About a fifth of Australian workers use AI tools at work, and the ATO says these are a fair deduction when paying taxes, as long as they can tick three checkboxes.
With tax time just around the corner, here are three tips to increase your deductions and ensure a healthy refund.
Premium subscriptions to generative AI tools such as ChatGPT Plus and Midjourney can cost employees hundreds of dollars a year, which the Australian Taxation Office says is deductible if they are used to generate income. It is said that it is correct as
H&R Block’s Director of Tax Communications, Mark Chapman, discusses some of the strangest tax claims he’s received from unique professionals.
“It depends on individual facts and circumstances,” said Assistant Secretary Tim Roe.
“We look at three golden rules: you spend money on yourself and you don’t get paid back. And we need records to prove[expenses]e.g. receipts.”
ATO Assistant Commissioner Tim Lowe.Photo: Attached
Artificial intelligence, such as chatbots and text-to-image generators, have only become mainstream in the last 12 months, so the ATO isn’t sure this will become a common expense claim, Law said. .
“I haven’t seen the statistics come out yet, but once people start logging tax returns, we will know if people are claiming those kinds of expenses,” he said. said.
ChatGPT Plus gives you access to a better, faster, more feature rich version of our free chat bot, priced at $22/month (approximately $33/month).
Meanwhile, popular text-to-image generator Midjourney has subscription plans ranging from $8.80 to $132 (about $12 to $199) per month.
And there are countless other generative AI tools available to help people work more efficiently.
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A Lonergan Research survey of 1,000 Australians in March found that nearly one in five (18%) had used some form of generative AI tool as part of their job, and about jumped to one-third (34%).
Those numbers may have increased in recent months as the technology became more popular, but not all users have paid subscriptions.
Pure Public Relations’ Phoebe Netto said ChatGPT has made her team’s research more efficient.Photo: Attached
Phoebe Netto, founder of Pure Public Relations, said that to help his PR firm improve research efficiency and quickly understand a subject without searching Google, and in some cases a rough first draft of content. I mentioned that I am using the paid version of ChatGPT to create the .
“We also use it to synthesize information, remove filler words in transcripts, and support the brainstorming process,” she said.
“We also use transcription AI tools across the team, which has greatly improved productivity.
“These tools used to streamline our work are business expenses we charge, as well as subscriptions and software that help us deliver PR services.”
Seaquatix’s Aprille Lim uses AI tools in her business.Photo: Attached
Sydney business owner April Lim said it was a “game changer” to find out that the cost of AI tools would be tax deductible.
The founder of waterproof bag brand Seaquatix was considering signing up for ChatGPT Plus after testing a free version of the chat bot at his company.
“After seeing how ChatGPT can streamline our workflow and make things more efficient, we will definitely do this again next fiscal year,” she said.
