This tax time, the ATO, as usual, has nominated some tax claim hot spots that it will be paying attention to — and which you could warn clients who may be likely to claim these deductions with abandon.
For example, the ATO has already flagged that it will be checking returns for taxpayers who take advantage of the exemption from keeping receipts when spending less than $150 on laundry expenses. The ATO believes that too many people are claiming this without actually incurring the expense.
In an announcement issued 4 June, the ATO said that for last financial year around six million taxpayers claimed work-related clothing and laundry expenses that totalled about $1.5 billion. It said that 25% of all laundry and clothing claims were exactly at the record-keeping limit.
Assistant Commissioner Karin Foat said in the ATO announcement that it viewed as “unlikely” that so many working taxpayers would be required to wear uniforms, protective clothing or occupation-specific clothing to earn assessable income. Readmore
