Did you know that you may be able to claim your Sans Beast tote bag as a tax deduction?

It's almost the end of the financial year in Australia + many of us are looking at potential deductions to reduce our taxable income. When it comes to claiming work-related expenses, it's worth remembering that it's not just traditional briefcases that can be tax deductible, but any laptop bags, tote bags + handbags that you use to carry essential work items.

Here’s how you can determine if your Sans Beast handbag qualifies + how to go about claiming it.

Understanding the Basics

The Australian Taxation Office (ATO) allows individuals to claim deductions for expenses that are directly related to earning their income. If you use your Sans Beast tote bag primarily for work purposes, you might be eligible to claim it as a work-related expense if it meets these conditions:

1. The expense must be directly related to your work.
2. You must have spent the money yourself and not have been reimbursed.
3. You must have a record to prove the expense.

Keeping Records

To substantiate your claim, it’s crucial to keep detailed records. The ATO may require evidence to support your deduction, so make sure you:

1. Keep the Receipt: Always keep the original receipt for your bag purchase. Reach out to us at studio@sansbeast.com if you need us to re-send your tax invoice from a previous order.
2. Document Usage: Maintain a log or diary that details how often and for what purposes you use the tote bag for work-related activities.
3. Business Use Percentage: If you use the tote bag for both personal and work purposes, calculate the percentage of time it’s used for work. Only the work-related portion can be claimed.

Examples of items you carry + use for work purposes include laptops, tablets, work papers, protective equipment or diaries. It doesn't include personal items like gym gear, food, or a personal phone, tablet or laptop. 

If you carry your personal items in a separate bag - like a smaller crossbody bag, phone sling or even simple cotton canvas tote to hold your phone, wallet, lunchbox, makeup etc - you can keep your business bag purely for work items + make tax-time calculations much easier.

An immediate deduction is available for items that cost $300 or less (well, hello there, Universo Tote), if you use them more than 50% of the time for a work purpose. Check the ATO website to see if you've met all the criteria for an immediate deduction.

How to Claim the Deduction

Once you’ve determined that your Sans Beast tote bag qualifies as a work-related expense, follow these steps to claim your deduction:

1. Include the Expense in Your Tax Return: When filling out your tax return, include the cost of the tote bag in the “Other work-related expenses” section.
2. Adjust for Business Use Percentage: If the bag is used for both personal and work purposes, only claim the percentage that is work-related. For example, if you use the bag 60% of the time for work, only claim 60% of the purchase price.
3. Seek Professional Advice: It’s always wise to consult with a tax professional. They can provide guidance specific to your situation and ensure you’re maximizing your deductions while staying compliant with tax laws.

We always recommend shopping responsibly, and choosing products that offer the trifecta of style, functionality + lasting value. Knowing that your tote bag can also be a tax-deductible work expense adds another layer of benefit to your investment. Here's to making the most of your stylish choices, both in your wardrobe + on your tax return.