The Australian Taxation Office (ATO) has warned taxpayers that it will be on the lookout for tax return claims copying the same expenses as past years when the COVID-19 pandemic had people working at home.
In a statement the ATO said it expected work-related expenses like car and travel claims to decrease in this year’s tax returns.
Assistant Taxation Commissioner, Tim Loh said COVID-19 had changed people’s work habits and the Office expected their work-related expenses to reflect this.
“We know many people started working from home during COVID-19, so a jump in these claims is expected,” Mr Loh said.
“But, if you are working at home, we would not expect to see claims for travelling between worksites, laundering uniforms or business trips,” he said.
“You can’t simply copy and paste previous year’s claims without evidence.”
Mr Loh said the ATO’s data analytics team would be on the lookout for unusually high claims, particularly where someone’s deductions were much higher than others with a similar job and income.
“We 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,” he said.
“But we know some of these unusual claims may be legitimate so, if you explain your claim with evidence, you have nothing to fear.”
He said the ATO would be sympathetic to legitimate mistakes where good faith efforts were made however, firm action would be taken against those who deliberately claimed things they weren’t entitled to.
Mr Loh said the temporary shortcut method for working from home expenses was available for the full 2020-21 financial year, an all-inclusive rate of 80 cents per hour for every hour people worked from home.
“If your specific duties require physical contact or close 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 anti-bacterial spray,” he said.
“If an employee is working from home due to COVID-19, but needs to travel to their regular office sometimes, they cannot claim the cost of travel from home to work as these are still private expenses.”
Mr Loh said the ATO had created nearly 40 occupation and industry guides to help people find out what they could and couldn’t claim.
The ATO’s occupation and industry guides can be accessed at this PS News link.