WSFM 101.7
Pure Gold

Now Playing:

Loading...
Listen on

The Tax Office Has Warned ALL Australians Of ONE Huge Issue

The Australian Taxation office is setting its sights on dodge work-related car expenses and is warning there will be ‘no free’ passes.

ATO Assistant Commissioner Kath Anderson said taxpayers often trip up making claims they can’t justify, believing they are entitled to make a “standard” claim.

“Some people think they are entitled to a ‘standard deduction’ for car expenses, using the cents per kilometre method, but this is not the case,” Ms Anderson said in a statement.

“While it’s true that you don’t need written evidence for claims of up to 5000 kilometres per year, you do need to be able to show that you were required to use your car for work, and how you calculated your claim.”

More than three million people made work-related car expense claims last year and they totalled $8.5 billion and most of us claimed right at the limit that does not require detailed records”.

“While we have no issue with people using the cents per kilometre method and we expect that most claims at this threshold may be legitimate, but we are reminding people that there’s no such thing as a ‘free pass’ when it comes to deductions,” Ms Anderson said.

She said the three “golden rules” were that “you have to have spent the money yourself and can’t have been reimbursed”, the claims “must be directly related to earning your income”, and you must have a record to prove it.

SO WATCH OUT!

Share this: