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Tips For Managing Work-Related Expenses

Two people working out expenses together

When tax time comes around each year, keeping track of all of your expenses is essential to make sure we get the most out of our return. The goal of this article is to provide you with a guide to claiming your work-related expenses – what to claim, how to manage them as well as some tips to help you get the most out of your expenses.

What Are Work-Related Expenses?

A work-related expense refers to any expense incurred while performing your duties at work or, for work. Although there are criteria in place that must be satisfied, including:

What Are Work-Related Expenses?

The types of work-related expenses you claim are broken up into categories – travel, clothing and laundry, and work from home expenses. If your work-related deductions fall within these categories, you can claim them on your tax return. But what can you claim exactly?

Travel-related Expenses

Travel expenses can include:

Clothing and Laundry-related Expenses

Clothing and laundry expenses can include:

You can also claim a deduction for the costs you incur to clean (launder) or dry-clean work clothing, though you will need to provide evidence of the following that:

According to the ATO, you cannot claim a deduction if your employer:

Work From Home Expenses

Work from home expenses can include:

Other Work-Related Expenses

It is possible to claim a deduction on self-education and study expenses if they are related to your current employment. To be eligible for this kind of claim, the education must lead to a formal qualification and meet these criteria:

You can’t claim a deduction for self-education and study expenses for a course that:

Tips To Manage Work-Related Expenses

The most significant things you can start doing today is recording and keeping track of your expenses. There are many simple ways to do this including making a list, but if you want the most accurate recording of your expenses, there is expense tracking software available:

Xero

The accounting software Xero has a great feature that is perfect for keeping track of your deductions. You’ll have the ability to record expenses with the Expense Tracker and an enormous range of exclusive features that can help you to stay on top of your finances.

Please note that while this app has a free trial, it is not free to use.

myDeductions

The myDeductions app from the ATO is free to use and makes it easier to keep your expenses and income in the one place. The tool makes it easier and more convenient to keep records of your expenses and income in one place, including photos of your receipts and invoices.

How Much Work-Related Expenses Can I Claim?

We’ve saved the best for last, and this is important if you want to get the most out of your tax return this year – always keep a record of your expenses!

Without receipts or any evidence of your work-related expenses, you can only claim up to a maximum of $300

For more informative articles like this one, check out or Tips to Help You Lodge Your Tax Return.

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.