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ATO Cracks Down On Work-Related Expense Claims

 In a recent update from the ATO Commissioner Chris Jordan has warned that work-related expenses will be flagged and a crackdown will be carried out to ensure the 12 million people in Australia's workforce are doing the right thing in regards to claiming work-related expenses (WRE). 

In the 2014-2015 business year, around $22 billion was claimed in WRE's and there has been a warning issued to taxpayers that if there are considering claiming deductions that are not actually work-related expenses they should think again. 

Claims for expenses such as laundry and dry cleaning have risen considerably over the past five years by as much as 20% and the ATO is motivated to ensure taxpayers who are overclaiming are caught out to ensure only legitimate expense claims are approved. 

While valid expenses were entirely appropriate, the ATO indicated that individuals overclaiming for travel, work-related expenses, uniforms, self-education or cars would be investigated.
 
These days almost 75% of individual's tax returns are done by tax agents, making legitimate expense claims the norm.

With many small businesses not able to afford to provide all the tools of the trade and equipment for their employees, work-related expense claims are necessary to cover any outlaying of expenses required to carry out a professional role. 

Read the original article here.

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