Cut and paste tax returns not the go

The Australian Taxation Office (ATO) is warning taxpayers to think twice before ‘copying and pasting’ work-related claims from last year’s tax return.

ATO Assistant Commissioner Tim Loh said there are some key changes to look out for this tax time when claiming your deductions.

“When you’re getting ready to lodge, consider the records you have to support your claims this year – don’t just copy and paste your claims from last year, this will raise a red flag for us,” he said.

Around 8.6 million Australians claimed nearly $21.6 billion in work-related expenses in their 2022 tax returns.

“We want people to get their deductions right on the first go and claim what they are entitled to – nothing more, nothing less. We have a series of 40 occupation and industry-specific guides which you should have a look at,” Loh said.

“Some occupations have expenses that are specific to their occupation. For example, flight attendants can claim rehydrating moisturisers and nurses can claim stethoscopes – our guides can help you get it right.”

Just under five million people claimed a working from home related deduction last financial year.

“We know a lot of Aussies are back in the office or have hybrid arrangements, so it’s important to consider whether your claims reflect your working arrangements,” Loh said.

To claim your working from home expenses, you can use the actual cost, or the revised fixed rate method to calculate your deduction, as long as you meet the eligibility and record keeping requirements.

“The revised fixed rate method has increased from 52 cents to 67 cents per hour worked from home, and you no longer need to have a separate home office or dedicated work-space – if you are working from the couch, you can still use this method,” Loh said.

The revised fixed rate covers your costs for electricity, gas, stationery, computer consumables, Internet and phone usage. You can claim a separate deduction for those expenses not included in the rate for example, decline in value of depreciating assets, such as computers and office furniture.

Meantime, last year nearly three million people claimed work-related car expenses, with most people using the cents per kilometre method.

“Generally, you can claim a deduction for the cost of trips you undertake in performing your work duties, and not for your ordinary commute between home and work,” Loh said.

This year, if you are eligible to claim work-related car expenses and you use the cents per kilometre method, the rate has increased from 72 cents to 78 cents per kilometre.

The cents per kilometre rate includes decline in value, registration, insurance, maintenance, repairs and fuel costs.