The Australian Taxation Office (ATO) has re-issued a timely reminder that it is increasing its focus on work-related expenses (WRE). The crackdown has emerged from concern taxpayers are "pushing the envelope" when it comes to claiming expenses.
The crackdown isn't only due to a record increase in WRE claims, but it is now much more cost effective to review claims due to advancement in ATO data matching tools.
Quite simply, the ATO warns that WRE should only be claimed if the expense is essential to the client's employment, not just related to their work. The ATO will, and have already, altered and applied severe penalties to client's tax returns.
To assist making tax time easier, the ATO suggests using such tools as myDeductions in the ATO app to save and store accurate information about deductions during the year. These details can then be uploaded to your tax agent.
Read the below ATO links to find out more about WRE:
- ATO Warning
- Deductions you can legitimately claim
- Penalties for making false or misleading statements
- myDeductions App tool