With tax deadlines fast approaching, you may be starting to think about what expenses you can claim. One of the commonly targeted areas where people try to claim that little bit extra is work-related deductions.
However according to H&R Block, the ATO will be paying extra attention to what it calls ‘Tax Gaps’ – one the major ones being work related expenses. Although it may seem like a small deduction here or there, when you consider the compounding number of individual returns lodged in Australia each year, the gap certainly adds up.
Some of the area’s believed to be in ATO’s focus include a crackdown on:
|– Work related clothing claims/uniforms|
|– Mobile phone and internet/data usage|
|– Home office deductions|
|– Subscriptions and union fees|
|– Overtime meal deductions|
|– Deductions under $300 without receipts|
|– Fuel and car deductions where individuals take advantage of 68cent per km flat rate for 5000km or less|
Keep this in mind if you have not lodged your return yet – or prepare for next financial year to avoid any issues or getting audited at tax time.