ATO focus on claims for laundry expenses

June 14, 2018 by BELINDA — No Comment


The ATO will more closely examine taxpayers claiming work-related clothing and laundry expenses this tax time. The ATO state that with clothing claims up nearly 20 per cent over the last five years, it believes a lot of taxpayers are either making mistakes or deliberately over-claiming.

According to the ATO, common mistakes include people claiming ineligible clothing, claiming for something without having spent the money, and not being able to explain the basis for how the claim was calculated.

Assistant Commissioner Kath Anderson said, “Around a quarter of all clothing and laundry claims were exactly $150, which is the threshold that requires taxpayers to keep detailed records. We are concerned that some taxpayers think they are entitled to claim $150 as a ‘standard deduction’ or a ‘safe amount’”.

“Last year around 6 million people claimed work-related clothing and laundry expenses, with total claims adding up to nearly $1.8 billion. While many of these claims will be legitimate, we don’t think that half of all taxpayers would have been required to wear uniforms, protective clothing, or occupation-specific clothing.”

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