Tax myths busted, part 2
Myth: I can claim my work clothes because my boss told me to wear a certain colour. Fact: Unless your clothing is a uniform that is unique and distinct to your employer, or protective or occupation-specific clothing that you were required to wear to earn your income, you won’t be able to claim it. Plain clothes, like black pants, are not deductible even if your boss told you to wear them.
Myth: I can claim my whole Netflix or Foxtel subscription because I need to keep up to date for work.
Fact: Unless you only use your subscriptions for work purposes, you will have to apportion the cost between business and private usage, and only claim the work-related portion of your expenses. You will also need to be able to show a strong connection between earning your income and the subscription.
Myth: I can claim home-towork travel because I need to get to work to earn my income.
Fact: for most of us, home to work travel is private since your boss doesn’t pay you until you get to work. There are limited circumstances where someone who has to transport bulky equipment can make a claim.
Myth: I’ve got a capped phone plan, so I can claim both personal and private phone calls.
Fact: Unless you only use your phone for work, you will have to apportion the cost between business and private usage and only claim the work-related portion of your expenses.
Myth: If I use an agent, they will take responsibility for my claims.
Fact: Even if you use a tax agent, you are ultimately responsible for ensuring the information in your return, including the deductions you claim, is correct.
For more tax information, see ato.gov.au.