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Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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Re: Claiming work related expenses without income

Newbie

Views 184

Replies 5

Hi,

My client is in a sales role, and to date he hasn't received any salary (this may change in the next few weeks with a couple of deals looking promising) or may flow into next year.

 

My question relates to expenses. Will the client still be able to claim travel (quite a bit he has logged into an app) mobile phone (and other work related expenses) even though he might potentially not have received any salary from his current employer?

 

Thanks

Anthony

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 2

Hello @anthony_cez,

 

If your client had deductible expenses directly related to earning an income, they can claim a deduction for these expenses. 

They are able to do this even if income was made from Job A and they incurred deductible expenses for Job B.

 

If their total deductions exceed their total assessable income during the finical year, they can claim a tax loss.  Tax losses must be claimed at the first opportunity. Your client can offset this loss against future income if they cannot be offset against the current year’s income. You can read more about how to claim a tax loss on our website.  

 

Certain deductions that would otherwise be allowable cannot be claimed as deductions where they would give rise to a tax loss. A list of these can be found on our website. 

5 REPLIES 5

Devotee

Replies 0

Expenses reduce taxable income so if zero income, there is no taxable income to claim expenses as a deduction

Newbie

Replies 0

I forgot to add the client worked in a previous job until Oct 20 where he earned income.

Then from Nov 20 he took up this sales role which I have described in the original text and hasn't earned income from it. So the question related to Nov 20 onwards. 

Most helpful response

ATO Community Support

Replies 2

Hello @anthony_cez,

 

If your client had deductible expenses directly related to earning an income, they can claim a deduction for these expenses. 

They are able to do this even if income was made from Job A and they incurred deductible expenses for Job B.

 

If their total deductions exceed their total assessable income during the finical year, they can claim a tax loss.  Tax losses must be claimed at the first opportunity. Your client can offset this loss against future income if they cannot be offset against the current year’s income. You can read more about how to claim a tax loss on our website.  

 

Certain deductions that would otherwise be allowable cannot be claimed as deductions where they would give rise to a tax loss. A list of these can be found on our website. 

Newbie

Replies 1

Hi Kara,

Thank you for your reply.

So it is perfectly fine to claim expenses from Job B against Job A, even though they are two different employers?

Thanks

Anthony

ATO Community Support

Replies 0

Hi @anthony_cez

 

Yep there should be no issue as per the reply from @KaraATO. Deductions are claimed against total income, not just specific income from a single employer.