The tax man has indicated they will be targeting claims in your tax return this year if the amount is regarded to be excessive. According to the Commissioner, Chris Jordan, they are cracking down on tax payers who are claiming deductions to make sure they get a refund.
It is very troubling that the Tax Commissioner believes that work related expenses are a cost to the Australian Federal Budget. Honest claims by individuals are no different to a business claiming to purchase its stock, and has no bearing on our treasury.
Of particular attention, the ATO is focusing on claims for laundry and motor vehicles.
Cleaning of work clothing
If you are entitled to the claim for your uniform, you are also entitled to claim laundry. The amount of laundry deduction can be estimated up to $150 without receipts.
A key thing to note is the difference between compulsory and non-compulsory uniforms.
Compulsory work uniform: Where you have set of clothes that identifies you as an employee of an organisation with a strictly enforced policy that makes it compulsory for you to wear the uniform while you’re at work. You are entitled to claim for the cost incurred to purchase the uniform and the associated laundry deduction.
Non-compulsory work uniform: Where your employer does not have a strictly enforced policy on wearing your uniform, you may still claim a deduction, but only if the employer has registered the uniform with AusIndustry. In this circumstance, please bring the registration number with you when completing your 2017 return.
There are no changes to occupation specific or protective clothing rules.
Car claims
The key area of review for the ATO in regards to car claims are:
- Just because you received an allowance does not entitle you to claim the cost of your car.
- You can’t claim between home and work, even if you did minor work-related tasks at home or between home and your workplace;
- If you were on call, or were called into work, the travel is not deductible.
- Claims for your car are not allowed even if there is no public transport or if you work outside of normal business hours.
Most importantly, the ATO has made reference to a ruling where the employee may only claim if they are required to undertake travel at the direction of the employer. This means that if it is your choice to use your car, the claim is not necessarily allowable.
You must also be paid for the travel by your employer. This is evidenced by an allowance payment or if it is embedded in your award or employment agreement.
Please remember to bring a reasonable estimate of the kilometres you have travelled if you are entitled to claim for your motor vehicle.
https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Vehicle-and-travel-expenses/Car-expenses/