According to a report by the Daily Mail on October 10, Australian taxpayers can claim deductions when filing their tax returns even if they do not have receipts, as long as the total value of all work-related items in the financial year does not exceed 300 Australian dollars.
With just three weeks to go before the Oct. 31 tax filing deadline, many people are scrambling to find receipts that can prove work-related expenses.
(Image source: Daily Mail)
However, the Australian Taxation Office (ATO) has a rule that allows deductions to be claimed even without receipts if the total amount of work-related expenses does not exceed $300, including items such as notepads, highlighters, calculators and work clothes.
"If you declare a total amount of $300 or less for work-related expenses, you can claim a deduction without documentary proof," the IRD said. But you must be able to prove that you actually spent the money and explain how you calculated the amount of the declaration. ”
However, the $300 rule does not apply to the declaration of car-related expenses, food allowance and travel allowance.
H&R Block's director of tax communications, Mark Chapman, said the $300 "shortcut" rule meant that taxpayers would not need to provide receipts and invoices as proof if the IRD made an inquiry.
(Image source: Daily Mail)
He told the Daily Mail: "This provision is intended to provide convenience for those who declare small work-related expenses. But keep in mind that the $300 limit applies to all expenses associated with your job, not individual items. ”
If all work-related expenses exceed $300, receipts and invoices will be required for the 2023-24 financial year.
Items valued at $300 or less can be claimed for deductions in a financial year, including office chairs and desks purchased from home.
Chapman explains: "Yes, if it's a capital asset and the cost is less than $300, it can be deducted immediately as long as the expenditure is related to your work. But you can only declare work-related expenses. In the case of private or household expenses, you can expect the tax office to refuse the deduction and may even impose a fine. ”
If the price of the item exceeds $300, it will need to be deducted in instalments over several tax years.
The picture and text have nothing to do (Image source: Internet)
In addition, small businesses can claim a full deduction for purchases of items valued at up to $20,000 in a financial year, with this immediate asset deduction policy extended until June 2025.
This means that this special policy will cover the 2023-24 fiscal year, which is the fiscal year in which this month's tax returns are due. However, the IRD is cracking down on false declarations, arguing that there is an $8.7 billion gap between the amount of tax actually due to Australians and the amount currently being collected.
"If the IRS suspects that an expense is not genuine, they will ask to see a certificate," Chapman said. This could be a separate inquiry, or it could be a full review or audit of your tax return. ”
People who work from home will need to keep a log or a copy of their shift schedule to deduct it at a flat rate of 67 cents per hour, which already includes mobile phone and internet charges.
Records can be in the form of logs, timesheets, or copies of employee shift schedules. However, those who want to declare heating and cooling bills will need to provide a bill and calculate the proportion of household space used for work, as well as the corresponding energy costs.
Individuals must file their tax return by Oct. 31 or register with a tax agent to get the opportunity to extend until May 15.