• Sales and marketing managers – claiming work-related expenses

    If you are employed as a sales or marketing manager, you may be entitled to claim a tax deduction for certain work-related expenses, including:

    • car
    • travel
    • uniform, occupation specific or protective clothing, laundry and dry-cleaning
    • self-education
    • other – such as phone, tools and equipment.

    There may be other deductions you can claim that are not included here.

    See also:

    Note:

    • 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.

    Income

    Individual tax return instructions questions 112 and Individual tax return instructions supplement questions 1324 deal with income. This section of the guide tells you how to include allowances, reimbursements, reportable fringe benefits and reportable employer superannuation contributions on your tax return.

    Allowances

    If any allowance is shown as a separate amount on your payment summary, include it as income at item 2 on your tax return.

    You cannot automatically claim a deduction just because you received an allowance.

    Reimbursements

    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.

    Reportable fringe benefits

    Your employer is required to report the total grossed-up amount of certain fringe benefits exceeding $2,000 (a grossed-up taxable value of $3,921) provided to you or your relatives on your payment summary.

    You do not include this amount in your total income or loss amount and you do not pay income tax or Medicare levy on it. However, the total will be used in determining whether certain surcharges apply to you, whether you can claim certain deductions, and to establish whether you are eligible for certain tax offsets and other government benefits.

    Reportable employer superannuation contributions

    Your employer is required to report the amount of reportable employer superannuation contributions on your payment summary.

    If your payment summary shows an amount at ‘reportable employer superannuation contributions’ and you do not salary sacrifice amounts to superannuation, then you should ask your employer to confirm that the amount of reportable employer superannuation contribution on your payment summary does not include compulsory contributions such as super guarantee or award contributions.

    We will not include reportable employer superannuation contributions in your income and you will not pay income tax or Medicare levy on it. However, we use reportable employer superannuation contributions to determine your eligibility for some tax offsets, the government super co-contribution and other government benefits, and whether the Medicare levy surcharge applies to you.

    See also:

    Work-related deductions

    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.

    If you are claiming a deduction for an expense that you incurred partly for work and partly for private purposes (such as mobile phone costs), you can only claim that portion of the expense that relates to your work use.

    See also:

      Last modified: 17 May 2017QC 21828