Taxpayers should understand the word deduction, where and how to apply that deduction is very important for them. They need to understand first all rules and regulations related with claiming a deduction. It’s a tax payer and tax professional’s duty to stay up to date with all the changes for tax claims as the fiscal policy change. ATO (Australian Taxation Office) supports individuals to well understand their privileges and obligations at the time of claiming expenses related to work and constantly cheer up the people to check what kind of expenses they entitled to claim a deduction. By doing these people understand easily what to maintain throughout the fiscal year for the tax benefit.
“People should be able to claim everything they are entitled too, no more and no less.”
Thousands of people still don’t know exactly what deduction is and what to count on it to save your money. A deduction is nothing but the expenses which you gain in order to make income. Basic rules to claim your deduction related to work.
1. It is correlated to your work and shares a straight link to generating an income. As we discussed earlier that you can only claim a work-related expense for deduction, you can’t claim your private expenses like you are using a car for performing your job or your business. You can’t claim that travel cost between work and home because its private same like if you are using the mobile phone or such other tool which is used for private as well as for work so you have to define how much is your private use and how much you had used for worked.
2. You must expose the expense. A deduction is not applicable for the expenses which can be reimbursed in date of future.
3. Keep all the proof of the expense. Sometimes you need to show the proofs of your expenses so always keep your receipts, bills and other proof related to payment because it can ask from the ATO. The ATO will look closer for your any kind of unusual deduction and can contact your employer to confirm these claims. This new course is not to catching you, it’s only more helpful to correct your claims. Still, you have any problem to understand about deduction and you really need help so don’t worry we are here for you. We are Accountants in Melbourne. PND Accountants and Advisors is very well known firm in the area of Melbourne like hoppers crossing, Williams Landing, Kew, Point Cook, Geelong and Much more. Contact us for any kind of your accounting problems we give you the best solutions to your every accounting problem.
