Keeping records for your tax return is easier for employees and sole traders
-with the ATO app’s myDeductions tool.
Download the ATO app
Simply:
- download the ATO app to your smart device
- select the myDeductions icon
- step through and choose whether you'd like to use the tool as an individual (generally or as an employee), as a sole trader (business) or both.
You can record:
- expenses and deductions
- vehicle trips
- income (if you're a sole trader)
- photos of your invoices and receipts.
You can skip the hassle of lost and faded receipts, by recording transactions in the app as you go.
If you’re an employee, you can easily record work-related expenses for your car, travel, uniform, self-education, interest and dividends.
You can also record your receipts for gifts or donations, the cost of managing your tax affairs and other deductions.
If you’re a sole trader you can record your business income, repair and maintenance costs, motor vehicle and other expenses.
To record expenses or income, just add the amount, the date of the transaction and an accurate description.
If you’re in a hurry, snap a photo of your receipt or invoice and add the details later.
Backup your data regularly!
The data is stored on your device, so remember to back up as you go.
It's best to back up to a separate location, for example via email, or a cloud service, (ie) google drive, dropbox, one drive, etc, in case your device is lost or broken.
Upload or email the EOY deductions to us ready to complete 2021 Tax Return
At tax time you can upload the data to prefill your tax return so either you or Umbrella Accountants (your tax agent) can lodge. Or you can email the detailed data to Umbrella Accountants (your tax agent) so we can review and lodge.
Never miss a deduction again – download the free ATO app and start using myDeductions today!
A Quick Demonstration of myDeductions
https://www.facebook.com/atogovau/videos/2473138809457310/
The tool can be now be used by both individuals and sole traders. For more information visit, https://ato.gov.au/mydeductions
Motor Vehicle Travel Claims
Add your trips
This video shows how quickly you can manage your work-related car expenses with myDeductions.
You can watch
How to add a vehicle and manage your car trips using myDeductionsExternal Link
On this page:
- Adding, editing and deleting a vehicle
- Trip recording options
- Start logbook
- Common issues with adding trips
Adding, editing and deleting a vehicle
Before you can add a trip, you have to add a vehicle.
If no trips or expenses have been added against a vehicle, you can edit or delete that vehicle record under Settings, Vehicle settings. However, once a trip or expense has been recorded against a vehicle, that vehicle will always be shown in myDeductions (even in later years or if you delete trip records) and only certain fields can be edited.
Trip recording options
myDeductions provides three tracking options for you to record your car trips:
- Add point to point trip works out the shortest route between the start and end addresses you have entered. The tool works out the distance in kilometres and adds it to your record.
- Add GPS trip tracks your route to work out the distance you travel
- If you lose GPS signal during the trip, myDeductions will estimate the route and distance.
- GPS uses more battery power and data than the other options, so consider the length of your trip.
- Add odometer trip is the most accurate option. Use this option if you are using the logbook method to calculate your work-related car expenses.
See also:
- Individuals – Vehicle and travel expenses
- Business – Motor vehicle expenses
Are You Using The Shortcut Method To Claim Your Work From Home Deduction? $0.80 per hour
There’s a new normal in how Australians are approaching their work, with remote working now a more viable option for businesses and their employees, and it’s affecting the way that Australians now make claims for tax.
With many businesses affected by city-wide lockdowns during parts of the 2020-21 financial year, and some whose employees preferred to remain as work-from-home or remote workers after their respective lockdowns had ended, it’s more important than ever for work tax deductions to be correctly claimed and the process duly followed.
Where once the expenses and claims that needed to be made during tax return season could be more clearly defined in terms of business or pleasure, work-related expenses or personal expenditure, remote working and work-from-home employees need to keep careful records of what they can and cannot claim as "home office expenses".
To simplify the process of claiming these expenses, the ATO introduced a "shortcut method" applicable to the 2020-21 financial year as a result of the impact COVID-19 has had. This method is only applicable from 1 March 2020 through 30 June 2021. Depending on an individual’s circumstances, it may be a better alternative to employ when claiming home office expenses than the fixed-rate method or actual cost method.
Essentially, individuals can claim a fixed rate of $0.80 per hour worked from home, with the aforementioned shortcut method covering expenses such as phone, internet, depreciation on furniture & equipment. No other expenses can be claimed for working from home if this shortcut method is employed.
To use this method to their benefit when claiming home office deductions, individuals must keep a diligent record of the actual hours worked at home. This is a simpler process than claiming the actual expenses incurred. Claiming on the actual expenses incurred requires individuals to comply with the necessary and more complex record-keeping requirements outlined by the ATO.
It is important that Australians are aware of their entitlements and tax deductions when working from home/remotely. Speak with us to ensure that you are in compliance with your tax return obligations when claiming.
Need further help? please contact our office.
