The ATO has updated its website to provide information on claiming expenses when working from home. The ATO states that a high level of mistakes, errors and questionable claims has prompted them to increase attention on home office expenses.
Last year, 67 million taxpayers claimed $7.9 billion in deductions for ‘other work-related expenses’, which includes expenses related to working from home. While taxpayers can legitimately claim additional costs incurred as a direct result of working from home, they need to be careful not to claim private expenses as well. According to the ATO, one of the biggest issues is taxpayers claiming the entire amount of expenses such as internet or phone use, not just a portion for work-related use.
This update from the ATO is a timely reminder of the importance of accurate record keeping for work-related expenses and, when apportioning expenses, maintaining a record of how the work-related proportion is calculated.