With rising cost of living pressures it might seem tempting to try to pad out the deductions, but Aussies are being warned to play it straight. Here's what you can and can't claim. 9News
With rising cost of living pressures and interest rates, along with expenses born of the pandemic, it might seem tempting to try to pad out the claims and deductions.READ MORE:CA ANZ Tax Leader Michael Croker said Chartered Accountants have seen and heard it all – but trying it on with the ATO is not a smart strategy.
"Another tax agent reported a client saying he was an 'entertainment consultant', trying to claim his video games and streaming services. He was actually a checkout worker at a well-known technology retailer."And perhaps not as altruistic as they thought, another person sought to claim travel to Cairns as a 'gift or donation' for tax deductible purposes, because they gave a blood donation.
If keeping track of each item of work from home expenditure is too hard, an accountant can help determine whether somebody can use the ATO's "shortcut" tax method to claim expenses at 80 cents per hour for each hour of working from home.People can claim self-education expenses when the course directly relates to their occupation.
"But remember, you may need to have written evidence that shows you bought the clothing, the amount you spent, and your cleaning costs," Croker said."It's great if you gave to charity but if that charity is not registered as a Deductible Gift Recipient and you don't have a paper record of the donation, then don't expect the ATO to be as charitable," Croker said.
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