Working from home: How to avoid falling foul of the ATO

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Working from home: How to avoid falling foul of the ATO
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Aussies who continue to claim deductions for these items — despite working from home — will find themselves on the ATO’s radar this tax time.

The ATO had to shift focus last year on getting stimulus benefits out the door as quickly as possible but warns it will return its attention to overclaiming work-related expenses this tax time, noting the pandemic had changed people’s work habits.

The ATO is on the lookout for people claiming substantial travel expenses despite working from home during the pandemic. Picture: iStock“But, if you are working at home, we would not expect to see claims for travelling between worksites, laundering uniforms or business trips.The ATO’s data analytics will also be on the lookout for claims where someone’s deductions are much higher than others with a similar job and income.

ATO assistant commissioner Tim Loh warns firm action will be taken against people deliberately making claims they’re not entitled to.“We know some of these unusual claims may be legitimate. So, if you explain your claim with evidence, you have nothing to fear,” Mr Loh said. “However, where we spot people deliberately claiming things they’re not entitled to, we will take firm action.”

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