ATO warning over work-related journey bills after Aussie’s $20,000 tax declare

Australians have been urged to ensure they know precisely what they can and can’t claim after one taxpayer tried to slide by a $20,000 declare. There are all kinds of deductions you’ll be able to embody in your annual tax return to the Australian Taxation Office (ATO).

Some could be associated to your job, whereas others might be in your work-from-home setup. But the ATO has referred to as out one particular person’s try to cut back their taxable earnings by an enormous quantity.

“A taxpayer really tried to claim $20,000 in rideshare service fees to get to and from work. The reason? They had lost their licence,” the ATO mentioned.

The tax workplace mentioned this declare was rejected as a result of you’ll be able to’t make a deduction for regular journeys between residence and work.

This rule applies even should you dwell lengthy distances from work, work outdoors regular enterprise hours, do work-related duties on the way in which residence, proceed to do work when you get residence, or are on name.

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But there are many work-related journey deductions which are completely above board.

The ATO mentioned you’ll be able to declare journey bills if:

• It requires you to carry out your position, like travelling out of your workplace to a different website or to fulfill a consumer

• You have to attend work-related conferences or conferences away out of your common place of business

• You ship gadgets or gather provides

• You have to journey between two or extra separate locations of employment, nonetheless, a kind of locations cannot be your own home

But staff have to be cautious that they do not double-dip if their work affords them a journey allowance.

“It is common for employees to receive a travel allowance, especially if their job regularly requires them to travel away from their home overnight to perform work duties,” tax accountant Hripsime Demirdjian informed Yahoo Finance.

“The travel allowance will typically cover expenses for accommodation, food, and drink. The allowance can also cover incidental travel costs, which are smaller costs you incur as a result of travelling, such as parking and public transport.”

If you obtain this allowance, you’ll be able to’t then additionally make a declare for a similar bills in your tax return.

If you employ your automotive, there are two strategies you should use with the ATO: