Importantly, the ATO’s recent draft ruling on the deductibility of work-related expenses reiterates that an employer’s requirements do not determine the question of deductibility.
Specifically, a number of examples contained in the draft ruling confirm that a WRE expense may be deductible without an employer requiring the expenditure. For example, a taxpayer incurring expenditure in relation to a course directly connected to their current employment (without their employer’s specific support) may still be in a position to claim self-education deductions.
Alternatively, expenses may be non-deductible despite an employer’s specific directions, such as a restaurant requiring its waiters to dress in ‘black and whites’, or support such as where an employer encourages a dental practice receptionist to undertake a ‘Certificate in Dental Assisting’ so as to open up a new career opportunity.
In our accounting practice we use the latest software programs to ensure employees get the most out of their tax returns. Our Deduction Finder program will tell you in black and white which deductions are allowable for your given profession or occupation in the current financial year. That’s taking the guess work out of it, isn’t it?
Saving on tax is one thing. Investing your tax savings wisely is another thing altogether. To get a better understanding of your current financial position and what it means for your retirement fund in future, contact us for a FREE Financial Strategy Session. Remember, it’s not about how much money you have, it’s about how you spend it that determines your wealth.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.