Avoid being Targeted
If you work then the answer is probably YES.
Unlike recent years, instead of a specific industry, this year the ATO intends to target specific work related expenses.
These areas include:
- Claiming a computer, phone or other electronic device as a work-related expense
- Transporting bulky tools and equipment
- Overnight work-related expenses
This pretty much covers everyone.
If you use a computer, phone, tablet or ‘other electronic device’ the good news is that there’s a good chance you can make a claim. However, it does mean that your claim must be accurate and you must be able to prove it.
The ATO’s big push this year is to claim the right amount. No More. No Less.
Another big push is for people to consider their MyTax solution which was discussed in our June post [insert a hyperlink to blog].
Be warned though, MyTax will pre-populate some fields to make it easier to lodge but it may not maximise your return.
The Australian Taxation Office will contact over 350,000 taxpayers who have errors in their tax returns and cross-check data from third parties as it moves to clamp down on dodgy claims. More than half of the 350,000 taxpayers had claims checked because of basic errors such as misspelt names and addresses, wrong bank details or birth dates and the missing details of spouses.
- The area being monitored was double-dipping: making work-related claims on your tax return when you had claimed them from work already.
- Excessive work-related claims – for example, claiming all your mobile phone bills and internet connections that are 90 per cent personal use but only 10 per cent work-related – and personal travel claimed as work travel would be monitored.
- You must have spent the money yourself, it must be related to your job and you must have a record to prove it.
- Income from renting out property would also be scrutinised, as would deductions for repairs and maintenance of such property.
- Holiday homes reserved for private use by family and friends are under the spotlight.
- Instances where a husband and wife jointly owned a property but split the income and deductions unequally to gain a tax advantage for the highest income earner.
- Claims for repairs and maintenance shortly after the property was purchased might also be rejected. These would more likely be treated as a capital works deduction.
- Interest deductions claimed for the private proportion of loans would also be dismissed.
If you’re not sure, use Refund Express, make some notes in the comments area’s provided and we can help determine if you can or can not claim the deduction. We’re here to help you maximise your Tax Refund, we’re experts in Tax so why not ask for help.