Get ready, the Tax Office is watching your work-related deductions this tax time.
The Tax Office keeps an eye on its reported “tax gaps”, which represent the gap between taxes paid, and taxes owed but not paid. Its latest update shows a $1.8 billion gap in corporate Australia, and an $8.7 billion gap among individuals.
The biggest revenue gap is constituted by individuals, and the Tax Office has long circled work-related expenses as a major contributing factor to the deficit.
Work-related expenses often have a small individual price tag, but given the volume of individual tax returns, this compounds heavily.
According to national tax and accounting network H&R Block, the following will be high on the ATO’s agenda this year:
- Claims for work-related clothing
- Deductions for home office use
- Overtime meals claims
- Union fees and subscriptions
- Mobile phone and internet costs
- Motor vehicle claims where taxpayers take advantage of the 68 cent per km flat rate for up to 5,000km
- $300 dollar or less deductions without receipts
Last year, other items such as unexplained wealth, cash-only businesses and unpaid superannuation were also matters of priority for the Tax Office.
This email address is being protected from spambots. You need JavaScript enabled to view it.
RELATED ARTICLES
Latest Opinions
-
Technologies in business: Some work, some don’t (yet)By Adam Zuchetti
-
What business can learn from the militaryBy Adam Zuchetti
-
Veterans a smart choice for your businessBy Adam Zuchetti
