Tax Deductions FACT v FICTION

Income Tax Deductions Real Facts

Today’s blog is all about tax deductions FACT vs FICTION or as we say ‘proper tax deductions vs ‘mate told me at the pub deductions’. These are the top 5!

1.  You can claim driving to and from work because you work night shift or you don’t work near any public transport

This is FICTION.  There are only certain situations where you can claim a tax deduction driving to and from your work place.  Working night shift or having no public transport near work does not count.  These circumstances are considered private as you do not start getting paid for work until you arrive at work.

2. You can claim the maximum $150 for laundry no matter what

This is a no no. To claim laundry you must satisfy a couple of criteria

1. You are required to wear a logo uniform, protective clothing or work specific clothing such as those chef pants
2. You actually wash the aforementioned clothing at home i.e. you don’t leave your uniform at work each day and they wash your work clothing for you
3. The amount you claim as a tax deduction depends on how often you wash per week and if you wash your work clothes separately from your other washing

3. You can claim your coffee because your boss says you need to be alert and on the ball all day

Unfortunately, this is FICTION too.  Buying coffee might keep you awake and taste yummy too, however this is considered a personal expense in the eyes of the ATO.

4. You can’t see the computer screen properly so you can claim your glasses you bought at OPSM

This is FICTION.  Although it is good to be able to see your screen better, glasses are a personal expense and cannot be claimed.

Examples of other personal expenses that can’t be claimed are:

• Gym memberships to keep you fit and firing
• Make up and haircuts to make you presentable at work
• Black leather shoes that look nice

5. You can claim your take away lunches because you work at a different work site each day

This is also FICTION.  Meals can only be claimed as Tax Deductions in certain situations:

• You work overtime and receive an overtime meal allowance in your pay packet
• You are required to travel away overnight for your job

That wraps up our Fact v Fiction tax deductions blog.  Remember don’t always get your tax advice from your mate at the pub!

P.S. don't forget to track all those expenses by using our fantastic, beautiful and sexy GoTax Deduction Grabber App.  Just scan the QR code and you're up and running.