When it comes to claiming deductions for expenses in your Tax Return we usually go through a check list and ask you several questions regarding possible expenses you can claim.
For example, other than driving to and from work, do you use your motor vehicle for work related travel? Some clients say “just claim the maximum deduction you can claim”. With motor vehicle travel there’s two methods of calculating deductions. Cents per kilometre or Logbook Method and for both of these methods you need to keep records of the kilometres travelled.
Did you purchase any uniforms? “Just claim the maximum deduction you can claim”. There isn’t a maximum, you can only claim what you have receipts for.
Did you purchase any stationery? “Just claim the maximum deduction you can claim”. There isn’t a maximum, you can only claim what you have receipts for.
Did you make any donations? “Just claim the maximum deduction you can claim”. There isn’t a maximum, you can only claim what you have receipts for.
Do you see a pattern forming here? You can only claim for items you have receipts for or for items you have logbooks or records for. If the ATO feel your deductions are too high compared to others that have the same occupation as you, then this could result in an audit. If you are unfortunate enough to be audited, don’t panic, because you’ve got receipts and records for all your deductions. Right?
Author
Peta Stephen
