Tax Tips: Work-Related Deductions

It’s June! So End-Of-Financial-Year is fast approaching. It’s time for individuals to start thinking about preparing information required for their tax return. Work-related expenses are a key type of deduction, that are relevant to individuals. To best comprehend how you can lower your tax liability, it is important to understand what is classified as a work-related deduction.

Typical work-related expenses include the following:

• employment-related mobile phone & internet usage

• computer repairs

• printing & stationery

• home office expenses

• clothing & laundry - compulsory uniforms or protective clothing (PPE)

• union fees and professional subscriptions

• self-education

• travel

The ATO continues to check work-related expense claims and expects to see a significant increase in deductions for working from home or protective items required for work. The ATO is also expecting a reduction in claims for laundry expenses or travel expenses. You cannot claim both the cost of travelling to and from work and working from home as a result of COVID-19.

If your usual pattern of work has altered during the year due to COVID-19 or other circumstances, you may need to complete an additional record for the period your work pattern changed.

For an expense to be deductible:

• you must have spent the money yourself and weren't reimbursed

• it must directly relate to earning your income, and

• you must have a record to prove it

If you have more questions about what you may be able to claim for the 2020/21 tax year please get in contact with us. Also head to our Resources section to access our 2021 Tax Return Checklist to assist you in compiling information for your tax return.