Tax time can be challenging, especially for miners with various work-related expenses. Understanding what you can and cannot claim is essential for maximising your tax refund. This guide outlines the key deductions available to miners, ensuring you don’t miss out on any potential tax benefits.
General Principles for Claiming Deductions
To claim a deduction for work-related expenses:
Self-Incurred Costs: You must have spent the money yourself and not been reimbursed.
Direct Relationship: The expense must directly relate to earning your income.
Record Keeping: You must keep records to prove your expenses.
Only the work-related portion of an expense can be claimed. Personal expenses or portions of expenses unrelated to your job cannot be deducted.
Car Expenses
Non-Deductible:
Regular commutes between home and work, even if you work non-standard hours, are not deductible.
Deductible:
Trips between separate jobs in one day.
Travel between different workplaces for the same employer on the same day.
In limited circumstances, trips between home and work if you carry bulky tools or equipment necessary for your job.
Methods for Claiming:
Logbook Method: Keep a logbook to calculate the percentage of work-related use, along with written evidence of expenses.
Cents per Kilometre Method: Show how you calculated your work-related kilometres and ensure they were work-related.
If you claim using one of these methods, further deductions for the same car, such as servicing and insurance, cannot be claimed separately.
Travel Expenses
Deductible:
Travel expenses incurred while travelling away from home overnight in the course of performing your employment duties. This includes meals, accommodation, fares, and incidental expenses.
Fly-in fly-out (FIFO) or drive-in drive-out (DIDO) travel expenses under certain conditions.
Non-Deductible:
Travel expenses paid for or reimbursed by your employer.
Receiving a travel allowance from your employer does not automatically entitle you to a deduction. You must still show that you were away overnight, spent the money, and the travel directly relates to earning your employment income.
Clothing and Laundry Expenses
Non-Deductible:
Conventional clothing (e.g., jeans, drill shirts, and plain pants), even if required by your employer.
Deductible:
Protective clothing with features or functions that protect you from specific risks of injury or illness at work. For example, steel-capped boots or fire-resistant clothing.
Compulsory uniforms explicitly required by a workplace agreement or policy that is strictly enforced and distinctive to your organisation.
Non-compulsory uniforms registered with AusIndustry.
Expenses must not be reimbursed by your employer to claim a deduction.
Meal and Snack Expenses
Non-Deductible:
The cost of food, drink, or snacks consumed during normal working hours, even if you receive an allowance.
Deductible:
The cost of meals bought and eaten when working overtime if you receive an overtime meal allowance under an industrial law, award, or agreement, and it’s included in your assessable income.
Other Expenses
Deductible:
Work-related portion of expenses such as sunscreen, sunhats, and sunglasses where your duties require prolonged periods working outdoors.
Phone and internet costs, with records showing your work-related use.
Renewing a special licence, condition on your licence, or certificate necessary for your job duties. For example, renewing a forklift licence if required for your job.
Non-Deductible:
Private expenses such as music subscriptions, childcare, or fines.
Expenses must not be reimbursed by your employer to claim a deduction.
Keeping Track of Your Deductions
Using a tool like TaxFox can simplify keeping track of your expenses and receipts throughout the year. This not only ensures you claim every possible deduction but also keeps you prepared in case of an audit.
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By understanding and leveraging the specific deductions available to miners, you can significantly enhance your tax refund. Ensure you keep accurate records and only claim the work-related portion of your expenses. Always Consult the ATO website for compliance
For more detailed information, visit ATO Miner Deductions.
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For a more streamlined tax experience, consider using TaxFox, an innovative tax app designed to help Australian taxpayers maximise their refunds effortlessly. With features like a digital logbook, receipt storage, and real-time tax refund tracking, TaxFox ensures you never miss a deduction. Download the app today on Android or iOS and take control of your tax returns.
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