The ATO is cracking down on individuals who are over-claiming work-related expenses.

The Tax Office is reminding individuals that they can only claim a work-related deduction if:
– they have spent the money themselves and were not reimbursed
– it is directly related to earning their income
– there is a record to prove it.

Expenses that cover both work and private purposes must be apportioned – you can only claim a deduction for the work-related portion.

Before claiming a deduction, individuals must consider if their employer would confirm the expenses were required to earn their income and that they were not reimbursed. Remember receiving an allowance from an employer does not necessarily entitle you to a deduction.

The ATO is also reminding people that they are not automatically entitled to claim standard deductions. Exceptions to keeping written evidence make things simpler, but they still need to have spent the money and be able to show how they worked out their claims.