When you are out of work, you have to spend your money due to multiple reasons. While these expenses might hurt a bit, they can help you reduce your tax liability. There are multiple work related deductions that you can claim as per the ATO (Australian Tax Office) guidelines. Here’s a no-fuss guide that can help you get your deductions right, so you can save some hard-earned cash without any headaches.

Let’s begin

What Work related Expenses Can You Claim?

• Claiming Overtime Meal Expenses

Let’s say you’ve been doing overtime and had to grab a meal because you were working through your meal break. In this case, you can claim up to $35.65 per meal in the 2024 income year as work expense. If you spend less than this on your meal, you can claim it without needing to show a receipt. Just remember, if you do spend more, keep that receipt safe as you’ll need it to claim the higher amount.

• Domestic Travel for Work

Some jobs need people to travel a lot across the country. In such cases, you can claim some deductions to keep your out-of-pocket expenses down. Whether you’re off to a big city for a conference or a regional area for a client meeting, you can claim those expenses. But these amount you can claim depends on your salary and your place of residence. These rates cover everything from your hotel to meals and even those little incidentals.

For example, if you earn under $138,790 and you’re staying in Sydney, you could claim up to $350.70 per day. That’s a good amount, right? Such amounts ensure you can claim your deductions without the need of any receipt. But if the spendings go beyond, you’ll have to keep those receipts

• On the Road: Truck Drivers

If you are a truck driver, there’s good news for you. You’ve got specific meal allowances based on the time of day. But of you don’t claim them daily, they won’t rollover. So, if you don’t use your full breakfast allowance of $28.75, you can’t just bump it to your dinner budget. The same goes for lunch at $32.80 and dinner at $56.60. Claim exactly what you spend up to these amounts for each meal, and you’re sorted. No need to complicate it; just enjoy your meal and keep track of what you spend.

• Overseas Travel

If you travel overseas, then too, you can claim work related expenses too. The ATO has set specific daily allowance for you. Benefit? You won’t have to keep tab of your expenses. These allowances are sorted into different cost groups for countries around the world. For instance, if you’re chilling in a cafe in Paris or grabbing a quick bite in Kuala Lumpur, knowing the cost group of your destination can help big time. Cost Group 5, for example, allows up to $290 per day if your salary falls between $138,791 and $247,020. This set rate can cover meals and incidental expenses, so you can focus on your work without sweating the small stuff.

Now let’s understand how to track these work related expenses to ensure you do not miss out on any claim.

How to Keep Track?

The best way to claim these items is by keeping a detailed record from the start:

• Secure Receipts

Make sure you always keep your receipts, no matter how small the purchase. That’s the best way to prove your claim if you get queries from the tax department.  

• Diary Entries

For items used for both personal and work purposes, maintain a diary. This will help you track your usage over a four-week period and establish a pattern. Then you can apply this this pattern across the year and take hassle-free claims.

• Immediate Write-Offs vs. Depreciation: Some items can be written off immediately in the tax year they are purchased. But then, there are some that might need to be depreciated over several years. For instance, as of recent tax updates, immediate write-offs are available for items up to the value of $300.

What If You Go Over?

Now, if you’re the type that likes a bit more luxury or just ends up spending more than the norm, you will need to keep those receipts. It’s a bit more work, but it means you can claim what you’ve actually spent, as long as you can justify it was all for work.

Wrapping Up

So there you have it, a straightforward guide to claiming work related expenses. Keep it simple, stick to the guidelines, and you won’t have any dramas come tax time. And remember, when in doubt, keep a receipt – it could save you a lot of hassle later on!

There you go, mate, follow these tips and you’ll be able to navigate through your work expenses claims like a pro. Stay savvy and make sure you’re getting back every dollar you’re entitled to – after all, it’s your money!

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