Generally , deductions must be :
• Related to your business and not personal . If the expense is part business and part personal , your phone for example , you can only claim the proportion that was work-related . Here are some deductible items that are included : o Insurance o Utilities o Continuing education and subscriptions o Tools of trade ( what you need to do your job , such as laundry , uniforms , cleaning goods and stationery ) o Maintenance , repairs and upkeep o Travel expenses ( if you go to clients ’ homes or workplaces ) o Stock for sale and replacement stock o Computers and other equipment
IF THE EXPENSE IS PART BUSINESS AND PART PERSONAL , YOUR PHONE FOR EXAMPLE , YOU CAN ONLY CLAIM THE PROPORTION THAT WAS WORK-RELATED
• Must directly relate to earning your income ( for example , a work conference but not your holiday !)
• Must be provable by a record ( you must have a receipt or other record )
• Has not been reimbursed by an employer ( your manager already paid you back for the coffee for the client !).
You can also claim the following nonwork-related deductions :
• Personal superannuation contributions
• Donations and gifts
• Expenses related to earning income from investments
This list is just a general guideline , and every business will be different . It is always best to check your own circumstances before lodging a tax return . For more information on claiming deductions please see the deductions section of the ATO website .
If you have any questions on your taxable income ( assessable income minus deductions ) always contact the ATO or go to their website , as there is so much information available for you . Don ’ t guess the answer or assume they won ’ t check because they always do . Here is a link to the ATO website .
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