Tax Secrets of the Rich, 2024-25 by Allan Mason

Author:Allan Mason [Mason, Allan]
Language: eng
Format: epub
Publisher: HarperCollinsPublishers
Published: 2024-06-15T00:00:00+00:00

You must also keep records that demonstrate your work-related use of the depreciating asset. This can be evidenced by records of a representative four-week period that shows personal and income-producing uses of the depreciating assets.

Self-education Expenses

Self-education expenses can be claimed, provided there is a sufficient connection to your income from your employment. It must be directly related to either maintaining or improving current occupational skills or is likely to increase income from your current employment income. If you obtain new qualifications in a different field through study, the expenses incurred are not tax deductible. Hence, if you are an engineer and study to be a chef, these expenses will not qualify. You need to check what you employment contract shows to ensure the study being undertaken fits within your current work duties. If you are not employed you cannot claim self-education expenses.

Typical self-education expenses include course fees, textbooks, stationery, student union fees, travel accommodation and meals (where you are required to be away from home for one or more nights, for example during exam periods) and the depreciation of assets, such as computers, tablets and printers.

Higher Education Loan Program (HELP) repayments are not deductible.

Motor Vehicle Deductions

If you use your motor vehicle for work-related travel, there are two choices for how you can claim. If the annual travel claim does not exceed 5000 kilometres, you can claim a deduction for your vehicle expenses on a cents-per-kilometre basis. This figure includes all your vehicle running expenses, including depreciation. The allowable rate for such claims changes annually. The rate for the 2023 tax year is 78 cents per kilometre, and for the 2024 tax year the rate is 85 cents per kilometre.

You do not need written evidence to show how many kilometres you have travelled, but you may be asked to show how you worked out your business kilometres. The ATO has flagged concerns that taxpayers are automatically claiming the 5000-kilometre limit regardless of the actual amount travelled. As mentioned earlier, you need to have incurred expenses in order to be able to claim a tax deduction.

If your business travel exceeds 5000 kilometres, you must use the logbook method to claim a deduction for your total car-running expenses based on the logbook business percentage over private use. Logbooks can be downloaded or purchased from all stationery stores.

To claim either of the above methods for your motor vehicle you need to show that you:

travel on work-related journeys during the day/night. Say, to clients, various customers’ premises, or to suppliers to pick up goods

use your vehicle to drive to work-related conferences or meetings that aren’t held at your usual place of work

travel between two different places of employment, say, job one to job two, and neither of these places of employment is at your home

drive from a normal workplace to a different workplace, then back to where you would usually work (not home)

drive from home to a workplace that isn’t your usual place of work and then drive to your usual workplace – or directly

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