ATO audit targets for 2005-06
Did you know that almost seven million taxpayers claimed over $11 billion of deductions for work-related expenses in their tax returns for the 2005 tax year?
The Tax Office examines claims for work-related expenses very closely. They have found a range of common mistakes as well as claims that are false or which cannot be substantiated. During the past tax year they contacted more than 225,000 people about their claims.
For the 2006 tax return the Tax Office will review a range of deduction claims including expenses on motor vehicles, self-education, home-office and travel.
Each year a number of occupations are selected for specific focus because they have above average work-related expense claims, a high number of work-related expense claimants or because the ratio of work-related expense claims are high compared to the salary and wages.
For the 2006 tax return the Tax Office focus will be on:
- business professionals
- hospitality industry service workers
- factory hands, store workers and process workers
- mechanical, automotive and electrical tradespersons
- information technology professionals
- mining site employees
The following rules will help to ensure that you get it right.
- You must have incurred the expense in the year for which you are claiming.
- The expense must be work-related and not private. If the expense has been reimbursed by your employer then it is not able to be claimed.
- Receiving an allowance from your employer does not automatically entitle you to a deduction.
- If your claims total more than $300 then you need to have written evidence. You can now use records other than paper receipts.
