ATO focus on work-related deductions

The ATO has announced that it will focus on work-related deduction claims that are higher than expected, in particular, car expense claims for transporting bulky tools, and deductions for travel, internet and mobile phone, and self-education.

The ATO said that this year, for the first time ever, it will check taxpayers’ deductions in real-time as they complete their return. It will take a closer look at any unusual deductions and contact employers to validate these claims.

The ATO has also reminded that there has been a change in the rules for calculating car expenses this year and taxpayers need to use a logbook or the cents per kilometre method to support their claims.