Finance Assignment Sample

Provisions made by the Australian Tax Office, certain expenses can be deducted if they are related to work?

– The expense is not reimburse.

– It is direct expense towards earning the income.

– There is a record to substantiate the expense.

So, based on this information, the payments made by Leila which are deductible for tax purposes can be given as follows:

– Doctor Union Fee: This is a direct expense towards earning her income since membership towards doctor union is a part of her profession.




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– Laundry of compulsory uniform: This is a direct expense towards earning her income since she is required to wear the uniform.

– Stethoscope: It is also a direct expense towards her income as being a doctor she is require to use a stethoscope.

– Text Books: Textbooks form a part of self-education expenses related to earning income, however can be deduct for taxation purposes.

– Scissors to cut surgical gauze: Cutting gauze is an expense related to directly to her profession hence the scissor use for this is a deductible expense  (Australian Taxation Office, 2018).

B. The expenses which cannot be deducted by Leila for her taxation purposes can be given as follows:

– Jacket when working night shifts: This is not an expense related to her income but more of a personal preference for personal comfort.

– Taxi fare when calling at short notice: This too is not an expense related directly to her income as she does not necessarily have to call a taxi in short notice.

– Plain watch: Being a doctor is not mandatory to wear a watch and hence not a direct expense towards her income.

– Phone calls to check shifts: This is not a direct expense towards her income since the shifts are mostly predetermining.




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– Shoes: Shoes are personal expense and not related to the income  (Australian Taxation Office, 2018).

C. The substantial requirements that she will need to satisfy in order to claim the tax deductions includes maintaining proper bills from the seller of the goods / services for all the deductible expenses especially if the total deductions for work-related expenses are over $300 in total  (ATO, n.d.).

References

ATO. (n.d.). Records you need to keep. Retrieved from https://www.ato.gov.au/: https://www.ato.gov.au/Individuals/Income-and-deductions/Records-you-need-to-keep/

Australian Taxation Office. (2018). Deductions you can claim. Retrieved from https://www.ato.gov.au/: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/

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