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Work related expenses in the ATO firing line

 

Work related expenses in the ATO firing line


This year the ATO is paying particular attention to the following work-related expenses: –

  • Overnight Travel. – The ATO is concerned that excessive claims are being made for overnight travel costs, such as transport, accommodation and meals. As a general rule, employees can claim a deduction for travel expenses they pay where –
  1. their employer requires them to perform their work away from their usual workplace for a short period
  2. it would be unreasonable to expect them to return home each day, which means they must stay away from home while they are doing that work.
  3. the ATO  considers an individual is “traveling” for work purposes, as opposed to “living-away-from-home”, when the period away is less than 21 days.
  4. however if away more than 6 nights a travel diary is required.
  5. Substantiation Exception – Under this exception, individuals can claim a deduction for the full amount of their overnight travel expenses with out receipts if certain conditions are met.
  6. See ATO TD 2014/19 for  allowable rates  
  • Expenses for transporting bulky tools and equipment between home and work. – Where an individual transports bulky tools and equipment required for their job, provided that certain requirements are met.
  1. a deduction is not allowable if a secure place for storage of equipment is provided at the workplace.
  2. if the equipment is transported as a matter of convenience or personal choice, no deduction is allowable.
  • Computers, phones and similar devices – As a general rule, the cost of mobile devices are deductible for employees who can demonstrate they are either “on call” or are required to contact their employer on a regular basis while they are away form the workplace.
Posted in Tax

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