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NSW Australian Law - Tax Deductions on Personal Services

Discussion in 'Other/General Law Forum' started by Steve500, 16 November 2015.

  1. Steve500

    Steve500 Well-Known Member

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    Can you, as an individual, claim tax deductions on home service under Australian Law, e.g. house cleaners, drivers, personal trainers, chefs, nannies? Or can you not claim these as tax deductions?

    Say you work from home, can your business/company claim a tax deduction on home services, e.g. nanny, as you have small children and need a nanny at home while you "work from home?

    Curious how taxation works for "Services industry", and what you can claim as a tax deduction.

    Say your car breaks down, and you need it fixed as you run your small-business with the "car" playing a big part, can you claim a tax deduction on car insurance / mechanic costs?
     
  2. Tim W

    Tim W Lawyer

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    I think you'll find that the ATO considers these to be personal expenses, and not allowable deductions.
    I think you'll find that the ATO considers these to be personal expenses, and not allowable deductions.
    ATO has published extensive material about deductions for home based work,
    and for taxpayers operating personal services businesses. Search their website.
    Bear in mind that personal services businesses can be set up differently - for example, they can be either sole traders or corporations - and therefore how, say, a nanny is paid for might be different.
    For example, it could be drawings for a sole trader, or a fringe benefit for a PAYG employee.
    Bear in mind also that lots of people who work from home are in fact PAYG employees.
    Bear in mind also that lots of people who call themselves "contractors" or "freelancers"
    are better described as (so to speak) "temps".
    ATO has published extensive material on motor vehicle expenses. Search their website.
     

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