tax offset reduces to 10% and the expenses threshold increases to $5,423.

    The family income threshold is increased by $1500 for each dependent child after the first.
    The tax offset will cease after the 2018-19 tax year.
    See details for eligibility in claiming the offset entitlement at T5 Total net medical expenses for disability aids, attendant care or aged care 2017.
  • I work as a junior doctor in Western Australia. My normal workplace is hospital A by whom I am employed. For 12 weeks I was required to work at Hospital B (8km further away than Hospital A). Am I able to claim km for the period I was required to work at Hospital B, as it was a temporary alternative workplace?

    Catherine18 asked about 1 year ago
    You cannot claim a deduction for the costs of travelling between home and work as they are not incurred in the course of earning your income and are also of a private nature. This includes travel to the temporary alternative workplace. Travel directly between workplaces is deductible providing neither is your home. Therefore, if you work at one hospital and travel to the other hospital to continue working, the travel costs are deductible.
  • I am an architect specialising in environmentally sustainable builds and I am wanting to build a display home to show my work if I live in it can I claim anything through my business?

    Design asked about 1 year ago
    The answer will depend on your circumstances. A deduction is only available if an expense is directly related to earning your assessable income. See ato.gov.au for more information regarding income and deductions for business, and tax implications for property used in running a business.

    There are a number of issues to consider including:
    • Would the display home also be your place of business?
    • What expenses, if any, are related to income? (You may have to apportion between business and private use).
    • What expenses, if any, are capital expenses?

    Capital Gains Tax and GST implications of buying and selling a home should also be considered.
  • I live in Adelaide a travel to Perth via flight and then to Barrow Island. The point of hire is Perth but I am required to carry my own ppe and tools to and from site. Am I able to claim my flight from Adelaide to Perth and Perth to Adelaide if I have a letter from my employer stating I am required to carry those items to and from site.

    Sam89 asked about 1 year ago
    Costs incurred when travelling between home and work are generally not able to be claimed as a tax deduction as they are not incurred in the course of earning your income and are also of a private nature. In limited circumstances an employee can claim the costs of travelling between their home and a work location if the travel is in performing their duties. From the information you have provided, your travel between Adelaide and Perth is not in performing your duties.

    In some other limited circumstances an employee, due to the special demands of the work, may be able to claim such travel. One special circumstance is where all of the following apply:
    • your employer requires you to transport bulky tools and equipment between your home and the work site,
    • you use the bulky tools and equipment to do your job at the work site, and
    • there is no secure storage area for the equipment at the work site.

    Whether the equipment is bulky is a question of fact and degree. It is not possible to determine from the information provided whether your equipment and tools are bulky. Further, to get a tax deduction, it is not enough for you to choose to carry tools and equipment. If tools and equipment are made available to you on Barrow Island and you choose to use your own instead, you cannot claim the cost of your travel.

    Given the remoteness of Barrow Island, the large number of employees flying in and out, the logistics of them carrying their own bulky tools and equipment on aircraft, and the fact the island is a Class A nature reserve with strict quarantine guidelines in place to help protect its unique environment, it would be unusual and surprising for employers to require this.

    If you claim a deduction and it is reviewed by us, you will be required to provide evidence to demonstrate that you meet the conditions above.
  • I own a house in Townsville and work full-time as a Builder in Townsville and in the weekends I travel from Townsville to Paluma (87km's) and hire a room for the weekend where I am employed by a cafe as a barrister on Saturday and Sunday. Can I claim a tax deduction for my accomodation expense in Paluma?

    Deductionhelp asked about 1 year ago
    For an employee to be able to claim a deduction for accommodation expenses, the expenses must be incurred in travelling in the course of doing their work. In the circumstances described, your costs of accommodation at Paluma are not deductible. They are a cost that is preliminary to you working as a barista and are not deductible. Likewise, transport costs you incur in travelling between Townsville and Paluma would not be deductible as the travel is from your home to a second workplace and is preliminary to the work.
  • I bought the car in the last week of the january 2017 for $7500 in cash and then got it transfered under my name. I bought it for driving with uber. I started driving casually in feburary but i forgot to claim the gst deduction in my bas which i lodged in march 2017. What should i do now ?

