ATO CRACK DOWN ON WORK RELATED EXPENSES, IN PARTICULAR THE “HOME OFFICE”!

Work related expenses will be front and centre this July with the ATO advertising regularly over the past year that it will be tracking everything from home office claims to car use and deductions made for work uniforms and clothing.

Home office deductions, phone and internet use and work equipment deductions will be scrutinised closely this year. 

If you work from home, you are able to claim a deduction for work furniture, heating and cooling, computers and equipment contained in a home office.

In saying that, you must have a designated home office space – working from the couch or kitchen table is not a designated separate area!

Deductions can be made for the percentage of home phone and internet used for work (you cannot claim the whole expense).  Additionally, you must be able to show itemised evidence of the amounts. E.g. itemised phone bill from which you can identify work related calls or other records.

The ATO has reminded taxpayers that workers cannot claim deductions for mortgage repayments, council rates and home insurance.

Don’t get caught out.  If you’re unsure what you can or cannot claim, please contact our office to discuss.