myDeductions

Do you have a question about myDeductions?

Check myDeductions – FAQs for individuals and sole traders or myDeductions – FAQs for tax professionals for answers to frequently asked questions, or ask your question here.

We endeavour to respond to questions as soon as possible during office hours, but some questions may require further investigation. In these instances, we will advise you if there is going to be a delay in responding.

Due to privacy and secrecy laws, we cannot answer questions or disclose information specific to your personal tax affairs on social media. You will need to contact us by telephone to discuss your individual circumstances.

All information provided on our social media pages is general in nature and subject to change over time. Although the information we post is current and accurate at the time, we recommend you always check its currency and relevance to you.
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  • I have made a donation to a reputable NZ based charity. Can I claim a tax deduction for this?

    Megan J asked 5 days 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 5 days 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 12 days 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 12 days 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 11 days 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 12 days 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 12 days 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 20 days 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 23 days 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 28 days 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 28 days 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 27 days 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 28 days 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 27 days 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 about 1 month 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 about 1 month 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 about 1 month 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 about 1 month 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 about 1 month 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 about 1 month 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 about 1 month 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 about 1 month 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 about 2 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 about 1 month 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 about 1 month 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 about 1 month 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 about 2 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 about 1 month 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 about 2 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 about 2 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 about 2 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 about 2 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 2 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 about 2 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 2 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 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 about 2 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 2 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 2 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 2 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 2 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 2 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 2 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 2 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 2 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 2 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 3 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 3 months 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 3 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 3 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 3 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 3 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 3 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 3 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 3 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 3 months 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 3 months 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 3 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. 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 3 months 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 3 months 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?

    3 months 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 3 months 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 4 months 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 4 months 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 4 months 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 4 months 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 4 months 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 4 months 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 4 months 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 4 months 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 4 months 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 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. 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 5 months 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 5 months 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 10 months 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 about 1 year 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 6 months 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 9 months 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 about 1 year 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 over 1 year 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 about 1 year 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 about 1 year 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 over 1 year 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 over 1 year 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 over 1 year 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