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Tax time isnโt just a yearly chore, itโs a chance to claw back some value on the investments youโve made in your tools, safety gear, vehicle, and workshop. For mechanics and workshop owners, understanding what you can claim can lead to a stronger return and a better-equipped business.
There is also a lot of incorrect tax information circulating online, so it is important to check anything that sounds too good to be true on ato.gov.au or with a registered tax professional.
Thatโs why weโve worked with the ATO to break down five key deduction areas that could make a real difference this financial year, and how Supercheap Auto Trade is ready to support you every step of the way.
To claim a deduction for a work-related expense you must meet the 3 Golden Rules:
You can claim a deduction if:
You canโt claim a deduction if:
You must have spent the money and you weren't reimbursed.
The expense must directly relate to earning your income.
You must have a record to prove it (usually a receipt).
You don't keep records of your work-related expenses
Someone else (such as an employer) pays for the expense or reimburses you for it.
The expense was for both work and private purposes, you only claim a deduction for the work-related portion of the expenses.
Whether itโs a new torque wrench, diagnostic scanner or a full set of spanners, if youโve bought it to earn your income, it could be claimable. Supercheap Auto Trade gives you access to a huge range of trusted brands at competitive prices, with exclusive Trade pricing that help your budget go further.
Now keep in mind, as an employee.
If an item costs $300 or less โ you can claim a deduction for the full amount of the work-related use of the item, in the year you buy it.
If it costs more than $300 โ youโll need to claim a portion over the life of the item (known as a decline in value). .
This also includes repairs and insurance for eligible tools used for work.
Remember, if you use the item for private purposes as well, you can only claim the work-related portion of the cost, decline in value, repairs and insurance.
If youโre wearing gear thatโs designed to protect you from specific risks of injury or illness at work, think safety boots, hi-vis clothing, heavy-duty gloves and eyewear, you may be eligible to claim for the time you use it on the job. Supercheap Auto Trade stocks a wide selection of PPE built for the demands of the trade.
Most trips between home and work are private and canโt be claimed. However, trips between job sites and callouts to breakdowns are deductible. In limited circumstances, trips between home and work may also be deductible where you need to transport bulky tools which are essential to perform your duties, are awkward to transport due to their size and weight and canโt be stored at work because thereโs no secure storage provided. Keeping a logbook, odometer records or records of the work-related trips you make is really important.
Supercheap Auto Trade can help ensure your work vehicle is kitted out with oils, parts and consumables to keep it moving, but remember, if you claim your car expenses using the cents per kilometre method, you canโt claim a separate deduction for these expenses. The cents per kilometre rate covers all of your car costs. If you use the logbook method, make sure you keep receipts for all of these expenses and a logbook that reflects your current work trips.
Whatever you claim, youโll need to back it up. Every Supercheap Auto Trade purchase comes with a clear tax invoice, and your full account history is available onlineโmaking EOFY record-keeping far easier when youโre working through deductions or meeting with your accountant.
When it comes to EOFY, let Supercheap Auto Trade help you with exclusive trade pricing on your business purchases.
Disclaimer: This article provides general information only and should not be considered financial advice. Always consult with a qualified accountant or tax professional to ensure your specific circumstances are taken into account. For more tax time tips and guidance, visit the Australian Taxation Office website at ato.gov.au.
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