“Only the ones you want to claim as a tax deduction,” might be a common response. But that isn’t quite right. Tax rules enable you to make legitimate claims for work-related expenses of up to $300 in a financial year without needing receipts, provided:
- you have spent the money;
- the expense is directly related to earning your income;
- you haven’t been reimbursed by your employer;
- it is not of a private or capital nature; and
- you have a record of the expense (other than a receipt).
Work-Related Expense
Work-related expenses can include tools, small equipment, office supplies, union or professional association fees, uniforms, and protective clothing, among others. For instance, the cost of laundering work uniforms and protective clothing can be included without having receipts for an amount of up to $150. These costs form part of the $300 deductible limit without needing receipts.
Minor items costing up to $10 can also be claimed without a receipt, up to $200 per financial year, and are included in the $300 limit. However, if total work-related expenses exceed $300, it’s essential to keep receipts to substantiate your entire claim.
A record of the expense can be in the form of a diary that documents the amount, what you spent it on, how you paid for it, and how it relates to earning your income. These records must be retained for five years.
Car Expenses
Instead of keeping receipts for the actual running costs of your private car used for work, you can elect to claim on a cents-per-kilometre basis for up to 5,000 business kilometres. The rate is 88 cents per kilometre for the 2024-25 financial year, with a maximum claim of $4,400.
Claimable uses of your private car include:
- Visiting a client’s premises after arriving at your usual place of work.
- Working at another location that is not your usual place of work.
- Driving to a work-related conference.
You don’t need receipts to claim on a cents-per-kilometre basis, but maintaining a logbook or diary recording work-related car use is essential. Additionally, it must be a requirement of your employer that you provide your own transport.
Working from Home
With many employees working from home, the ATO offers a fixed rate method for claiming associated expenses. The fixed rate, set at 67 cents per hour, covers:
- Energy costs.
- Internet expenses.
- Mobile and landline expenses.
- Stationery and computer consumables.
Depreciation on office furniture and computer equipment is claimable on top of the fixed rate but requires receipts. To qualify for the fixed rate method, you must maintain a timesheet or diary of hours worked from home and keep records for five years.
Stay Compliant
The ATO is vigilant about work-related expenses, and while there are specific exceptions to the need for receipts, all concessions have conditions. It’s crucial to know the requirements to ensure your claims can withstand an ATO audit.