Before you lodge your tax return for FY22/2023, the Australian Taxation Office (ATO) has an urgent warning for you: Don’t just replicate previous years’ returns.
Taxpayers and agents have been urged to pay attention to this year’s eligible deductions as the ATO highlights significant changes to work-related expense claims. The ATO has issued a warning that copying previous returns is no longer acceptable and will attract their attention.
Working From Home Expenses
With millions of Australians transitioning back to the office after adopting working-from-home (WFH) arrangements due to covid, it’s crucial that your claim aligns with your current working situation. The ATO’s revised fixed rate method for WFH deductions has increased to $0.67 per hour worked from home. Notably, the requirement for a separate office or dedicated workspace is no longer necessary. Whether you work from your couch or a designated area, you can still utilise this method. Remember to retain evidence such as monthly or quarterly bills to support your claims for expenses like electricity and gas.
Work-Related Car Expenses
Claiming work-related car expenses demands careful consideration to avoid duplicating deductions. Last year, approximately 3 million individuals sought to claim these expenses. The current rate has increased to $0.78 per kilometre, encompassing registration, insurance, maintenance, repairs, and fuel costs. It’s important to note that deductions are applicable to work-related trips and not regular commuting between home and the workplace. To substantiate your claim for up to 5,000 work-related kilometres per car, maintain written evidence, such as a diary record of work-related trips.
During tax time, staying informed and adapting to the changes outlined by the ATO before you lodge your claims is crucial. Avoid copying and pasting previous claims and pay close attention to the revisions in working-from-home deductions and work-related car expenses. By staying informed and maintaining proper records, you can confidently claim what you’re entitled to, ensuring compliance and avoiding potential issues with the ATO. If you have further questions, please contact our friendly team at support@walkerhill.com.au.
