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Home arrow News arrow Categories arrow Archive Qtr 2 31.12.2009 arrow Work Related Expenses - Back on the Radar
Work Related Expenses - Back on the Radar
Since work-related expenses are one the most commonly claimed deductions, the ATO is launching a program telling people what they can claim in 2009...

Last year, 7.6 million people claimed deductions for work-related expenses, claiming $1,920 on average in work-related expenses, with the most commonly claimed items including car, travel uniforms, and self-education expenses.

 

The Tax Office pays close attention to these claims in tax returns, finding claims that are false, are not work-related, or which can’t be substantiated, in addition to common mistakes.

 

The Tax Office looks closely at tax returns from last year and identifies particular occupations where:

  • The average amount of claims are high;

  • There is an increase in the number of people making claims;

  • There are a lot of people making claims for the first time; and

  • Claims are made in rounded figures i.e. $1000 each

This year, the Tax Office will write to around 180,000 employees in the following occupations outlining common mistakes and providing advice on how to avoid these mistakes in this year’s tax return:

  • Truck drivers;

  • Sales and marketing managers;

  • Sales representatives; and

  • Electricians.

Some of the mistakes the Tax Office has seen from employees in these occupations include:

  • Truck Drivers – Claiming motor vehicle expenses associated with transporting bulky tools, including travel to and from work. Other mistakes include claiming travel allowances they aren’t entitled to and failing to keep appropriate records to support claims for internet and mobile phone use.

  • Sales representatives, sales and marketing managers – Over claiming home office expenses such as rent, rates, and electricity. Another common mistake is not keeping suitable records for mobile phone use and failing to adjust claims for private use. When claiming motor vehicle expenses, they should also ensue they keep an up-to-date log book, which includes starting a new log book when their circumstances change, such as changing jobs or purchasing a new vehicle.

  • Electricians – Claiming motor vehicle expenses for carrying bulky equipment even though their employer has advised there is no requirement to carry the equipment or the equipment does not meet the bulky provisions.

Other mistakes include claiming the living-away-from-home allowance when they’re not entitled to it and failing to keep a log book for expenses for a one tonne vehicle and when it is used for both business and private use.