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How to Claim Deductions

How to claim certain deductions that the Tax Office attributes to private and work/business related use

We are sure you have seen the media reports of the Tax Commissioner, Mr Chris Jordan, hitting out at us tax agents accusing us of helping you to defraud the government by claiming more than you should.
The ATO is intent on turning us into quasi-tax auditors. With this in mind, we remind you of your obligations in relation to just a few deductions;

Until now, the Australian Taxation Office only gets summary information on your tax return. They get a little bit more detail on your rental property. For the 2019 year, they will get granular detail of all of your deductions claimed at D1-D15. This includes motor vehicle claims, travel, uniforms, self-education, and general work-related deductions.

Added to this, the Australian Taxation Office focus on apportioning your claims properly where this is (or should be) private use, we will, by necessity, be spending considerable focus on these claims with all clients.

We will not be including any claims for deductions without a usage diary. Please see our separate details on usage diaries and enclosed copies of the KDC Accounting Usage Diaries. Please print as many as needed.
The Tax Office requires 3 criteria in order to be allowed to claim a deduction. These are:

  • You must have spent the money and be able to prove that you spent the money
    The item must be
    • For employees: necessarily incurred
    • For small business owners: related to the activity of earning your income
  • You must substantiate the expense in accordance with the Legislation.
Fact Sheet – Records you need to keep

Description

Useful Forms

Including Usage Diaries

KDC Accounting is pleased to be partnering with Receipt Bank and have outlined below some exciting changes to our bookkeeping and tax compliance services.

Receipt Bank allows you to submit your bookkeeping documents to KDC Accounting on the go by taking photos on a mobile app, through emailing or by scanning to drag and drop. Watch this one minute explainer video

to get an overview.

Please read the following information regarding Receipt Bank and we will be in touch with the next steps to go ahead with the platform. Alternatively, let us know you are ready to proceed now and a KDC team member will be in touch to discuss the next steps of your Receipt Bank Implementation

Why should you use Receipt Bank as part of your record keeping process?
– No more chasing you for documents
– No more lost paperwork
– Expense management: no more missing out on unclaimed expenses
– Compliance: Audit proofing your business in the case of an ATO audit
– Digitally stored documents in an easily searchable online archive
– Timely data flow enabling real time insights into your business from KDC Accounting
– No longer having to photocopy or even keep your thermal receipts

What are the security implications?
Receipt Bank supports two-factor-authentication (2FA). 2FA is entirely opt-in, available to every user. All you will need is a security code from an auth-app such as Google Authenticator, Authy, or Microsoft Authenticator. This added layer of authentication means that your data is even more secure.

For an extensive overview of how Receipt Bank store data, please refer to the “Data” and “Security and Data” section of the Receipt Bank Terms and Conditions.

Additional Security Information is available below:

– Receipt Bank use 256-bit SSL security code (same as most banks around the world). However, as usual, the stronger your password, the better.

– At Receipt Bank they use Amazon Web Services (AWS) as our cloud computing platform. We have two instances: one for live servers, based in the UK and another one, based on a different geographical location (Frankfurt) to ensure the availability of data during an incident. Both are hosted in AWS Europe.

– The data is encrypted in transmission today.

– Receipt Bank will store items for a minimum of 10 years. However, you may wish to download them as PDF or CSV from Receipt Bank if you want to have an additional copy.

-Receipt Bank are ISO 9001 and ISO 27001 certified as part of their commitment to data security and process excellence.

We look forward to working with you in Receipt Bank where you are us will benefit from this new technology.

In the event that an account is not paid within the terms of our Fee Policy, the following shall apply:

  • KDC Accounting shall, without prejudice to any other remedies available, be entitled to charge interest on the amount outstanding calculated from the date payment is due until the date payment is made at the interest rate prescribed by reference to the prescribed rates in Schedule 2, Interest Rates, of the Court Procedures Rules 2006 (volume 3) plus 5%.
  • In the event of failure to meet payment within 7 days KDC Accounting will be at liberty to instruct a Collection Agency and / or solicitors to recover the monies outstanding. You, the client, will be liable for costs, charges, commissions, and expenses reasonably and properly payable to us to such Collection Agency and / or solicitors relating to the recovery of outstanding debts and associated costs.
  • Any monies recoverable by us from you, the client, pursuant to clauses (a) and (b) shall be added to the amount otherwise due and shall be recoverable as a liquidated debt.