Tax Deductions for Overseas Purchases?

Save Medicare on 02/11/2017 - 11:27

Quick question about tax deductions

Going to start working soon for the first time and wondering if I can tax deduct items from overseas sellers like on aliexpress/banggood etc

For example if I buy a mobile phone outright I would be looking to claim 50% of it as for work related purposes resulting in a 16.25% discount in terms of tax savings. ($37k-$87k bracket)

Would it be able to do this if I buy it from an overseas seller without an ABN? Otherwise, might I be able to still secure a better discount by just buying it from overseas without tax deducting?

Also would Ozbargain suggest it better to

  • a) buy phone on contract and deduct monthly payments

OR

  • b) buy phone outright and deduct depreciating value over several years + phone plan and deduct monthly payments

Also I realise this isn't the best place for financial advice. Who can I pay to teach me life skills?

Financial

Comments

  • 87percent on 02/11/2017 - 12:30
    +2

    you have to be careful with "mobile phone work related purposes"

  • loke on 02/11/2017 - 12:39
    +2

    Yes it is fine if imported, you spent it, keep a receipt or record - also for % claim 1 mo/4 wk representative period via diary or 1 monthly bill (ato wants calls and data sessions marked) - make sure your employer / you can demonstrate you need it for work, e.g. you make client phone calls / work related calls

    https://www.ato.gov.au/Individuals/Income-and-deductions/Ded…

    Between a) and b) whichever choice will give you more value or a greater saving

    You can check online for number of years, 3 years for mobile phone depreciation ; see pdf in http://law.ato.gov.au/atolaw/view.htm?docid="TXR%2FTR20172%2…

  • JimmyF on 02/11/2017 - 13:10

    Yes you can claim them (but is it a legal claim, thats a different question). If you had a ABN and tracking GST, you can't claim GST as they don't have any. So you would enter them as GST free expenses.

  • Donaldhump on 02/11/2017 - 14:57

    you can only claim expenses outright on things < $300

Login or Join to leave a comment
Login Join