2018 EoFY: 11 deductions you probably can’t claim
The end of financial year is once again upon us so here’s a list of things that probably can’t be deducted.
- Generally, trips between work and home can’t be claimed as a deduction – it’s considered private travel. This is true even if it’s minor work-related activities between home and work (such as collecting mail), work outside normal business hours, are on-call or don’t have access to public transport.
- If car expenses are claimed based on transporting bulky tools or equipment, it’s not enough to simply choose to carry a few tools. In order to make a claim, it needs to show:
- bulky tools are needed to do the job
- the employer requires the equipment to be transported
- there is no secure area to store the equipment at work.
- A deduction for car expenses that have been salary sacrificed cannot be claimed.
- Meal expenses for travel cannot be claimed unless you are required to work away from home overnight.
- A deduction for private travel cannot be claimed. If a trip was for work and personal reasons, only the work-related portion can be claimed.
- A deduction for every day clothes bought to wear to work cannot be claimed (for example, a suit, black pants or a white shirt), even if it’s a requirement to wear them by your employer.
- A flat rate cannot be claimed for cleaning eligible work clothes without being able to show how the cost is calculated.
- A deduction for higher education contributions charged through the HELP scheme cannot be claimed.
- A deduction for self-education expenses cannot be claimed if the course or study doesn’t have a direct connection to a current (not future or desired) employment.
- A deduction for the private use portion of phone or internet expenses cannot be claimed – only the work-related portion can be deducted.
- An up-front deduction for tools and equipment (eg, a laptop or safety equipment) that cost more than $300 cannot be claimed. However, the deduction claim can be spread of a number of years (depreciation).
The ATO website has lots of information about what you can and can’t claim as a tax deduction, visit ato.gov.au/deductions.