    Syed Ali asked about 1 year ago
    Provided you are carrying on an enterprise when you bought the car, you may be able to claim a GST credit for the GST you paid in the price of the car. This GST credit would need to be reduced by the percentage you will be using the car for private use. The percentage of business use of the car may be claimed as a GST credit. Ride sourcing, GST and carrying on an enterprise.

    For example, since you drive casually you may intend to use the car for about 15% business use. Whatever percentage you work out should be documented or recorded, such as by keeping a logbook for 12 weeks.

    For you to claim a GST credit, the seller of the car must have been registered for GST and you must have a tax invoice. If so, you would work out the GST credit that you may claim this way:

    $7,500 x 1/11 = $681.81. Reduced for private use to the business use percentage: $681.81 x (% of business use).
    As per the example $681.81 x 15/100 = $102.27.

    It would be reasonable to apply the same percentage that you work out to other vehicle expenses such as tyres, cleaning and servicing.

    As the GST credit was left out of your January BAS by mistake and you have overstated the GST you needed to pay for that BAS, under the ATO error correction guidelines, you can simply include the GST credit in the next BAS if you have a tax invoice and are not under audit by the ATO.

    For more information:
  • I am an Uber driver, who resides at Penrith. As most of businesses are around the inner suburbs and the city area, I aim to drive to the city. From the time I left Penrith, I turn on my Uber app and ready to pick up passenger. Unfortunately, some days, I don't have passenger until i reach Strathfield area. Question: 1. From Penrith to Strathfield, can I claim the kilometres as business-related? The purpose of the travel is solely to find passengers. 2. Whether the incurred kilometres as a result of driving around to find passengers can be claimed as business related or not?

    RSay asked over 1 year ago
    Most ride-sourcing drivers use their car for both personal and business use. This means you will need to apportion any car expenses deductions between personal and business use.

    There are two different methods you can use to claim car expenses deductions. More information is available about the different methods on our website by following this link www.ato.gov.au/ridesourcing. Example 4 is particularly relevant to your situation.

    In your question you mention claiming kilometres so the following answer assumes you are using the cents per kilometre method.

    When calculating expenses for a journey you need to remember that you cannot claim expenses that are of a personal or domestic nature. Simply turning on the ride-sourcing technology platform or application while driving to places for a personal or domestic purpose does not automatically mean that you will be able to claim the kilometres travelled in those journeys.

    If the sole intent of your travel between Penrith and Strathfield is to produce ride-sourcing income you will be entitled to claim a deduction for the kilometres travelled. Similarly if the sole purpose of driving around the city is to produce ride-sourcing income you can also claim kilometres associated with that journey.

    If at any time during a journey you decide that business is slow and decide to meet friends, do some shopping of participate in other activities of a personal or domestic nature, then the purpose of the trip changes from an income-producing purpose and you would not be entitled to a deduction from that point. You would need to take an odometer reading at the point at which the purpose of the travel changed from an income producing purpose to a personal trip.
  • I am Economist and works 4 days at home and 1 day in the office (full time) as a Senior Financial Analyst. Am I allow to claim Occupancy Expenses such as a portion of my mortgage interest of my home? I have a private study at home. I have a letter from the employer where specify my conditions. The company is located in Two Wells, South Australia, and most of the time I worked with people overstate.

    MonicaM asked almost 2 years ago
    Thank you for your question.

    Based on the level of detail you have provided you cannot claim a deduction for occupancy expenses. You are entitled to claim a deduction for running expenses.

    Your occupancy expenses retain a private and domestic character and therefore are not deductible. Individuals can only claim occupancy expenses in two, very limited circumstances:

    • Where the space in the home is a place of business, for example a doctor or dentist surgery or a hairdresser studio in a home.
    • Where no other work location is provided to an employee by an employer and the employee is required to dedicate part of their home to their employer’s business as an office.

    In your case you maintain a private study and not a place of business for your employer. Further, you work out of your employer’s office one day per week which means you have an alternative work location.

    You are however entitled to claim a deduction for running costs. You are able to claim a deduction for the cost of expenses such as electricity for heating, cooling and lighting, cleaning costs, decline in value (depreciation) and the cost of repairs to furniture and furnishings in the area being used. However, you are only able to claim a deduction for the additional expenditure you incur on running expenses as a result of your income producing activities.

    It is important that you keep good records of the expenses and your use of the area when you make any claim for home office expenses. You can find the information you need on keeping records here.

    For more information on how the law applies to home office expenses see Taxation Ruling TR 93/30 Income Tax: Deductions for home office expenses, also available on the ATO website - here.
  • Is medical expenses paid by the employer for the employee's spinal cord rehabilitation in order to perform his job deductible?

    harrytd asked about 1 year ago
    By providing rehabilitation for an injured employee, the employer hopes the rehabilitation will enable the employee to continue to and increase the range of duties that he can perform in his employment.

    Although the employee will receive a personal benefit from this expenditure, the business also stands to benefit by retaining the services of its employee. The payment of this expenditure is intended to improve the value of the employee to the business. As a result, the outgoing is employment related and necessarily incurred in the carrying on of the business and, therefore, would be considered deductible under section 8-1 of the Income Tax Assessment Act 1997.

    Further to consideration of deductibility for income tax purposes, fringe benefits tax (FBT) must also be considered. Broadly, FBT potentially arises when a benefit is provided to an employee (and/or associate of the employee) by an employer where it is provided in respect of that employee's employment relationship.

    In this situation, the employee is the one who is liable for payment and will have incurred the expense. The employer is proposing to pay the expenses incurred by the employee, namely the rehabilitation expenses. It is considered that a fringe benefit will arise as a result of the provision of such a benefit.

    In this case, the provision of the fringe benefit will be taxable in full as the 'otherwise deductible rule' pursuant to section 24 of the FBTAA would have no application. The 'otherwise deductible rule' considers if the employee had incurred the expense in their own right would an income tax deduction have been available to that employee. In this situation, the expenses would not have been an income tax deduction to the employee as it would be considered a private expense.

    Exemption from FBT is provided in a number of circumstances. Examples of exemptions that could potentially apply in your case are:
    If you require further information you can apply to the ATO for a private ruling which will provide binding advice specific to your facts and circumstances.
  • I bought a puppy to be trained as a therapy dog for my workplace ... in particular for the children with additional needs to assist us in our treatment delivery. The dog works every day except has most weekends off. Can I claim vet and training and any of his living expenses etc. I personally pay for a trainer to come to the workplace to teach staff how ot train him etc. thank you

    Therapy asked over 1 year ago

    Thank you for your query about the purchase and maintenance of a puppy for the purpose of being trained and used as a therapy dog for your workplace, and whether you are eligible to claim a deduction for these expenses.

    Based on the information provided, the tax law does not allow the pet maintenance expenses to be claimed as work-related deductions, even if you use the dog at work in the manner described.

    The tax law considers the choice by an employee to use their pets in a work environment a personal choice, and a tax deduction cannot be claimed as the costs are private and are not considered incurred in earning assessable income. Consequently, in your circumstances, you cannot claim a deduction for the purchase and maintenance costs of your puppy.

    Note that there are some employment situations where the a dog is owned by the employer or business, and employees may be required to incur expenses for training and maintaining dogs. An example is police officers with the responsibility for maintaining and training police dogs.

  • I am a Uber driver now and I use my personal car for Uber which I bought it over 5 years ago. The lease has already been paid off before started driving for Uber. My question is, can I put any proportion of depreciation in the next financial year as a tax deduction based on the market value?

    MR asked almost 2 years ago

    You can deduct a proportion of the decline in value (depreciation) of the car from when you used the car for a taxable purpose. You will need to calculate the decline in value of the car from when you first used the car for any purpose.

    In calculating your deduction for the decline in value of the car for the years you used it for a taxable purpose, you need to work out the car’s cost, effective life, days held during the income year and taxable use percentage. The Guide to Depreciating Assets 2016will help you work out if you can deduct an amount for the decline in value of the car and the amount of the deduction.

    To help with your calculation, you need to think about:

    ·  The car’s cost. The decline in value of the car is not based on the current market value if you start to use the car for a taxable purpose after using it privately. The cost of a leased car generally depends on the terms of the lease used to purchase the car.

    ·  If you used the car for a taxable purpose. That is, if you provide ride‑sourcing services through the Uber App and earn income, then it is likely that you used the car to produce your assessable income, which is a taxable purpose.

    ·  If you also use the car for private purposes. You need to apportion the decline in value of the car between your private and taxable use, and use this calculation to work out the taxable use percentage. You need to show how you calculated the taxable use percentage. Find more information at ato.gov.au/sharing economy­.

