Treatment Of Cash Paid Back For Shortfall In Cash Register

Q&A Tax

Question :

Miss B is a cashier working at a convenience store. Last year, she paid $100 back to the shop owner due
to the cash register being short at the end of the shift and it shows on her payment summary.

Would this $100 be deductible?


Answer :

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, Miss B should be able to claim $100 as deduction in her income tax return as this is a
repayment for the cash shortage as part of her employment.

Also, refer to ATO ID 2002/397 (withdrawn) for more details.

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