Question:
Save Tax: Travelling Expenses
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
If you have to travel for business or work related purposes you can claim air fares, bus, train, tram and taxi fares, car hire, meals, accommodation and incidental expenses. Whilst travel between home and work cannot generally be claimed, you can claim the cost of travelling between two jobs or between home and work where you have to transport bulky tools or equipment.
If you operate your business from home you can claim travel as part of the work. Tradesmen can claim the costs of travelling to clients whilst itinerant workers can claim deductions if they have to travel to a number of jobs each day. Shearers, who use their home as a base of operations and carry out work duties at home, can claim travelling costs to the various sheds. Travel costs can be claimed where clients are to be visited or goods collected on the way to work.
If you use your car to attend work related seminars, including on-the-job training or travelling from one branch to another, you can claim the costs of travel. If you have a rental property you can claim the costs of travelling to inspect or maintain the property if that is the predominant reason for the trip.
