What Can I Claim on Tax?

Date posted: Thursday, January 2, 2014

Are you planning on claiming your new iPad as a tax deduction? Thinking you’ll claim your latest shoe splurge on your next tax return? Or are you just too confused to try and claim anything at all? We don’t blame you.

Tax return time can be overwhelming. Questions of what you can and cannot claim are endless. Here are just a few, we get asked daily…

• Can I claim my new dress as a deduction on tax if I bought it for a work event?
• Can I claim my work shoes on tax if they are work boots only?
• Can I claim tools and equipment I bought for work on tax?
• Can I claim my holiday on tax if I had to do some work while I was there?

…and the answers can sometimes seem even more confusing.

Save yourself the iPad/shoes/family getaway post-purchase regret and read Pakenham Taxation’s list of what you can and cannot claim on your tax.

What you CAN claim:

• Work travel expenses. This includes meals and accommodation while on a business trip, the cost of travelling between two workplaces and the cost of transportation of tools or equipment used for work.
• Occupation-specific clothing. The cost of uniforms, protective clothing and other items only worn for work purposes are all included. The costs associated with cleaning and maintaining ALL work clothes are also tax deductable.
• Tools, equipment, trade books or journals and other items required to fulfil a job or earn income. Calculators, Computers (this includes iPads!), filing cabinets and technical equipment are all included. Even better news; the costs of repairing or insuring these items can also be claimed!

What you CANNOT claim:

• Private travel. This includes costs associated with travelling to and from work as well as family holidays. This means if you’re planning on claiming your Hawaiian getaway as a tax deduction by slipping into a Waikiki conference for a few days, think again.
• Most clothing items. Unfortunately, if your employer requires you wear clothing of a certain brand, style or colour this is not tax deductable. The rule of thumb when it comes to claimable clothing is if your outfit makes your profession easily distinguishable (i.e. a chef’s uniform) then you can most likely claim it, otherwise it’s a no-go.

Still have questions? You can find out more by giving us a call, sending us an email or booking in for a visit. We specialise in servicing individuals and businesses within the Cardinia Shire and outer south-east suburbs including Pakenham, Berwick, Cranbourne, Officer, Beaconsfield, Garfield, and Drouin.

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