Small business owners and employees are yet again being warned to play it safe with their tax returns this end of financial year, as the Australian Taxation Office looks to crack down on certain deductions.
After two years of working from home and COVID-19 interruptions, the ATO still expects a large number of WFH claims to come through its channels.
Unfortunately for many, Tim Tams are still a no-go.
“We don’t want to see Tim Tams as a tax deduction in your return,” ATO assistant commissioner Tim Loh said last April, a comment that rings true for the 2021-22 financial year also.
“If you incur the cost at home, it’s not deductible,” Loh said.
CPA Australia is trying to help Aussie’s stay on the ATO’s good side, with a statement from its resident tax expert Elinor Kasapidis sharing the six deductions that won’t get past the tax office this time around.
“You went back to the office and Rover destroyed the couch, so now he’s in doggy day care. Yes, we saw the Instagram post; no, the cost can’t be deducted,” Kasapidis says.
“Trackie-daks and Ugg boots may be the new black when it comes to ‘working from home’ wear, but they’re not a ‘uniform’ for tax purposes and can’t be deducted.”
“Agreed, your Zoom background is ‘amaze-balls’, but those carefully curated books, plants and throw rugs aren’t deductible.”
“Even though your handbag is big enough to hold a laptop, if it’s not required for carrying work items, it’s a firm ‘no’ as a tax deduction.”
“Just because your workplace runs a hot yoga class on ‘Wellness Fridays’ doesn’t mean your downward dog is deductible when working from home.”
“Sometimes we all need a Tim Tam or 12 to get through the workday. Your boss may provide bikkies at work, but that doesn’t mean you can claim them when you’re working from home.”
“When it comes to claiming deductions, if you think it’s a ‘yeah, nah’ situation, the answer is probably ‘nah’,” Kasapidis warned Australians.
Sophie Venz is a freelance writer and editor working remotely from wherever she can get an internet connection. You can find her bylines in Forbes, SmartCompany, Mamamia, Punkee and many more.
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