FREQUENTLY ASKED QUESTIONS
As an individual tax payer entertainment expenses are, unfortunately, generally not deductible. This includes lunches and dinners where business matters may be discussed.
If you are operating a business then claiming entertainment expenses becomes more complex and may incur fringe benefit tax. Discuss the expenses you wish to claim with your accountant.
Generally speaking, the very minimum records you are required to keep for your employees (and contractors) are as follows;
• copies of tax file number declarations or withholding declarations
• copies of any contracts you have with contractors
• records of wages, allowances and other payments made to workers
• copies of payments and reports provided to the ATO
• copies of payment summaries
• super records, including payments you made and records that show you have met your choice of super fund obligations
• records of fringe benefits provided, tax calculations, worksheets, declarations, elections and supporting details.
You can claim a number of expenses against your rental property including (but not limited to) advertising, bank charges, rates, land tax, depreciation, repairs, interest expenses, travel, property management fees and capital works. Ensure you keep good records relating to your investment property as this will greatly assist you come tax time!
Sources: ATO Website (www.ato.gov.au), Fairwork Australia (www.fairwork.gov.au)