In the 2023 financial year, the average claim for work-related expenses by nearly nine million Australians stood at about $3,000, predominantly linked to remote work. The ATO emphasizes careful checking of criteria for claims, including personal expense validation and sufficient documentation. While some claims require receipts, including for amounts under $300 and certain mileage claims, others will be simplified under the updated fixed rate for home office expenses, increasing to 70 cents per hour from July 1, 2024.
Nearly nine million Australians claim work-related expenses on their tax returns each year, with around half of the claims related to working from home.
According to the ATO, taxpayers must check that they spent the money themselves, connecting their expenses directly to earning income, and maintaining records to prove it.
Incorrectly claiming work-related expenses was one of the key focus areas of the ATO, with Assistant Commissioner Rob Thomson noting it was something people were "most likely to get wrong."
The fixed rate for work from home expenses has increased from 67 to 70 cents per hour, effective July 1, 2024.
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