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  • Working from home television grabs

    A high number of mistakes, errors and questionable claims has prompted the Australian Taxation Office to increase attention, scrutiny and education for home office expenses this tax time.

    The recordings feature Assistant Commissioner Kath Anderson speaking about what to be aware of this tax time. The video is available for downloadExternal Link for broadcast journalists.


    Assistant Commissioner Kath Anderson working from home

    With the rising trend of employees working from home, we understand there are extra costs involved.

    We are seeing increasing evidence that many taxpayers don’t know what they can and cannot claim. While these extra costs are usually deductible some taxpayers are either over-claiming or claiming some of their personal costs.

    When claiming working from home expenses, taxpayers must keep supporting records such as receipts, diary entries, and itemised phone bills.

    One of the biggest issues we are seeing is people claiming the entire amount of expenses like their internet or mobile phone, not just the extra bit related to work.

    If you are planning on claiming deductions, make sure you follow the three golden rules:

    • You must have spent the money yourself and not have been reimbursed;
    • it must be directly related to earning your income, not a personal expense
    • and you must have a record to prove it.

    We expect to disallow a lot of claims where the taxpayer hasn’t kept records to prove that they legitimately incurred the expense and that the expense was related to their work.

    When claiming working from home expenses you should remember that we may also contact your employer to confirm your claim.

    Last modified: 12 Sep 2018QC 56783