Importance of Good Record Keeping When Claiming Work-Related Expenses

The ATO is advising taxpayers that having records to substantiate claims is essential to prove deductions can be claimed, having regard to the following in particular:

• A bank or credit card statement on its own will generally not be enough evidence to support a work-related expense claim.  Taxpayers instead need detailed written evidence such as a receipt.         

• If a taxpayer's total claim for deductible work expenses is $300 or less, they can claim a deduction without written evidence, but they must still be able to show that they spent the money and how they calculated the amount being claimed.

• While some deduction types do not require receipts (e.g., laundry expenses), some kind of record may still be necessary.  Taxpayers may also need a record that shows their private and work-related use (e.g., a diary), and how the amount claimed as a deduction was calculated.

If you have any questions in relation to the matters discussed in this blog, please get in touch with us.