ATO issues tax return warning

The Australian Taxation Office has said it will pay close attention to the work expenses that people claim in their tax returns.

Assistant commissioner Tim Loh said if you claim more working-from-home expenses than in a typical work year, the ATO would expect to see a corresponding reduction in working-from-office expenses such as clothing, parking and tolls.

Mr Loh also said that if your working arrangements for this financial year were different from those of the previous year, you can’t just copy and paste your FY21 claims for FY22.

"If your expense was used for both work-related and private use, you can only claim the work-related portion of the expense,” he added. “For example, you can’t claim 100% of mobile phone expenses if you use your mobile phone to ring mum and dad.”

To claim a deduction for a work-related expense:

· You must have spent the money yourself and not have been reimbursed

· The expense must directly relate to earning your income

· You must have a record to prove it (usually a receipt)