Tax time 2017: Sharing economy, dodgy deductions and property investors face ATO crackdown
11 Dodgy Deductions –
According to the ATO, these are the things you probably can’t claim:
- Trips between home and work. Generally you can’t claim a deduction for these because they’re considered private travel.
- 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; there is no secure area to store the equipment at work.
- Car expenses that have been salary sacrificed.
- Meal expenses for travel, unless you were required to work away from home overnight.
- Private travel, so if you take a work trip that includes personal travel you can only claim the work-related portion.
- Everyday clothes you bought to wear to work (eg, a suit or black pants), even if your employer requires you to wear them.
- A flat rate for cleaning eligible work clothes without being able to show how you calculated the cost.
- Higher education contributions charged through the HELP scheme.
- Self-education expenses when the study doesn’t have a direct connection to your current employment — your future or dream jobs don’t count.
- Private use of phone or internet expenses — only the work-related portion counts.
- Upfront deductions for tools and equipment that cost more than $300. However, you can spread your deduction claim over a number of years. That’s called depreciation.
UBER drivers and property moguls, watch out. The tax man is coming for you. READ MORE
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Get up-to-date with the new tax alerts from 1 July 2017. READ MORE
Have you got a tax checklist ready for your return? READ MORE
Find out what tax deductions and offsets you are eligible for this year. READ MORE