Tax Claiming $300 work expenses and $200 small items and $150 laundry without receipts

zillah on 28/10/2017 - 08:43
Last edited 28/10/2017 - 09:34

https://www.ozbargain.com.au/node/256913

Dear folks

Yes I know all those expenses ($300 and $200 and $150) needs to be work related and have a diary entries records.

While I was reading book " PREPARE TAX DOCUMENTATION FOR INDIVIDUALS" I came across those deductions

I have a specific question can a taxpayer claim all the three below deductions ((work related)) if he/she doesn't retain receipts (if there are receipts different story not related to my thread) :

A- $150 or less for laundry of wok uniform.

B- $200 for small items (say magazine)each one less than $10 but in totals not exceeding $200 for a financial year

C- $300 or less for USB, printer,,,,tools (work related)

Means in total can he/she claim : 150+200+300 = $650 or only he/she can claim 150+300 = $450 ?

Thanks

Financial

Comments

  • k-rokfm on 28/10/2017 - 08:48

    I remember being told it was $300 all up, but that may have been being cautious rather than going all out on everything. If in doubt don’t claim it

  • mskeggs on 28/10/2017 - 08:52
    +1

    That is all fine, as long as the claims are genuine and you keep a diary or other record of the expenses incurred.
    The "no receipts" rule recognises that for a low number of minor expenses, keeping paper work is a hassle.
    But quite fairly, if you wish to claim above $300 you need to be able to substantiate the claim.
    One way, that confers most legitimacy is to have receipts, but if you have other evidence that can be used too.
    You can claim an iPhone or a car with no receipt at all if you can show other evidence.

    You just need to be able to demonstrate if audited that the claim is legitimate.
    Records for a car or iPhone I think would be reasonable might be evidence of paying stamp duty when you transferred the rego, a stat dec stating the purchase price, a service history noting mileage soon after it was purchased, a bank statement showing an amount close to the purchase price was withdrawn etc. and records of your cell plan charges etc. for a phone.

    • zillah on 28/10/2017 - 09:44

      mskeggs

      I have just found this

      As per the link below maximum you can claim is $300+$200 = $500 ,,,,,$150 for laundry would be included into $300

      http://www.daviddouglas.com.au/TaxRecords.htm

      TAX RECEIPTS SUBSTANTIATION EXCEPTIONS

      $150 tax receipt exception for laundry or you may use a reasonable basis to calculate the amount e.g. $1 per load for work related clothing.

      $300 tax receipt exception for work expenses. This includes $150 for laundry but does not include allowances or motor vehicle tax set rate per kilometre method.

      $200 tax receipt exception for expenses less than $10. This is on top of the $300 exception. This usually applies to small tools, office stationery and sundry expenses. You must keep a diary note of the expense.

      Home Office tax receipt exception for 45c per hour. You must keep a diary of hours per week for 4 weeks.<<

      • mskeggs on 28/10/2017 - 11:15
        +1

        This is just the same advice written a different way.
        Receipts are an easy way to show expenses, but if you have alternative evidence, you can seek to use that.
        You can be reasonably confident that at audit time, receipts will be accepted.
        If you are relying on a diary entry, etc, then the more info you have, the better.

        personally, I suggest making accurate deductions that you can thoroughly demonstrate.
        If you are claiming laundry for an eligible uniform or similar, then make it reasonable and you will be fine.

        You will see the ATO isn't giving you black and white answers here because they also just want you to be truthful and reasonable. they will not guarantee you will be fine with exactly $300 of non-receipted expenses plus exactly $150 of non-receipted laundry, because it obviously looks like somebody trying to exploit the rules.
        Just claim what you actually spent and can justify.

  • 87percent on 28/10/2017 - 08:53

    Accountant could answer all these questions

    • mskeggs on 28/10/2017 - 08:57

      My tax guy charges a couple of hundred to do my return. Seems a lot to pay for professional advice for deductions of $650, so under $325 worth of refund.

  • zillah on 28/10/2017 - 09:20

    Thanks for the input

    Another question

    In the quote below

    http://onlinetaxsolutions.com.au/2013/08/tax-deductions-with…

    The average Australian salary/wage tax payer is in the 32c in the dollar tax bracket. An extra $200 tax deduction will mean around an extra $80 in your tax refund. <<
    Mathematically how $80 calculated from $200 ?

  • zillah on 28/10/2017 - 09:28

    Presumably was originally written about the 40c tax bracket. Just a sloppy error.<<
    Yes could be the case
    Thx

  • chumlee on 28/10/2017 - 11:27
    +2

    You think the ATO cares bout someone claiming a few hundred $'s in deductions they may or may not be entitled to?

    There are people out there claiming thousands/tens of thousands of $'s in BS deductions. They are the ones on the radar.

    ATO auditors get paid $100K+. Getting $150 from Joe Blow for an incorrect deduction gets them fired. That's the job of the super computer within the ATO & even that cannot be bothered.

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