Support taxpayers to avoid claiming pitfalls

ATO Assistant Commissioner Rob Thomson said the ATO was focused on supporting taxpayers to get their lodgement right the first time.
“These are the areas that people are most likely to get wrong, and while these mistakes are often genuine, sometimes they are deliberate,” he said.
“Take the time to get your return right.”
In 2023, more than eight million people claimed a work-related deduction and around half of those claimed a deduction related to working from home.
Last year, the ATO revised the fixed rate method of calculating a working from home deduction to broaden what is included, increase the rate and adjust the records you need to keep.
These changes are now in full effect this financial year, meaning you must have comprehensive records to substantiate your claims as you would for any other deduction.
To use this method, you need records that show the actual number of hours you worked from home (like a calendar, diary or spreadsheet), and the additional running costs you incurred to claim a deduction (like a copy of your electricity or internet bill).
“Deductions for working from home expenses can be calculated using the actual cost or the fixed rate method and keeping good records gives you the flexibility to use the method that works for you, and claim the expenses you are entitled to,” Mr Thomson said.
“Copying and pasting your working from home claim from last year may be tempting, but this will likely mean we will be contacting you for a ‘please explain’.”
“Your deductions will be disallowed if you’re not eligible or you don’t keep the right records.
Mr Thomson suggested remembering the “three golden rules for claiming a deduction for any work-related expense”: You must have spent the money yourself and weren’t reimbursed, the expense must directly relate to earning your income, and you must have a record (usually a receipt) to prove it.
The ATO offers a range of tax help and support to taxpayers this tax time at ato.gov.au.