ATO Targeting Specific Deductions

The Australian Taxation Office (ATO) has decided to change its usual tactic of targeting specific professions and is now targeting specific deductions. In the 2014 tax season, the areas of deductions targeted are going to be focusing on:

  • overnight travel;
  • transporting bulky tools and equipment; and
  • work-related proportion of use for computers, phones and other related electronic devices.

If any claims are made on the 2014 income tax return, it is recommended that extra records and notes are kept of the reasons why these claims are being made, how these claims are being substantiated and what private use has been included in determining this claim.

The common mistakes that were revealed during audits are that claims are made without any evidence to support how the claims were apportioned between private and work expenses, claiming travel between home and work and claiming the full deduction for a travel allowance without having spent that much.

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