In this edition:
ATO warns no 'free pass' on car expenses
ATO Assistant Commissioner Kath Anderson, said taxpayers often trip up making claims they can't justify, believing they are entitled to make a "standard" claim.
Some people think they are entitled to a 'standard deduction' for car expenses, using the cents per kilometre method, but this is not the case. While it's true that you don't need written evidence for claims of up to 5000 kilometres per year, you do need to be able to show that you were required to use your car for work, and how you calculated your claim.
While we have no issue with people using the cents per kilometre method and we expect that most claims at this threshold may be legitimate, but we are reminding people that there's no such thing as a 'free pass' when it comes to deductions.
Car expenses incurred performing work duties are generally deductible, but trips between home and work cannot be claimed without a good reason, such as carrying bulky goods or equipment. If you make a claim for transporting bulky tools, you need to be able to prove you were required by your employer to take these items to work, and that there was no safe place to store them. For more details see the ATO media release Car Claims in the Crosshairs.
Travel expenses you may be able to claim include:
If you are paid a travel allowance:
To claim meal, accommodation and incidental expenses you incurred when you travelled away overnight for work:
If you
travel for six or more nights in a row, you may need to keep a travel diary in which you record the dates, places, times and duration of your activities and travel. The purpose of a travel diary is to allow accurate calculation of the employment-related and private elements of your trip. If the travel was partly private, you can claim only the work-related part.
If you have any questions about any of these opportunities, please contact your Goodwin Chivas & Co. representative.
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