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  • Work-related expenses

    We are paying attention to people who are over-claiming work-related expenses.

    If your clients are claiming work-related expense deductions, they need to satisfy the following:

    • they must have spent the money and were not reimbursed
    • it must be directly related to earning their income
    • they must have a record to prove it.

    Help your clients get their deductions right by advising them:

    • to consider if their employer would confirm the expenses were required to earn their income and that they were not reimbursed.
    • they are not automatically entitled to claim standard deductions. Exceptions to keeping written evidence are there to make things simpler (for example, claiming $150 for laundry expenses or using the cents per kilometre method for car expenses). Your clients still need to show how they worked out their claims.
    • that receiving an allowance from their employer does not automatically entitle them to a deduction.

    The pre-filling service will include messages indicating which of your clients made higher than expected claims last year. This will help you identify whether their deductions require closer scrutiny when preparing their tax returns.

    Your clients can keep track of their deductions using the myDeductions tool in the ATO app. From July, they can email you their data for inclusion in their tax returns.

    See also:

    Last modified: 26 May 2017QC 45702