John’s Blog – Is The Expense Tax Deductible


A question that I always get asked is “what is tax deductible?”

The rules around what you can claim as a work related tax deduction are fairly rigid.

The first rule that everyone should note is that there must be a connection (or nexus as the ATO describe it) between the income that you earn and the outgoing that you have incurred. Is the item that you are claiming connected to your job and is the item used 100% for work or a proportion thereof. You must ensure that you can legitimately prove that the item was required to be used in your job, that you have the evidence of purchase i.e. an invoice or receipt, and you can also show that the employer has not reimbursed you for this expense.

We obviously recommend that you should be cautious in the preparation of your income tax deductions.

Some of the deductions that we believe the ATO will look more closely at this year include the following:

  • Mobile phone claims
  • Home internet expenses
  • Newspaper and online news access
  • Landlords claiming interstate travel costs
  • Hand cream
  • Gym memberships (except Australian Defence Forces)

If you require any clarification please contact us on 02 4969 4699 or visit our website for the “Is it tax deductible?” flyer.

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