Has anyone been able to find any information on ATO website re: most recent discussion for handbags that are used for business, and how it is possible to get a tax deduction? There has been some discussion online that Manbags are fine re: tax deduction, so there should not be any reason why Handbags can't be.
However, I have not come across anything official.
I use my handbag to carry things to and from work - things that are work related. I am interested in finding out more about this.
As long as you can prove it's used for your employment you can claim it as a deduction. Just put it in your tax return as stationary. If you are a PAYG worker you are fine. ATO is more interested in people claiming excessive deductions on investments and larger than normal deductions for your job description. Just be reasonable with how much you spend on it as you will find it hard to justify a LV handbag when a $100 would easily do the same job
If the bag is used to carry your 'tools of trade', then you can claim pretty much anything. If it's an expensive item then you just depreciate over a few years rather than a once off.
I believe the manbag was in reference to brief cases.
^^^ Bingo - IIRC I could write off in full in one year a briefcase up to the value of $300.
I don't see any issue with a different type of bag being claimed in principle - so long as it was designed for work use rather than personal use and was actually used for that purpose.
I only carry work stuff to work - because I need it for work.
In terms of claiming, does it fall under Stationery, or some other random section when claiming for Tax?
Well, lots of people only wear suits for work - it doesn't make them deductible (although I do think it is time to revisit that decision).
The bag really needs to be specifically adapted for the purpose of work materials.
A general bag, of either the hand, or suit varieties, are unlikely to satisfy the test - even if only used for work - if they are capable of being used for other stuff.
Just my $0.02 worth - I'm not giving you tax advice.
If this is claimable, then this opens up ideas. Work requires steel cap boots. Instead of wearing them to work, I could wear normal shoes, put the steel caps boots in a expensive bag and claim that because I'm carrying work stuff to work.
You could definitely be a little creative - a certain large employer who used to employ a large number of maintenance crew have stated that there are no lockers or cabinets for their employees to store their own tools overnight. Their union took this further, confirmed with ATO that toolbox/cabinets are now a valid tax deduction along with cars because it would be too heavy and inconvenient to carry 30kg+ of tools every day via public transport.
YMMV of course. Defo get a tax ruling before you do anything silly.
/gif man bag
Currently working in and studying tax so the idea is still fresh in my mind.
The general basis is that you need to prove that incurring the cost of the bag is the process of deriving your income, rather than only putting you in the position to derive the income.
The man bag may be able to be deductible because it carries a work laptop to work or client's office, i.e. the bag is part of the process for you to generate income, no carrying facility to bring a laptop, no way to generate income. It is easier to prove if you're in a mobile environment such as consulting and advisory than if you were to have a 24/7 office desk job. Next thing you need to prove is the proportion of time it is used for work vs personal use, and appropriately split it.
This is also the same basis why suits and travel to/from work is NOT tax deductible. The suit is not part of the process of making an income (though arguable, no one would want to use your services if you're in your joggers) and travelling to/from work only puts you in a position to work (putting your bum onto your office seat).
Disclaimer: The usual 'don't trust a random person on the internet' and do your own due diligence before you can be potentially flagged by the ATO.
Yeh it's been pretty well summed up. This isn't a "new rule" they've created, probably better referred to as a clarifying statement.
A "manbag"/briefcase isn't deductible if all it's carrying is lunch and wallet. Neither is a handbag. If the manbag/briefcase/handbag is carrying work-related items (in the tax sense, so work laptops, work books, etc) then it is deductible and always has been. But yes you would probably have to look at apportioning for any private use of the bags.
Also, the ATO can't tell you whether to spend $100 or $2000 on a bag. or a pen. or anything. it's your choice. so, so long as you can prove you used your LV handbag to carry work-related items, and kept a diary recording your work-private use, then you can claim the apportioned depreciation on it. But you'd have a hard time proving 100% work use. And if it's a tiny a$$ handbag that can't fit anything other than a wallet and phone, then no.
Do you have a link to the man bag info.
I know suits are not deductible, hand/man bags fall in the same category IMO. Unless you have bulky items that you need to carry (ie. Your job is as a cellist and you have a cello case), I don't think it should be deductible.