Tax office cracks down on $1.2 billion work deductions rort

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The Australian Tax Office (ATO) is cracking down on work-related tax deductions this end of financial year, with car expenses, travel, internet and mobile phone usage, and employment-related education deductions all under scrutiny.

Of $21 billion in work-related tax deductions Australians claimed last financial year, the tax office believes about $1.2 billion is rorted.

Car expenses are the most likely be over-estimated, with one in three employees claiming for car travel.

ato australian tax office work related tax deductions super contributions property starting an smsf

"It's important to remember that a small amount of non-compliance for an individual can lead to big dollars," an ATO spokeswoman told Money.

"There are 13 million taxpayers, so if everyone pays $1 less than they should, it adds up to a lot."

The tax office is using increasingly sophisticated technology and data-matching to catch out Australian taxpayers doing the wrong thing.

"There are three golden rules to remember when making work-related expenses claims," she said.

"You must have spent the money yourself and weren't reimbursed, it must be directly related to earning your income, and you must have a record to prove it."

The ATO is also paying particular attention to omitted income and tax deductions being claimed for rental properties.

Visit ato.gov.au/myDeductions or ato.gov.au/workrelatedexpenses for more information.

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Comments
Mike
July 7, 2017 11.50am

The Tax Office is in NO position to tell anyone what to do, given the recent scandal there. What a bunch of hypocrites ! How dare they lecture us when their own house is not in order. Plank, splinter, anyone ?!