The ATO have announced that it will be closely examining claims for work-related car expenses this tax time as part of a broader focus on work related expenses. They are particularly concerned about taxpayers claiming for things they are not entitled to, like private trips, trips they did not make and car expenses that their employer paid for or reimbursed them for. The Tax Office has improved their ability to recognise unusual claims with enhancements in technology and data analytics by identifying people claiming things like home to work travel or trips not required as part of their job.
The 3 Golden Rules taxpayers should remember to get it right are:
- You have to have spent the money yourself and can’t have been reimbursed.
- The claim must be directly related to earning your income, and
- You need a record to prove it.