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Travel Expenses – carrying bulky tools

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To ensure individual taxpayers are claiming deductions eligible under the tax law, the Australian Tax Office (ATO) places certain emphasis on particular areas each year. Work related travel expense for transporting bulky tools or equipment is one of the frequent topics under the ATO’s spotlight.
Generally, expenses incurred by a taxpayer for travelling between home and the workplace are not deductible as this is considered to be a private purpose. However, there are some exceptions. If you transport bulky tools and equipment required for work, the related motor vehicle and travel expenses might be deductible, provided that certain requirements are met:
It is essential to carry the tools and equipment for work as there is no other practical method to access them in the workplace. This would apply to individuals whose work is typically carried out off-site.
The equipment transported is bulky in the sense of being cumbersome, and
There is no secure place at work for the taxpayer to store the bulky equipment.
Generally, tools and equipment that weigh in excess of 15-20kg are considered as bulky and cumbersome to carry.
The deduction can only be claimed where the transportation of tools is expected by the employer, or it is a practical necessity for the tools to be readily available at each work site for the taxpayer.
Further, the security of equipment in the workplace is also one of the determinative factors. It must be established that the employer or off-site workplace has no secure facilities provided to store the tools and equipment outside of working hours. The Taxpayer cannot just transport the tools as a matter of convenience or personal choice. Otherwise, the travel expense would be considered to be for private purposes and no deduction is allowable.
In certain circumstances the ATO will contact the employer to verify the taxpayer’s claims. Therefore, to claim work related travel expenses correctly for transporting bulky tools, it is recommended that you have considered all the above factors.
If you need help in understanding the above, please contact us on (08) 7325 8427, or admin@advantagebusinessgroup.com.au.

2017 Federal Budget – Newsletter

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On Tuesday, 10th May 2017, Federal Treasurer Scott Morrison handed down his second

Federal Budget and the Australian economy is expected to rebound from the slowdown caused

by Cyclone Debbie that hit the coast hard at the end of March this year. The economy is

expected to expand at a rate of 2.75 percent next financial year and 3 percent the following

year. Treasury now expect a budget deficit of $29.4 billion in 2017/18 but project a surplus

budget of $7.4 billion in 2020/21.

Click Here to view Federal Budget 2017-2018

TAX CALCULATION

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Tax Calculation

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FRS 102 bears more than a passing resemblance to the International Financial Reporting Standard for SMEs, as issued by the International Accounting Standards Board in 2009, although it has been amended to be more compliant with the Companies Act and EU directives, and incorporate some old UK GAAP options.

The new standard impacts a huge swathe of businesses, as it applies to the vast majority of large and medium-sized UK businesses and organisations, including charities, retirement benefit plans and financial institutions. Effective of January this year, ‘small entities’ was broadened to encompass small companies and LLPs not excluded from the small companies / LLPs regime. In addition, FRS 102 applies to all entities that are neither required nor elect to apply EU-adopted IFRSs.

As regulatory changes go, this has been a big one, hence early adoption was encouraged. Bigger still is the official documentation that practitioners have had to acquaint themselves with, at around 350 pages – but on the plus side, it is only a tenth the length of the old GAAP documentation!