Shopper unveils the meaning behind the cryptic '%’ sign shown in supermarket receipts - and it could earn you PLENTY of cash at tax time
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Ever wondered what the percentage sign next to items listed down in your supermarket receipts actually means? Fortunately, one Coles shopper does and they revealed how you can use it to your advantage after one woman brought up the question in a Facebook group.
The woman purchased two can openers, a bottle opener, and a carton of eggs for $20.30, and noticed that the three utensils were listed alongside a percentage symbol.
She decided to consult with the members of the Facebook group 'She's On The Money' in hopes to get to the bottom of what the signs could mean – and it turns out that the items are 'taxable', meaning Goods and Services Tax is charged for that item.
“Now my question is, can I claim these on tax, and if so, where do I claim them?” the shopper Shayla wrote.
“I know that you have to keep the receipt in order to claim this, just wondering where exactly when going through tax time. I hope this group can help.”
Image Credit: Daily Mail
So, what can you actually claim on tax? According to the ATO, you may only claim deductions for work-related expenses and it must meet their three golden rules:
1. You must have spent the money yourself (cannot be reimbursed by the company).
2. The expenses must directly relate to earning your income
3. You must present a record to prove it (usually in the form of a receipt).
If all the boxes are ticked, ATO advises that “you may claim these in your tax return in the 'Work-related expense' sections.”
“If the expense was for both work and private purposes, you only claim a deduction for work-related use. You can't claim a deduction if your employer pays for or reimburses you for any of these costs. If we think your employer may reimburse you for your expenses we may ask them.”
An accountant confirmed this in a response to Shayla’s post, stating: “Whether the shopper can claim it as a tax deduction depends on your job, and how the item helps you to earn assessable income,”
“It would need to be specific to your job, and not just a personal cost such as food during regular work hours, or driving/commuting to work – personal costs cannot be claimed.”
“It is best to have a chat with an accountant who can give you personalised advice, even if you intend to do tax yourself in the following years. This way, you know what you can claim for your role.”
However, another lady warned her saying: “I'm not an accountant but a business owner doing a business degree. Be careful about just relying on the 'you can deduct it if it's for work' mentality.
Image Credit: sbs.au
“That is NOT the case. The rules are strict for work deductions. Best to look them up on the ATO website which is quite helpful or speak to an accountant.”
Only certain work-related expenses can be claimed at the end of the financial year, including uniforms, travel expenses, and vehicles used for work which can all be claimed, but everyday attire bought for work, on the other hand, isn’t eligible for deduction.
Travel expenses include accommodation expenses, meal costs, and transport expenses to get to and from the location you are travelling. However, you can't claim a deduction for regular trips between home and work even if you live far away from your office location as this is considered private travel.
If you want to learn more, you may visit the Australian Taxation Office website by clicking here.
Sidenote: We’re not professionals in this matter, so we highly recommend you consult with an accountant to get the best advice tailored to your circumstances.
Did you know the meaning behind the percentage signs on your grocery receipts before reading this article? Share your thoughts with us in the comments!
You may also learn how you can maximise your tax return through the video below:
Video Credit: Success by Sanja
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