Beware, the ATO is coming after you! – Bellarine Business Advisors

There has been a lot of talk about the amount of revenue the ATO is missing out on from individual taxpayers incorrectly claiming work-related expenses.

A reported total of more than $21 billion is being claimed, with the average individual claiming $1,040.

The biggest area of concentration is the work-related motor vehicle claims, where 5,000 kilometres and laundry deduction of $150 is consistently claimed.

So before you prepare your income tax returns ensure you have appropriate support for the claim to avoid being penalised by the ATO.

Here are some tips: Laundry for compulsory logoed work uniform, protective clothing and occupation specific – $1 per load if washed separately.

Motor Vehicle kilometres – don’t need written evidence but must be able to show how you worked out your kilometres – 66c per km up to 5,000km.

Mobile phone claim/internet – you need to identify your work use for each service over a four-week period during an income year – claim a percentage.

Home office – 45c per hour.

The ATO does require receipts and often in an audit requires a written letter from your employer confirming you need to use car, phone and internet for your work.

Any missing receipts/bills will be automatically disallowed.

It is your entitlement to claim workrelated expenses, but ensure your tax agent explains to you what you need
to keep and record to substantiate any claims so you’re ready when the ATO knocks on your door.

For help with your tax return, contact Bellarine Business Advisors.