Earn
Working from home? Here’s what the ATO is watching
A record number of Australians are making work-from-home claims this tax time, and the ATO is gearing up to catch common blunders like phone and internet deductions.
Working from home? Here’s what the ATO is watching
A record number of Australians are making work-from-home claims this tax time, and the ATO is gearing up to catch common blunders like phone and internet deductions.
A high proportion of mistakes, errors and “questionable claims” is prompting the Tax Office to increase scrutiny on work-from-home expenses this tax time.
As a taxpayer, you can claim costs incurred as a direct result of working from home, but the ATO is watching for those who blur the line between private use and work use expenses.
“There is a rising trend of employees working from home, and while extra costs related to working from home are usually deductible, we are seeing some taxpayers either over-claiming or claiming private costs,” said ATO assistant commissioner Kath Anderson.
“There is mounting evidence that many taxpayers don’t know what they can and cannot claim. In particular, we are seeing some taxpayers claiming expenses they never paid for, expenses their employer reimbursed, private expenses and expenses with no supporting records.”
For example, one of the biggest issues the ATO is seeing includes people claiming the entire amount of expenses like their internet or mobile phone, not just the work-related component.
“In reality, the rest of us are subsidising their private phone calls and internet usage, which is not OK,” Ms Anderson said.
“Claims for the work-related portion of expenses like phone, internet, depreciation of your computer, printing and stationary are all allowed.”
Further, the additional costs of running expenses like electricity for heating, cooling and lighting are deductible, but you need to be able to demonstrate that there were additional costs incurred by working from home.
“If working from home means sitting in front of the TV or at the kitchen bench doing some emails, it’s unlikely that you are incurring any additional expenses. However, if you have a separate work area, then you can claim the work-related portion of running expenses for that space,” Ms Anderson said.
Side hustle
What you should know before hosting on Airbnb
Whether you’re a traveller or not, it’s most likely you’ve heard of Airbnb. The digital marketplace, which connects people who want to rent out their extra space or accomodation to guests, has g...Read more
Side hustle
How to make money with Uber
Ridesharing services have grown in popularity, especially among career-orientated Aussies looking for a quick and easy side hustle. ...Read more
Side hustle
Side-giggers warned to beware of ATO fines
With tens of thousands of Aussies turning to side gig and contracting work to generate an income, an expert has warned that many could fall foul with the ATO for failing to operate their activities as...Read more
Side hustle
How profitable is running an Airbnb?
Many home owners have joined the Airbnb community as host to earn money. How much profit can you make from this business venture? ...Read more
Side hustle
Mother-daughter duo turn side hustle into booming business
Mother-daughter duo Maria and Anastasia Papazoglou saw a gap in the market five years ago for affordable, finer sterling silver jewellery. Five years on, the brand they co-own, The Silver Collective, ...Read more
Side hustle
How this Sydneysider launched a quirky side hustle at the height of COVID
After seeing his regular work decline when COVID-19 hit Australia in March, one Sydneysider decided to try his hand at starting a new business largely based on his favourite childhood pastime – jigs...Read more
Side hustle
How to promote your product on social media
Promoting your product on social media can seem like a difficult undertaking. Here are the ways you can effectively use these digital platforms for marketing. ...Read more
Side hustle
Tips for selling stuff online
Selling your unwanted items is a practical way to declutter your home and earn extra cash at the same time. ...Read more
Side hustle
What you should know before hosting on Airbnb
Whether you’re a traveller or not, it’s most likely you’ve heard of Airbnb. The digital marketplace, which connects people who want to rent out their extra space or accomodation to guests, has g...Read more
Side hustle
How to make money with Uber
Ridesharing services have grown in popularity, especially among career-orientated Aussies looking for a quick and easy side hustle. ...Read more
Side hustle
Side-giggers warned to beware of ATO fines
With tens of thousands of Aussies turning to side gig and contracting work to generate an income, an expert has warned that many could fall foul with the ATO for failing to operate their activities as...Read more
Side hustle
How profitable is running an Airbnb?
Many home owners have joined the Airbnb community as host to earn money. How much profit can you make from this business venture? ...Read more
Side hustle
Mother-daughter duo turn side hustle into booming business
Mother-daughter duo Maria and Anastasia Papazoglou saw a gap in the market five years ago for affordable, finer sterling silver jewellery. Five years on, the brand they co-own, The Silver Collective, ...Read more
Side hustle
How this Sydneysider launched a quirky side hustle at the height of COVID
After seeing his regular work decline when COVID-19 hit Australia in March, one Sydneysider decided to try his hand at starting a new business largely based on his favourite childhood pastime – jigs...Read more
Side hustle
How to promote your product on social media
Promoting your product on social media can seem like a difficult undertaking. Here are the ways you can effectively use these digital platforms for marketing. ...Read more
Side hustle
Tips for selling stuff online
Selling your unwanted items is a practical way to declutter your home and earn extra cash at the same time. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
