Storing Correct Records for Work-Related Expenses
The Australian Taxation Office (ATO) is urging taxpayers to prepare for the new financial year by organising their work-related expense claims and keeping the necessary records.
What does this mean?
Work-related expenses are a major category of deductions, with millions of claims each year. To ensure all expenses are claimable and to reduce tax management costs, taxpayers are encouraged to follow the below steps.
- Understand what work-related expenses can be claimed and what records are needed.
- Store receipts and records in one place. Records can be kept as a paper version, an electronic copy, or a ‘true and clear’ photo of an original record.
- The ATO also recommends keeping records for five years from when the tax return is lodged.
Working-from-home expenses
With more people now working from home, maintaining accurate records is essential for claiming deductions. You have two options for calculating your working-from-home expenses:
Fixed Rate Method
- Record the number of hours worked from home for the entire financial year (1 July – 30 June).
- Keep at least one record for each type of additional expense included in the fixed rate (e.g, an electricity bill).
Actual Cost Method
- Track all additional expenses incurred while working from home such as utilities and depreciation of home office equipment.
- Keep detailed records showing how much of these expenses are related to work.
- Document the time spent working from home, this could be in the form of a timesheet, diary or any other reliable record.
Please contact our office on 07 5561 8800 if you need any assistance with your record-keeping requirements, such as logbook requirements for car expenses.
Our team is here to simplify the process for you, we can assist with keeping precise records, choosing the best method for calculating deductions and ensuring compliance with ATO guidelines. To make the most of your work-related expense claims, reach out to your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au.