WORK RELATED EXPENSES – GET YOUR DEDUCTIONS RIGHT!

We have advised previously that the ATO are cracking down on Work Related Expense claims.

To explain further, the ATO apply the following General Principles with regards to Work Related Expense deductions:

• Employee’s purposes or reason is not enough to establish deductibility

• Because an allowance is received, doesn’t mean it’s deductible

• Ordinary costs of travelling between home and work are private

• Where relocation costs are preliminary to work, they are not deductible

• Travel expenses incurred in performing the employee’s work activities where no part of them is private, domestic or capital are fully deductible

• Where an expense is part private or domestic in nature, it must be apportioned appropriately

Not sure what you can or cannot claim?  Give CFD a call to discuss.