Exercitation ullamco laboris nis aliquip sed conseqrure dolorn repreh deris ptate velit ecepteur duis.
With the end of financial year fast approaching, Australian Taxation Office (ATO) has cautioned that it has its sights set on work-related expenses in 2021-year income tax returns.
Assistant commission Tim Log says, “if you are working from home, we would not expect to see claims for travelling between worksites, laundering uniforms or business trips”.
“You can’t simply copy and paste previous year’s claims without evidence.”
The ATO’s data analytics will also be on the lookout for claims where someone’s deductions are much higher than others with a similar job and income.
“We also want to reassure the community that we will be sympathetic to legitimate mistakes where good faith efforts have been made’’.
“However, where we spot people deliberately claiming things they’re not entitled to, we will take firm action.”
Working from home expenses
The temporary shortcut method for working-from-home expenses is an all-inclusive rate of 80 cents per hour for every hour worked from home. Keep a record such as a timesheet, roster or diary entry that shows the hours you worked. If you want to claim part of an expense more than $300, such as a desk or computer in future years, you need to keep your receipts.
Personal protective equipment
If your duties require physical contact or proximity to customers or clients, or your job involves cleaning premises, you may be able to claim items such as gloves, face masks, sanitiser, or antibacterial spray. This includes industries like healthcare, aviation, hair and beauty, retail, and hospitality. You will need to have purchased the item for use at work, paid for it yourself and not been reimbursed. You also need a record, preferably a receipt, to support your claim.
Clothing, self-education and travel expenses
The value of claims for work-related non-PPE clothing and self-education felt last year because of travel restrictions and limits on the number of people who could gather in groups, a trend the ATO expects to continue in 2021 tax returns. Employees who work from home due to Covid-19 but sometimes need to travel to their regular office cannot claim the cost of travel from home to work, as these are still private expenses.
If you want to find out about tax deductions, you can claim you can call Pro Tax Accountancy to help you on 0481 953 556.
Sources: Australian Taxation Office & Seven News