I will use ADF/Military contexts here. Please read between the lines and adjust for yourself as needed.

Claiming deductions and offsets

can be very confusing for new arrivals and is where most in their 1^st year get it wrong. You will hear the phrase “Just claim it on tax” about purchases, which will give you the impression that if you spend $280 on a ‘SWAG’ (typical work expense where I am) then after your tax claim is complete you will see the whole $280 come back.  WRONG!

As per the cut and pasted internet search statement above, you will only get the tax portion back relative to your tax rate by reducing your overall income.  I went nuts in my first year, boots, SWAG, boots, new GPS, boots, plug in fridge, boots, new warm/wet weather gear, boots, field stores and some boots, new everything. I was thinking I might as well buy it in with put aside holiday money as I would get it all back! Right?

My tax return slapped me for not researching correctly. To the tune of thousands. The trip to Fiji I promised the missus once the holiday pot was replenished by tax refund money never happened!

My tip, create a document on arrival where you can track your purchases as you make them, purchases under $300 don’t require the need to keep receipts. Over $300 ask for one or keep your work order emails. If you’re paying through Gpay or banking app there will often be on the statement for example:

• 27 Jan –     Rebel Sport   –     $58.99
• If this correlates to a purchase you place on your tracker, in an audit you can provide a bank statement as evidence or get more detailed information through your Rebel Sport membership account
• Apps and store memberships often keep a digital record on your account

There is no perfect way to keep details, I’m tech poor and do what works for me. If my tax agent doesn’t understand something she will call to discuss it before she adds it to the claim. Or she will advise I don’t claim that item. I also use my tracker to remind me of things to claim that aren’t widely known or I find during my research into annual changes.

Below is a redacted portion of mine from previous years.