Monthly tax tip:
Travel expenses are an ATO audit target this year as many taxpayers are incorrectly claiming them. Travel from home to work is generally not tax deductible unless transporting bulky tools and equipment when there is no secure area to store them at your workplace. Other travel situations e.g. travel to another city for a work conference or training can generally be claimed. They can be claimed if they were not reimbursed by an employer, even if a travel allowance was received. There are two ways that a taxpayer can claim travel expenses. The first is simply keeping receipts for meals, accommodation, fare fees, etc and claiming what was actually spent. The other way is by claiming the reasonable amount set out by the ATO each year but you must have received an allowance by your employer. This method is more attractive as you do not need to keep receipts but you do need to show some evidence that you did spend the allowance received for work related travel e.g. a diary. If you are unsure how to keep appropriate records or if you can claim travel expenses then please contact our office for a consultation.
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