The ATO is cracking down on taxpayers who are claiming collectively over $2 billion in “Other Work-Related Deductions”.
In theory, if an expense relates directly to your source of work or business income, then you can claim this against the income you receive from that activity.
However, be aware of these common expenses which you can very rarely claim in your tax return:
1. Childcare – the cost of raising your children is not claimable in your tax return. This includes school fees and school uniforms.
2. Tax Penalties – Although you can see it as an act of revenge, but an ATO penalty for late lodgement or failure to lodge cannot be claimed in your return. Although payments of ATO General Interest can be.
3. Daily Commutes – Travel between work and home are considered private by the ATO, and non-claimable. There are exceptions to this rule, but they are very specific.
4. Professional clothing – Accountants, lawyers and corporate loses out here. Unfortunately, professional clothing like suits, ties, and high heels can’t be claimed in your return. Interestingly, the tradie High-Vis vest, steel-capped boots and logo embroidered uniform can be claimed.
The maximum amount you can claim without receipts up to $300. However, you still need to be able to back up the amount you include in your return, even if $299.
This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice