What kind of work related expenses can I claim as deductions?
- Employees are entitled to claim deductions for expenses paid in order to earn their income but cannot claim deductions if the expenses are private or capital in nature.
- The general rule is that if you need to spend the money to earn the income then the expense may be an allowable deduction.
- You will need to show that expense was needed to earn income and that it is not private in nature. You will need to substantiate the claim with written evidence.
- Expenses that are generally regarded as private in nature and therefore non-deductible include:
- childcare expenses;
- personal grooming expenses such as hairdressing, cosmetics; and
- food and living expenses.
- The Australian Taxation Office (ATO) has set out their requirements and outlined the general principles for claiming work related expenses at the following website addresses:
Read some more FAQS from our Income section