    EXAMPLE: Working out the decline in value of the car,  ignoring any GST impact

    Roy acquires a car on 1 July 2010 for $20,000 and used it wholly for private purposes. On 1 August 2016, Roy begins to provide ride‑sourcing services through the Uber App and the car is used jointly for taxable and private purposes. Roy’s car started to decline in value from 1 July 2010 as that was the day he first used it. He needs to work out the car’s decline in value from that date. However, Roy can only claim a deduction for the decline in value for the period commencing 1 August 2016 when he used the car for a taxable purpose.  

    You could also choose to use the ‘cents per kilometre’ method (for up to 5,000 business kilometre travelled) to calculate your car expenses and this method already takes into account the decline in value (depreciation) of the car. So, if you choose this method, you can’t then claim a separate deduction for the decline in value.

    Note if you are making a loss from providing ride-sourcing services and want to offset the loss against other income you earn, then you need to check if the non‑commercial loss provisions apply. Find more information at ato.gov.au/Business/Non-commercial-losses.

  • Can I claim mortgage interest.

    mickrajal asked about 2 years ago

    Thank you for your question. You have not provided any information about your circumstances, so the guidance below is of a general nature.

    Firstly, as you have used the myDeductions quiz to ask the question, we will assume that you are an employee enquiring about a deduction for mortgage interest on your home (that is, you are not an owner of rental / investment property).

    Employees typically are not entitled to claim a deduction for mortgage interest for their home – the expense is not directly connected to employment income earned and it is generally a private expense. This includes when some work is done at home, for example, in a private study, at a dining table or spare desk.  In these circumstances, only the additional cost of expenses such as electricity for heating, cooling and lighting; cleaning costs; and depreciation and the cost of repairs on items of furniture and furnishings in the area used can be claimed as a deduction.   

    There is an exception – when the employment duties require the employee to perform some or all of their work using a home office that is identifiable as a place of business e.g. a dentist’s office or when it is used as the employee’s sole base of operations e.g. a salesperson who is not provided with a place to work from. Usually this will be a designated room or area in the home that will contain office furniture and equipment and is set aside for the work activities.

    We may check these claims and also ask your employer to confirm that you need a home office.

    It is important that the home office is clearly identifiable as a place of business and is an area used for the work activities that is used exclusively (or almost exclusively) for work purposes (including meeting any clients or customers) and is not used for private purposes outside work hours.

    If you use part of your home as a home office instead of as a private study, a deduction will be available for mortgage expenses on a proportionate basis. We accept apportioning the mortgage expense based on the floor area of the home used for the income earning activities.  Employees must also apportion on a time basis to take into account the amount of time during the year that the home office was used for work activities.

    Note that there are capital gains tax (CGT) consequences of deducting mortgage interest in respect of a home office. For most people their principal place of residence (home) can be sold CGT free. However, where there is a home office, CGT is likely to be payable on a portion of the gain following the sale of the property, as the property has not been used exclusively as a family home.

    Our Guide to capital gains tax 2016 can help you work out how CGT may apply in these circumstances. A copy of the guide is available on the ATO website, ato.gov.au – here.

    It is of course important that you keep good records of expenses and your use of the area when you are claiming for a home office. You can obtain ATO website information on substantiation requirements relating to interest deductions – here.

    For more information on how the law applies to home office expenses – see Taxation Ruling TR 93/30 Income Tax: Deductions for home office expenses, also available on the ATO website - here.

  • Hi, how can i lodge my tax return with my deductions without using mydeductions? I have tried to do this through the mygov website that takes me to the ATO "lodge claim" page but can only see the option to upload my deductible details through your app thanks, emily

    emilykw111 asked almost 2 years ago

    You do not have to use myDeductions app to include your deductions in myTax.

    To enter your deductions manually, on the ‘Personalise return’ page, select the checkbox ‘You had deductions you want to claim, or tax losses from earlier income years’ (and any other relevant items), and click ‘Next’. On the next page (Prepare return), you will see a section titled ‘Deductions, or tax losses from earlier income years’. Click ‘Add/Edit’ to view that section. This is where you can enter your work-related and any other deductions as appropriate.

    For a demonstration on how to add deductions in myTax, view our video.

