It’s tax time, and you know what that means—time for the yearly scramble to find those elusive receipts stashed in the glovebox or tucked away in old drawers.

We know you want to maximise your deductions, and we’re here to help you claim everything they’re entitled to. But first, let’s clear up some common misconceptions about record-keeping, deductions, and work-related expenses.

After all, when it comes to deductions, the rule is simple: no record, no deduction.

1. The Myth of Bank Statements as Proof

One common misconception is that a bank or credit card statement is enough to support a work-related expense claim. In most cases, it’s not. While a statement might show that money was spent, it usually doesn’t provide enough detail. To substantiate a claim, you need written evidence—typically a receipt—that clearly shows:

• The supplier of the goods or services
• The cost of the purchase
• The date of purchase
• The date the receipt or document was produced
• The nature of the goods or services being claimed

Without these details, the ATO may not accept the deduction, so keeping those receipts handy is important.

2. Claiming More Than $300 in Work-Related Expenses

You might be under the impression that you can claim small amounts without much fuss, but it’s crucial to know the rules. If their total claim for work-related expenses exceeds $300, they must have written evidence to support every single claim. This means keeping receipts, invoices, or other documentation that backs up their deduction.

However, if the total claim is $300 or less, they can claim a deduction without needing written evidence. But even in this case, you must be able to show:

• That you spent the money on work-related expenses
• How you calculated the amount being claimed

3. No Automatic Deductions

However, you might believe that certain deductions, like laundry expenses, don’t require receipts. While it’s true that some types of deductions don’t need receipts, some kind of record is usually still necessary. For any work-related expense claim, your clients need to meet three golden rules and have a record that shows:

• The split between private and work-related use (for example, a diary or logbook)
• How the amount claimed as a deduction was calculated

This is crucial to ensure your claims are accurate and compliant.

As tax time approaches, tax advisers are also at hand to help you navigate the complexities of deductions and record-keeping. By providing them with the right information, you can ensure they claim everything you’re entitled to—without the stress of unexpected tax bills.

Remember, accurate record-keeping is the key to a smooth and successful tax season, so let’s work together to help your clients get it right.