Is it deductible?
Enquiry:
I am a cashier working at a convenience store. Last year, I paid $100 back to the shop owner due to the cash register being short at the end of the shift and it shows on my payment summary.
Would this $100 be deductible?
Explanation:
If you deal with money as part of your employment and you are required to repay your employer amounts (you can substantiate) in respect of cash shortages or client bad debts, then:
- you have incurred a deductible loss or outgoing in earning employment income
- you are entitled to claim a deduction for those amounts.
In this case, you should be able to claim $100 as a deduction in your income tax return as this is a repayment for the cash shortage as part of your employment.
Also, refer to ATO ID 2002/397 for more details.