October 2018
MLCo • October 4, 2018
Increased Scrutiny of Home Office Claims
The ATO has flagged that a record $7.9billion was claimed in Item D5 'Other Work Related Expenses', which includes home office expenses.
In particular, the ATO has flagged their concerns relating to taxpayers who are claiming:
- expenses they never paid for;
- expenses that their employer has reimbursed them for;
- private expenses; and
- expenses with no supporting records
Further, the ATO has warned that it may contact employers directly to verify expenses in connection with employees working from home.
As a reminder, taxpayers should consider the 'three golden rules' when claiming work-from-home deductions, being:
- the taxpayer must have spent the money themselves and have not been reimbursed;
- it must be directly related to earning the taxpayer's income, not a personal expense; and
- the taxpayer must have a record to prove the expense.
Also in this month's update:
- More help for drought-affected farmers with the immediate write off of fodder storage assets;
- Increase in Private Health Insurance excesses to help affordability;
- Package for reforms and legislation to combat illegal phoenix activity
