Busting Myths Around Record Keeping for Tax Deductions (Sep 24 Tax Update)

Relevant For:

Australian small-to-medium business owners, self-employed individuals, and taxpayers looking to maximise deductions.

 Key Points:

• Ensure all work-related expenses claimed are backed by proper documentation.
• Deductions require proof that the expense was incurred, not reimbursed, and directly related to earning income.
• Bank statements alone aren't sufficient; detailed evidence of the expense is needed.
• For claims over $300, written evidence is required for each expense; for claims under $300, demonstrate how expenses were calculated.
• Effective record-keeping helps maximise deductions and avoid compliance issues.

Full Article:

In the world of tax deductions, misinformation can lead to costly mistakes. The Australian Taxation Office (ATO) has identified several common myths surrounding record keeping, deductions, and work-related expenses. Let’s explore these myths and clarify what’s required to stay compliant and maximise your deductions.