In 2021, the Australian Taxation Office (ATO) will recommence their focus on addressing the overclaiming of work-related expenses like car and travel claims that are predicted to decrease in this year’s tax returns.
The ATO has noted that COVID-19 has changed up people’s work habits, so they expect their work-related expenses will reflect this.
If you are working at home, the ATO would not expect to see claims for travelling between worksites, laundering uniforms or business trips
The ATO will also look closely at anyone with significant working from home expenses that maintains or increases their claims for things like car, travel or clothing expenses.
You can’t simply copy and paste previous year’s claims without evidence. Some unusual claims may be legitimate, but if you explain your claim with evidence, you have nothing to fear.
Where the ATO spots people deliberately claiming things they’re not entitled to, they will take firm action.
Recent Comments