In most situations, you can claim deductions for work-related expenses as long as your claim meets the following conditions:
you incurred the expense in doing your job
the expense is not private (for example, travel to and from work, and most meals)
you can show you incurred the expense by producing receipts or other written evidence, unless an exception applies.
However, there are some instances where you have to meet other conditions, some of which are mentioned below.
Claim the correct amount for the year
You must have incurred the expense in the year you are claiming the deduction, unless the expense relates to the decline in value (depreciation) of tools or equipment you purchased.
When claiming the decline in value of your tools or equipment, you must have used them or had them available for use in the year you are making the claim.
You can only claim that part of an expense that relates to your work.
Remember
When you complete the declaration on your tax return you are declaring that everything you have told us is true and you can support your claims with written evidence.
You are responsible for providing proof of your expenses, even if you use a registered tax agent.
Reimbursements and allowances
If your employer or any other person reimburses you for expenses you have actually incurred, the payment is called a reimbursement. An allowance is not considered to be a reimbursement.
You cannot claim a deduction for expenses you incur if those expenses are reimbursed to you by your employer – you do not include a reimbursement on your tax return.
If you claim your motor vehicle expenses from your employer using the cents per kilometre method, the amount you receive is considered to be an allowance.
Regardless of the amount of an allowance you receive, you can only claim a deduction for the expenses you paid. That is, if you paid $80 in work-related expenses and you received a $100 allowance for those expenses, you can still only claim $80.
If you receive a car allowance or an award transport payment from your employer you must record the amount you received on your tax return as income at item 2.
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