Eleven 'Dodgy Tax Deductions'

What Not to Do: Eleven Dodgy Tax Deductions

Navigating tax deductions can be tricky, especially if you’re relying on advice from friends. To ensure you maximise your refund and avoid errors, it’s essential to follow professional guidance.

Index

1. Introduction
2. Common Dodgy Deductions
   • Home-to-Work Trips
   • Transporting Bulky Tools
   • Salary Sacrificed Car Expenses
   • Meal Expenses for Travel
   • Private Travel
   • Everyday Work Clothes
   • Cleaning Eligible Work Clothes
   • HELP Scheme Contributions
   • Self-Education Expenses
   • Private Phone or Internet Use
   • Tools and Equipment Over $300
3. Conclusion
4. About GoTax Online

Common Dodgy Deductions

1. Home-to-Work Trips

Generally, trips between home and work are considered private travel and are not tax deductible.

2. Transporting Bulky Tools

You can't claim car expenses for transporting bulky tools as a tax deduction unless:

• Your job requires you to use these tools,
• Your employer requires you to transport them, AND
• There is no secure storage area at work.

3. Salary Sacrificed Car Expenses

Car expenses that have been salary sacrificed are not tax deductible.

4. Meal Expenses for Travel

You can only claim meal expenses for travel if you were required to work away from home overnight.

5. Private Travel

When a work trip includes personal travel, only the work-related portion is tax deductible. A travel diary is required for the entire trip, not just the work-related portion.

6. Everyday Work Clothes

Everyday clothes bought for work, such as business suits or black pants, are not tax deductible, even if your employer requires you to wear them.

7. Cleaning Eligible Work Clothes

You cannot claim a flat rate for cleaning eligible work clothes without showing how you calculated the cost.

8. HELP Scheme Contributions

Higher education contributions charged through the HELP scheme are not tax deductible.

9. Self-Education Expenses

Self-education expenses are only tax deductible if the study is directly related to your current employment. Courses for future or dream jobs don’t count.

10. Private Phone or Internet Use

Only the work-related portion of phone or internet expenses is tax deductible. You need a diary to prove the work-related use.

11. Tools and Equipment Over $300

You cannot claim an upfront tax deduction for tools and equipment costing more than $300. Instead, spread your deduction claim over several years. using depreciation.  Gotax calculates this for you.

Get the Gotax App to track all your tax expenses and tax logs.  Deduction Grabber, scan the QR code now.

Conclusion

To avoid falling into the trap of dodgy deductions:

• Keep Detailed Records: Maintain thorough records and receipts for all your expenses.
• Understand the Rules: Familiarise yourself with the ATO’s guidelines on legitimate deductions.
• Use Reliable Tax Software: Tools like GoTax Online can help ensure you claim only what you’re entitled to and avoid common pitfalls.
• Consult a Tax Professional: When in doubt, seek advice from a tax professional to ensure your claims are accurate and compliant.

About GoTax Online

Our state-of-the-art eTax return system, created by taxation experts with years of in-office experience, ensures you maximise your tax deductions and get the maximum tax refund. Start your Income Tax Return now with GoTax Online!

Note: The information provided is general in nature and subject to change. Please contact one of our professionals for advice tailored to your specific circumstances.

Common Dodgy Deductions

1. Home-to-Work Trips

Generally, trips between home and work are considered private travel and are not deductible.

2. Transporting Bulky Tools

You can't claim car expenses for transporting bulky tools unless:

• Your job requires you to use these tools.
• Your employer requires you to transport them.
• There is no secure storage area at work.

3. Salary Sacrificed Car Expenses

Car expenses that have been salary sacrificed are not deductible.

4. Meal Expenses for Travel

You can only claim meal expenses for travel if you were required to work away from home overnight.

5. Private Travel

When a work trip includes personal travel, only the work-related portion is deductible. A travel diary is required for the entire trip, not just the work-related portion.

6. Everyday Work Clothes

Everyday clothes bought for work, such as business suits or black pants, are not deductible, even if your employer requires you to wear them.

7. Cleaning Eligible Work Clothes

You cannot claim a flat rate for cleaning eligible work clothes without showing how you calculated the cost.

8. HELP Scheme Contributions

Higher education contributions charged through the HELP scheme are not deductible.

9. Self-Education Expenses

Self-education expenses are only deductible if the study is directly related to your current employment. Courses for future or dream jobs don’t count.

10. Private Phone or Internet Use

Only the work-related portion of phone or internet expenses is deductible. You need a diary to prove the work-related use.

11. Tools and Equipment Over $300

You cannot claim an upfront deduction for tools and equipment costing more than $300. Instead, spread your deduction claim over several years.

Conclusion

To avoid falling into the trap of dodgy deductions:

• Keep Detailed Records: Maintain thorough records and receipts for all your expenses.
• Understand the Rules: Familiarize yourself with the ATO’s guidelines on legitimate deductions.
• Use Reliable Tax Software: Tools like GoTax Online can help ensure you claim only what you’re entitled to and avoid common pitfalls.
• Consult a Tax Professional: When in doubt, seek advice from a tax professional to ensure your claims are accurate a
  nd compliant.

About GoTax Online

Our state-of-the-art eTax return system, created by taxation experts with years of in-office experience, ensures you maximize your tax deductions and get the maximum refund. Start your Income Tax Return now with GoTax Online!

Note: The information provided is general in nature and subject to change. Please contact one of our professionals for advice tailored to your specific circumstances.

What not to do, Eleven dodgy tax deductions

Have you been talking to your mates about what they claim as tax

 deductions? Think that you're missing out? 

It’s quite easy to be confused and get it wrong. That’s why you should always be guided by tax professionals to make sure you get it done right. 

Here are our Eleven ‘DODGY DEDUCTIONS’ to cross off your list.

1. Trips between home and work. Generally, you can’t claim a tax deduction for these because they’re considered private travel.

2. Car expenses for transporting bulky tools or equipment, unless you need to use your bulky tools to do your job; your employer requires you to transport this equipment, and there is no secure area to store the equipment at work.

3. Car expenses that have been salary sacrificed.

4. Meal expenses for travel, unless you were required to work away from home overnight.

5. Private travel, so if you take a work trip that includes personal travel you can only claim the work-related portion.  A travel diary is also required for the entire time you are away, not just the work-related portion.

6. Everyday clothes you bought to wear to work (eg. a business suit or black pants), even if your employer requires you to wear them.

7. A flat rate for cleaning eligible work clothes without being able to show how you calculated the cost.

8. Higher education contributions charged through the HELP scheme.

9. Self-education expenses when the study doesn’t have a direct connection to your current employment — your future or dream jobs don’t count.

10. Private use of phone or internet expenses — only the work-related portion counts. A diary is required.

11. Upfront deductions for tools and equipment that cost more than $300. However, you can spread your deduction claim over a number of years. 

Questions? Take a read of Our FAQ's & Tax Brackets

GoTax Online! Our state of the art etax return system created by taxation experts with years and years of in-office tax experience, so rest assured, we know our stuff!

Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.