Tax Breaks with Store Vouchers and Gift Cards

Here’s a quick tip.

In Australia, the end of financial year is almost upon us and people would be looking to get organised in order to submit their tax claims shortly after the month clicks over. Usually, this might involve buying new equipment or devices whose value can be depreciated over several years as a work related tax benefit.

Of course, you need to outlay the entire cost upfront (or put the purchase on some sort of multi-year interest free arrangement). Sometimes it can be hard to make such outlays but you could be in luck.

If your workplace offers a reward or incentive program then you might be able to exchange reward points for store vouchers or gift cards which you can then put towards a new device either in part or in whole. This is more beneficial rather than getting the device directly from the incentive program as you will receive the tax invoice if you purchase with store vouchers (as you are redeeming directly with the store using prepaid funds). This opens up the possibility of a tax claim if you will use that device with respect to your work (you should confirm with your accountant or tax advisor though as your circumstances may vary).

Mind you, you may not always get the best price right off the bat from stores that have store vouchers but you can always try getting them to price match. If you’re lucky, they may have a policy to further beat the price by a percentage value making your vouchers and gift cards go further.

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