Show download pdf controls
  • myDeductions - information for tax professionals

    The ATO app's myDeductions tool makes it easy and convenient for your clients to keep tax-related records in one place. The record keeping tool allows individuals and sole traders to keep track of their general, work-related and sole trader deductions (and business income).

    Your clients can email you a spreadsheet with details of each entry, or send you their complete back up file containing their records and photos of receipts. From 1 July each year they can also upload their records to us for you to access through the practitioner lodgment service (PLS).

    Benefits of your clients using myDeductions include:

    • receiving client income (sole traders only) and expenses data in a single spreadsheet
    • being able to more easily sort through expenses to determine what is claimable
    • removal of time-consuming data entry, so you can spend more time providing your expert advice.

    The new functionality is designed for sole traders with simple tax affairs.

    The following clients can use the tool, however they should not upload their records as they will be prefilled into the incorrect labels in their tax return:

    These clients can send you a spreadsheet (CSV format) of their detailed deductions for your information.

    If you have clients who have trouble keeping records and who don't currently use any record-keeping software, you may like to encourage them to use myDeductions.

    Receiving your client’s myDeductions data

    If your client uses the upload feature in the myDeductions tool, you can access their data through the PLS. It will display the same information available to them in myTax. Some of their information may be consolidated for pre-filling.

    Alternatively, your client can email you a spreadsheet in CSV format directly from the tool. This will provide you with the client's unconsolidated income and expenses but will not include photos.

    See also:

    Accessing client’s photos

    Your client can send you any photos they stored on their device via the myDeductions tool.

    Apple and Android

    Your client must complete a back up within the ATO app. Once completed, your client can send you photos and other data which will be available in a .zip file. If you only require one or two photos, your client can open the .zip file and send you the individual photos.

    Alternatively, your client can take a screenshot of the photo or photos and send them directly to you.

    Windows

    Your client will need to tap on the ‘View and save data and photos’ option from within the myDeductions tool, and then select ‘Save photos’.

    This will save the photos they have stored on their device via the myDeductions tool into their device’s gallery. They can then select photos and send them to you.

    Back up help

    Your client’s myDeductions data is stored on their device

    When your client enters information or captures a photo into the myDeductions tool, it is stored on their device. It is not automatically stored in the cloud or sent to us.

    We highly recommend your clients regularly back up their data in case their device is lost or broken.

    Backing up data and photos on Apple or Android devices

    Your client can use the back up option in the myDeductions tool or follow the back up process for their device.

    To make backing up quick and easy, your client can connect the ATO app to their personal iCloud (for Apple users) or Google Drive (for Android users) account.

    See also:

    Your client can create a back up file of their data in myDeductions by selecting 'Back up' and following on screen options. A .zip file will be created which includes:

    • their photos
    • a spreadsheet with all of their data
    • a computer system file that can be used to import their data (including photos) back into the tool
    • a text file with instructions on how to import their back up data back into the tool.

    When your client selects 'Back up' they can choose where to save or send their data – a cloud service, on their device, or via email.

    If they choose to save the file on their device, it is recommended they also save this file to another location in case something goes wrong.

    Backing up on Windows

    Your client can back up their data (not including photos) by connecting the ATO app to their personal OneDrive account. To set this up or to initiate a back up once connected, they will need to go to:

    • myDeductions > Settings > Back up.

    To back up their photos, they will need to go to:

    • myDeductions > Settings > View and save data and photos > Save photos.

    Your client's photos will be saved to their 'Saved pictures' folder on their phone. It is highly recommended that these photos are saved to another location, for example their personal cloud, in case they lose or damage their phone.

    Restoring on Windows

    To restore a back up file, your client will need to go to their OneDrive account and find the latest ATO back up file. They will need to select the file, then select ATO app from the list of apps to open the file with.

    Photos can't be restored into the ATO app on a Windows phone.

    Receiving your clients' myDeductions data

    Your client can share their data with you via email at any time. From 1 July 2017, your client can also upload their completed data to us which you can access through the PLS. You can use the data to lodge your client’s tax return.

    Your clients must ensure they have the latest version of the ATO app to upload.

    Share via email

    You might want your client to share their myDeductions data with you throughout the year. They can do this via email.

    Data can be shared with you by selecting Settings > Share via email if your client is using an iPhone or an Android device. Windows phone users can share their data with you by selecting Settings>View and save data and photos>View data.

    Data for one or multiple financial years can be selected to send in one file. A spreadsheet is automatically created.

    When selecting share via email, some devices provide options for how data can be shared - for example email or other file sharing options like dropbox.

    Using the 'Share via email' option to send data to you lets you and your client see all of your records and trip details. Photos are not included. If you want a copy of your client's photos, they'll need to create a back up file to send to them (iOS or Android).

    Record keeping

    Recording income in myDeductions

    Your clients can use myDeductions to record their income if they are a sole trader with simple tax affairs. This means they must not have:

    When using myDeductions your clients should only record their business income. Any other income they earn must be entered directly into their tax return, such as:

    If your client uploads their myDeductions records to us at the end of the financial year, the income they recorded will be pre-filled into the ‘Other business income’ label of their tax return.

