During your career you might have to pay for some things out of your own pocket when it’s convenient. You might have to pay for an Uber to a meeting, cover lunch with a client or even buy an emergency keyboard. Funnily enough, these are called work expenses, and you can usually claim them back from your employer or as a tax deduction. Learn how you can manage your work expenses with a debit card
The average weekly earnings for adults as reported by the ABS in February 2023 in Australia is $1,807.70. This is up 3.4% from November in 2022. You don’t want to be spending your hard earned cash or work expenditure, and not seeing that money come back to your account!

Work vs Personal Debit Card

If the debit card is issued by your employer then a lot of care needs to be taken that no you don’t charge personal expenses to the account.  You could do it easily and by most probably by accident, and it’ll create a large amount of unnecessary suspicion.

It is a good idea to have a personal debit card whenever taking the business debit card out. This card should look as different as possible from the work debit card even as far as having a distinctive design for this card if that is possible.

If the debit card has been used for a personal purchase then the best thing is to report it as early as it is found out so that some way of repaying the expense can be found.  This will cut down on any needless suspicion.

Keep track of your spending

It’s very important to keep a record of your work expenses, as you will need to report them to your employer or the ATO (depending on your accounts team). There are various methods to track your spending, such as:

• online banking,
• mobile apps,
• receipts or
• boring old spreadsheets.

Some debit cards also have tools that help you categorise your transactions, set budgets or alerts, or export your data to accounting software. Your employer might use a third-party tool like MYOB. No matter what the case is choose a method that works for you and stick to it.

Remember to keep those receipts

In most, not all cases you will need to provide proof of your purchases. When you claim your expenses from your employer or the ATO, you need to provide proof of your purchases. This can be in the form of receipts, invoices, bank statements or other documents that show the date, amount and nature of the expense. You should keep these documents for at least five years in case of an audit. Some debit cards also allow you to take photos of your receipts and store them in the app or online banking platform.

Know your workplaces policies

Depending on your employment status and what the type of work expense is, you might be able to claim them back from your employer, or as a tax deduction at the end of the financial year. You should check with your accounts team about any reimbursement policies or procedures, and follow them to the letter. This should help you ensure you get your money back inline with your works pay run.

As always with all things tax, you should also check with the ATO about the rules and requirements for claiming work-related deductions on your tax return. You can use the ATO’s online tools and guides to help you calculate and claim your deductions.

If you follow these tips and tricks, you’ll be able to make the most of your debit card and save money on your work expenses.

Disclaimer: The advice provided in this article is general in nature and should not be construed as professional financial or accounting advice. We recommend that you consult with your accountant or financial advisor for personalised advice.