The following community information is brought to you by the Australian Taxation Office.
Today Yangsook Lee, ATO’s employee with Korean background joins SBS radio studio to explain about Tax time.
When it comes to preparing your tax return, it pays to know what items are tax deductible.
As an Individual, when working out whether an expense is tax deductible, three Golden Rules must be met:
- Have you spent the money yourself and not been reimbursed by your employer?
- Does it directly relate to the earning of your income?
- Do you have a record to prove it?
Keep in mind; if the expense was for both work and private purposes, then you can only claim a deduction for the work-related portion.
Similarly, if you operate a small business, to help you work out if a business expense is tax deductible, you must apply these three Golden Rules:
- You must have spent the money for your business – it cannot be a private expense
- If the expense is for a mix of business and private use, you can only claim the portion that relates to your business, and
You must have records to prove it.
If your work has reimbursed you for an expense, then this is not a tax deductible item. The ATO can seek information from your employer if it suspects you have claimed a deduction for an expense for which you have already been reimbursed.
Another tip is to remember to keep thorough records, including any receipts to help substantiate your claims.
For more information on what expenses you can claim and what paperwork is required to visit ato.gov.au/deductions or have a chat with your tax agent.
If you need some help with your tax return, a free Tax Help service is available in many local community centres. Some centres can assist people who speak languages other than English. Call 13 28 61 to find your nearest Tax Help centre.
You can also speak with a tax officer in your native language by phoning the Translating and Interpreting Service on 13 14 50 and ask to be connected to 13 28 66.
The full interview is available on the podcast above.
