This form is to confirm that the client understands the Australian Taxation Office (ATO) guidelines regarding claiming work-related expenses up to $300 without written evidence, and accepts full responsibility for substantiating such claims.
1. ATO Guidelines & Requirements
If your total claim for work-related expenses is $300 or less, you do not need written evidence (such as receipts) to claim a tax deduction. However, while you are exempt from keeping receipts, you must still meet the following strict criteria:
- Actual Expense: You must have actually spent the money yourself.
- No Reimbursement: The expense must not have been reimbursed by your employer.
- Direct Connection: The expense must be directly related to earning your income.
- Record Keeping: You must be able to show how you calculated your claim and prove the expense was incurred (e.g., bank statements, calendar entries, diaries, or spreadsheets).
2. Key Limitations
- Total Summary Threshold: The $300 limit is not per item. It applies to the total cumulative sum of all work-related expenses claimed.
- Excluded Items: Certain expenses, such as car expenses and business travel expenses, are excluded from this $300 threshold and are subject to separate, stricter substantiation rules regardless of the amount.
3. Audits and Client Liability
This threshold is not an automatic ‘standard deduction’ that can be claimed without having spent the money. Claiming expenses up to the limit without actual expenditure constitutes a false claim and may trigger an ATO Audit.
4. Five-Year Record Retention Rule
- In accordance with ATO guidelines, you must retain all supporting records and calculations (e.g., bank statements, diaries) for a minimum of 5 years from the date you lodge your tax return.
* Declaration and Consent
- I declare that I have read, understood, and agree to the ATO guidelines and conditions outlined above.
- I confirm that all claims submitted are based on actual expenses incurred, and I accept full responsibility for providing evidence directly to the ATO should my tax return be selected for an audit or review.
- I acknowledge that any legal or financial penalties (including back taxes, fines, and interest) resulting from insufficient evidence or false claims are solely my responsibility, and I agree to hold PNK Partners Pty Ltd harmless from any liability.
