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Tax Season Reminder: An Important Update from the ATO

May 28, 2024

As we approach the end of the financial year, it is time to prepare your tax return. 

To assist you in ensuring your information is accurately presented, the Australian Tax Office has forwarded to us a couple of simple guidelines to help make this process as smooth as possible.

Let’s talk record-keeping

Just like that, tax time is here, so, it’s time to start digging out those receipts!  Or, if you used the ATO’s myDeductions tool.  All you will need to do is whip out your device of choice.

Here are a couple of things to remember:

  • Having records of your work-related expenses is essential.  If you don’t have the proof to support your claim, you can’t claim it.
    • A bank or credit card statement (on its own) is not enough evidence to support a work-related expense claim. In most cases, you will need a receipt.

    Speaking of receipts, they must show all of the following

    • The cost
    • The supplier
    • The date of purchase
    • The nature of the goods and/or services.

    You may need to keep other records depending on the expense type, such as a logbook of your car journeys or records of the hours you work from home.

    To give you a hand, the Australian Taxation Office (AT) has provided a handy guide for beauty therapists to help you understand what you can and cannot claim this tax time.

    Have further questions about your work-related expenses?  Speak to a registered tax agent, or check out the ATO website for information on:

    • Car expenses
    • Claiming a working-from-home deduction
    • Clothing and laundry expenses
    • Keeping records for work-related expenses

    How to correctly claim tools and equipment

    If you are planning to claim a deduction on tools and equipment, here is a guide to help you get your deductions right:

    Claim deductions

    • To claim a deduction for tools or equipment, you must use the tools for work-related duties.  When you do it for both private and work purposes, you will need to apply your deductions. You can only claim the work-related use of the item as a deduction.

    Types of tools you can claim

    • Depending on your job, you might be able to claim a deduction for hand and power tools, cameras, musical instruments, safety gear, technical instruments, electronic devices, computers, safety wear, office furniture, and more.

    Calculating your deductions

    • Tools and equipment depreciate over time.  For items that cost $300 or less, you can claim an immediate deduction for the whole cost. 
    • For items over $300, or sets totalling more than $300, you can claim a deduction for the cost over several years (decline in value).  Check the ATO’s depreciation tool to help you work your claim.

    Records

    • Remember to keep track of your receipts and provide a diary or similar record to show how you worked out your percentage of work-related use.

    With a little careful review, you can ensure that your business benefits from claiming your legitimate deductions within your tax return.  

    Find out more information

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