    See also:

    How we access and use your clients' myDeductions data

    The data is saved to your client’s device and won't automatically be sent to us. We cannot see their myDeductions data unless they choose to send it to us.

    Your client’s completed data will only be sent to us if they choose to upload it. The upload only includes data from your client’s income, expenses, trips and logbooks, not the photos.

    We may use the myDeductions records your client uploads to verify the information in their tax return, and for analytical purposes.

    Their record-keeping obligations don't change – they need to keep a copy of their data and any associated evidence, such as photos, to substantiate their claims.

    Consolidating myDeductions data

    The uploaded data provided to you through the practitioner lodgment service (PLS will be the same information available in myTax. The data is available as soon as your client has successfully completed the upload.

    While individual records are uploaded, they may be added together so they can be pre-filled within the client's tax return.

    If you would like to see what records went into each of the deduction labels, ask your client to send you their upload report from the ATO app. They can also send you a spreadsheet using the 'Share via email' function.

    To view the report, they need to go to ‘Saved results’, which can be found by scrolling to the right of the icons on the ATO app’s ‘Home’ screen.

    Table 1 How uploaded myDeductions records are pre-filled

    Label

    How records will be pre-filled

    Pre-fill limit

    Work-related car expenses

    Each vehicle will be listed separately

    A calculation method may need to be selected if your client is eligible to use either the logbook or cents per kilometre method

    Maximum of 10 vehicles

    Work-related travel expenses

    Individual expenses rolled up and grouped by sub-type for each vehicle

    Display sub-category amount (max. 7)

    Display at vehicle level (up to 20 minus number of sub-categories)

    Work-related uniform expenses

    All items rolled up and grouped by sub-types

    Up to 4 entries (sub types)

    Work-related self-education expenses

    Individual expenses rolled up and grouped by sub-types and vehicles

    Up to 3 entries for sub-categories:
    - General expenses
    - Repair expenses
    - Non-deductible expenses

    Display at vehicle level (up to 20 minus number of sub-categories)

    Other work-related expenses

    If there are 50 or less records, each record is displayed

    If there are more than 50 records, roll up and group by sub-type

    < 50 records, all records will display

    >50, all records are rolled up and displayed at the sub-category level

    Gifts or donations

    If there are 20 or less records, each record is displayed

    If there are more than 20 records, roll up into a single entry

    < 20 records, all records will display

    >20, all records are rolled up into one. Display 1 entry.

    Cost of managing tax affairs

    If there are 20 or less records, each record is displayed

    If there are more than 20 records, roll up into a single entry

    < 20 records, all records will display

    >20, all records are rolled up at sub-category level

    Interest deductions

    If there are 20 or less records, each record is displayed

    If there are more than 20 records, roll up into a single entry

    (available from 1 July 2017)

    < 20 records, all records will display

    >20, all records are rolled up into one. Display 1 entry.

    Dividend deductions

    If there are 20 or less records, each record is displayed

    If there are more than 20 records, roll up into a single entry

    (available from 1 July 2017)

    < 20 records, all records will display

    >20, all records are rolled up into one. Display 1 entry.

    Other deductions

    Individual expenses rolled up and grouped by sub-types

    (available from 1 July 2017 )

    Up to 4 entries

    Election expenses

    All election expenses rolled up and consolidated into a single entry. Rolled up from myDeductions expenses type 'Other deductions,' sub-type 'Election expenses'

    (available from 1 July 2017)

    Up to 1 entry

    Business Income

    All income rolled up and consolidated into a single entry

    (available from 1 July 2017)

    Up to 1 entry

    Business Repairs and maintenance

    All expenses rolled up and consolidated into a single entry

    (available from 1 July 2017)

    Up to 1 entry

    Business Motor vehicle expenses

    All expenses and calculated trip values will be rolled up and consolidated into a single entry

    (available from 1 July 2017)

    Up to 1 entry

    Business All other expenses

    All expenses rolled up and consolidated into a single entry

    (available from 1 July 2017)

    Up to 1 entry

    myGov account needed for your client to upload their data

    Your client must have a myGov account that's linked to us in order to upload their myDeductions records.

    A myGov account is not needed when your client uses the Share via email function to send their data directly to you.

    See also:

    Watch:

    How to create a myGov account and link to the ATO

    Uploading data

    Only your client's completed records, including income (sole traders only), expenses, trips, and logbook data are uploaded, not photos.

    MyDeductions records can only be uploaded to the ATO once every financial year. Once they upload, they'll no longer be able to amend that year's information within myDeductions.

    However, there is no limit as to how many times your client can share their data via email with you.

    Checking your clients' expenses uploaded correctly

    After uploading, your client can access the upload report from ‘Saved results’ on the ‘Home’ screen. The upload report shows which deduction label and under which item each of your client’s records were pre-filled into their tax return.

    By selecting the report, your client will have the option to:

    • View result’ – show the report on the device screen
    • Share via PDF’ – convert the report into PDF to view, print or share (for example via email, dropbox, Google drive or iCloud)
    • 'Share via email' – send an HTML version of the report via email
    • 'Delete result' – permanently delete the upload report.

    Dealing with errors in myDeductions

    For all troubleshooting for individuals and sole traders, see Specific myDeductions information for individuals and sole traders.

      Last modified: 01 Jul 2018QC 46409