Claiming Deductions 2020 – Quick Guide
Basic rules for claiming:
- you must have incurred the expense in 2019–20.
- you must have spent the money yourself and were not reimbursed
- the expense must be directly related to earning your income
- you must have a record to prove the expense.
- you received a bill or invoice for an expense that you were liable for (even if you paid it after 30 June 2020)
- you did not receive a bill or invoice, but you were charged, and you paid for the expense.
These expenses may include:
- car expenses, including fuel costs and maintenance
- travel costs
- clothing expenses
- education expenses
- union fees
- home computer and phone expenses
- tools and equipment expenses
- journals and trade magazines.
Non work related deductions you may be eligible for are:
- interest and dividend deductions for investments
- deductions for gifts and donations
- a deduction for the cost of managing your tax affairs.
The $300 threshold is still in place for 2019-2020 and, importantly, to claim you need written records of the expenses.
There are other expense categories that you may also be able to claim for, subject to ATO guidelines, such as GST, expenses incurred for foreign employment and allowances. For more information, see https://www.ato.gov.au/Individuals/Tax-return/2020/Tax-return/Deduction-questions-D1-D10/Claiming-deductions-2020/
At Gladstone Accounting and Taxation, we’ll help you cut through the confusion to optimise your allowable tax deductions.