I was chatting with a friend who said their husband claimed his watch as a tax deduction He works in mining and needs to know what time it is for meetings, or when a blast is on etc, he claims a proportion of it She mentioned some other items which ive forgotten I think I was thrown on the watch issue, id never thought toclaim such, or even if it was possible
I think you a little harsh ....... ......... the watch needs to be pressure rated to 300m to resist blasts with a corrosive resistant material (gold) and perhaps with a quick release band of soft anti corrosive metal and also accurate to 1/1000th second so as not to compromise the blasting timetable, shift start time or the scheduled morning and afternoon smoko breaks and knock off time .........oh and Rolex for quality assurance and reliability. why would you think this would not be deductible?
I used to work with a sparky up north that would bring a little toolbox home every time , with some tools in it , made of plastic and about the size of a small tackle box , it was so he could claim a deduction on driving to and from the airport every week. FIFO miners love their tax deductions.
If the ATO were to check and confirm the necessity of bringing "heavy tools" in this manner he may encounter a problem. The employer may say - We provide all tools for workplace safety purposes and the employee has no requirements (and may even be prohibited from) bringing own tools to site. The ATO often confirm these things directly.
If it is a smart watch then it would definitely have 'special characteristics that you use for work'.
Not really. The watch is one element. The key issue is what work use requirement supports the needs for a watch and its functions. Mines dont blast hoping all employees have a watch. They have a process involving sirens etc. A watch for timing meetings etc may lack the special requirements. The depreciation of the watch and adjustment for private use would mean any deduction is minor to be honest. This is an example of a watch that may be more likely to have a work related need in a mine. But it seems a workplace device not one for a sole miner to own. : https://www.miningmagazine.com/innovation/news/1262606/partners-launch-minesafe-smartwatch
I worked with a guy who claimed some of his fishing gear as a trainer for crane crews, his point of view was that he needed the rod to explain boom movements in the classroom Lifting and Rigging: What are Cranes and what types of Cranes exist A creative professional is someone doing their tax returns
A watch is private in nature. if you were a deep sea diver and you needed to buy a watch rated for extreme depth then you might get away with it. Otherwise no. There are better tax strategies around than claiming a watch. Focus on the big dollar stuff.
Being creative is NOT the key. He was innovative and the teaching aids if a fishing rod assists him to fulfil his job. He had expenses necessarily incurred. I would argue that it could also be 100% non-deductible if he failed to satisfy the substantiation rules.
Its possible the watch could even be prohibited on site. I once had a taxpayer who worked at a oil refinery. They argued the needed to use their mobile and claim a % of use and calls. The ATO checked with the employer who advised mobile phones are prohibited on the worksite for safety reasons. The deduction was denied
I would've thought similar, but with Australia's income tax system based on self-assessment you will always get some strange ones Agreed I read somewhere it's a national pastime for Aussies trying to turn private expenditure into tax deductible expenses <starts searching web> It was probably this or something similar https://www.perthnow.com.au/busines...lian-taxation-offices-hit-list-ng-b881240154z Then again, they are probably just trying to emulate their employers How 710 companies got away with not paying a single cent in tax
