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  • Understanding work related expenses

    Many employees are entitled to claim deductions in their tax returns for work related expenses (WRE), but there are some common misconceptions about exactly what can be claimed.

    There are three golden rules for claiming work related expenses. Employees must:

    • have spent the money themselves and not been reimbursed
    • ensure the expense is directly related to earning their income
    • have a record to prove their claim.

    We closely monitor WRE claims for unusual patterns related to specific employers. We may contact you directly to verify certain information about what expenses your employees are entitled to claim.

    We have recently seen five employees from a single engineering firm convicted and fined for falsely claiming WRE in their tax returns.

    It is important for you to know what your employees can claim so you can give them the right advice. We have a range of information available to help you understand the rules around claiming deductions for WRE.

    See also

    Last modified: 06 May 2019QC 58784