Australians can submit claims on their tax return even without a receipt if all items for that financial year cost less than $300.
The Oct. 31 deadline to file returns is just three weeks away, leaving many scrambling to find those records to support a claim for work-related items.
But the Australian Taxation Office (ATO) has a rule that allows claims without receipts if everything work-related costs less than $300, from notebooks to highlighters, calculators and work-related clothing.
“If your total claim for work-related expenses is $300 or less, you can claim a deduction without written evidence,” it said.
“You need to be able to show how you spent the money and how you calculate the amount of your claim.”
But the $300 rule cannot be used for car expenses, meal allowances, and travel allowance claims.
H&R Block tax communications director Mark Chapman said the $300 ‘shortcut’ rule meant receipts and invoices would not be required as evidence should the tax office make an investigation.
“It’s designed as a concession to help people who have minor claims for work-related expenses,” he told Daily Mail Australia.
Australians can make claims on their tax return even without a receipt if all items in that financial year cost less than $300 (file image)
‘But remember, the $300 limit applies to all your work-related expenses. It’s not per article.’
If all work-related expenses exceeded $300, then receipts and invoices would be required for 2023-24.
Individual items costing up to $300 can be claimed in a financial year, including items such as an office chair and a desk for those working from home.
“Yes, if it is a capital asset and its cost is less than $300, you can take an immediate deduction if the expense is related to your employment,” Mr. Chapman said.
‘You can only claim if the expense is work-related.
“If this is private or internal expenditure, the ATO can be expected to reject the deduction and possibly charge a penalty.”
If the item costs more than $300, it must be depreciated over multiple tax returns.
But small businesses that buy an item worth up to $20,000 can claim the full amount in one financial year, with instant asset write-off extended until June 2025.
That means this special deal will cover the 2023-24 financial year, which will be the subject of tax returns due this month.
The October 31 deadline to file returns is just three weeks away, leaving many professionals scrambling to find those files for work-related items (pictured, Sydney Officeworks).
The tax office, however, is cracking down on fraudulent claims, suggesting there is an $8.7 billion gap between what Australians pay and what they collect.
“The ATO will ask for justification if they suspect the expense is not genuine,” Chapman said.
“This could be in isolation or as part of a full review or audit of your tax returns.”
Those working from home must keep a diary or copies of their list to claim the flat rate of 67 cents per hour, which takes into account mobile phone and internet costs.
The form of record could be a diary, time sheets, or copies of the personnel roster.
But those who want to claim heating and cooling expenses must submit invoices and calculate the proportion of a home used for work, relative to the energy cost.
People have until October 31 to file their tax return or register with a tax agent to get an extension until May 15.