  • Friends have 2 accounts which are in the name of the mother but are AFT for the 2 children. The money originated from a gift from the grandparents and the parents do not contribute or access the funds. Does the parent need to declare the interest?

    PeterN asked almost 2 years ago

    Thanks for your question. We think you may find the following ATO web page helpful:

    https://www.ato.gov.au/Individuals/Investing/In-detail/Children-and-under-18s/Children-s-savings-accounts/

    In short, who declares the interest depends on who owns or uses the funds of that account (no matter what type of account it is or the name of the account holder).

    In the situation you have outlined, we have a gift of money to a child where the parents are being trusted to look after the gift, and do not contribute to or access the account. In this case the interest earned belongs to the child.

    Note that the child does not need to lodge a tax return if their only source of income is interest totalling less than $416.

    Of course, if the money is not held on trust, or the parent treats the money and income as their own to spend, even if it is spent on the kids, then the interest should be included in the parent’s income tax return.

  • Under protective clothing you can claim, safety coloured vests are listed. Does this also extend to high-vis rain jackets and jumpers?

    AndrewR asked about 2 years ago

    Thanks for your question.

    If your work environment is hazardous, you can claim a deduction for the cost of protective clothing and footwear you need to protect you from the risk of illness or injury. As you note, our web page lists safety coloured vests as protective clothing.

    We have had a look at hi-vis rain jackets and jumpers online, and, if used because your work requires you to wear the item to protect your ordinary clothes or prevent injury, the expense can be claimed as a deduction.

    Remember to keep a record.

    You of course cannot claim for protective clothes provided to you by your employer.

  • Hello, I work FIFO, can I claim TAXI / uber ride from home to airport (and airport-home) as a work related travel expense? Thanks, Marian

    Marian Plucinski asked about 2 years ago

    Thank you for posting your question about travel expenses for fly-in fly-out (FIFO) workers between their homes and the airport.

    You cannot claim a deduction for travel expenses, including taxi/uber rides, between your home and a departure point under a FIFO arrangement.

    These are costs of travelling to work, not ‘travelling on work’. As the costs are of a private nature, no deduction is available for the travel.

  • I have a qualified ASSISTANCE DOG covered by "Guide Hearing & Assistance Dog Act". May I claim his yearly testing fee? His Private Health Insurance? Vaccination, Council Registration etc Not a Pet or Companion. Assists me with balance, does pain therapy, alerts for my other medical conditions.

    GypsyVirginia asked about 2 years ago

    Thank you for posting your question about claiming for expenses associated with your qualified assistance dog.

    Without information about the income you earn and your general tax position, we can only provide general information.

    For income tax purposes, expenses of this kind are considered under the tax deduction rules or the Net Medical Expenses Tax Offset rules.

    Deductions

    The following link provides information about deductions: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/

    A person will not generally be able to claim an income tax deduction for expenses associated with a guide or assistance dog. Medical expenses and other expenses to assist someone with a disability are nearly always a private expense and not deductible.  

    Net Medical Expenses Tax Offset

    You may be entitled to a medical expenses tax offset, depending on your overall tax position.

    From 1 July 15 the eligibility conditions for the Net Medical Expenses Tax Offset changed, such that you can now only claim for expenses relating to disability aids, attendant care for a person who has a disability and aged care.

    We consider that the purchase and maintenance of a qualified guide or assistance dog, for guiding or assisting people with a disability, (but not for social therapy) is an example of a disability aid.

    Your description of how the assistance dog is used suggests that all of the described expenses would be in the category of a disability aid and constitute medical expenses.

    Net medical expenses is the amount you have paid less any refunds you receive from Medicare or a private health insurer for eligible medical expenses over the tax year. For the 2015-16 income tax return, if you have over $2,265 in eligible out-of-pocket expenses, the ATO allows a 20% tax offset (that is, you get back 20 cents in the dollar) on anything over this threshold. There is no upper limit on the amount you can claim. This offset is income-tested and if your adjusted taxable income is above $90,000 for singles and $180,000 for a couple or family, the tax offset reduces to 10% and the expenses threshold increases to $5,343.

    The family income threshold is increased by $1500 for each dependent child after the first.

    See details for eligibility in claiming the offset entitlement at net-medical-expenses-for-disability-aids,-attendant-care-or-aged-care-2016