What is the ATO targeting this Tax Time?

This year the ATO is targeting Work-Related Expenses, so you need to ensure that what you claim is reasonable.   

They are focusing on expenses such as work clothing, vehicle, travel, phone and self-education. 

Last year the ATO introduced real time monitoring of online tax returns, and sent messages about questionable claims as the returns were being prepared. 

All income from the sharing economy – apps such as Uber, Airbnb, Stayz and Airtasker – must also be included in your tax return. 

Here are some TIPS from Jim’s Tax on how to get things right and Minimise the Tax You Pay.

  • Tip 1 - Benchmarks

    The ATO have benchmarks for each occupation and if you are claiming deductions outside of these benchmarks, then be prepared for a phone call, and make sure you have all the receipts to prove your claim.

  • Tip 2 - Claim all potential Deductions

    Common work related expenses that people claim are:

    • Travel expenses – You can claim some travel expenses if they are directly connected with your work, but generally you can’t claim for travel between home and work.
    • Vehicle expenses – You can claim a deduction for work-related expenses if you use your own car in the course of performing your job as an employee.
    • Laundry, clothing and dry cleaning – You can claim a deduction for the cost of buying and cleaning occupation specific clothing, protective clothing and unique distinctive uniforms.
    • Home office expenses – You may be entitled to claim deductions for home expenses including a computer, phone and other electronic devices you are required to use for work purposes.
    • Self- education expenses – You may be entitled to claim a deduction for self-education expenses if your study is work related.
    • Tools and equipment – If you buy tools, equipment or other assets to help earn your income, you may be able to claim a deduction for some or all of the costs.

    (information supplied by https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/)

  • Tip 3 - Use a Specialist

    We recommend you get things right the first time and claim the maximum deductions you are entitled to by using a Registered Tax Agent. Make sure they are registered by checking with the Tax Practitioners Board at www.tpb.gov.au.

  • Tip 4 - Cost versus Benefit of using a Tax Agent

    As in everything you need to consider whether you will be getting value for money.  A good adviser will ensure you get it right the first time and maximise your deductions. 

    Jim’s Tax can help you claim your maximum tax deductions and safely lodge your personal and business tax returns.

To find out more call 131 546 or go to http://www.jimstax.com.au  


For additional information, visit the Jim’s Bookkeeping/Tax YouTube channel.