The ATO just warned us about a big red flag it's watching for this tax season...
We know the Australian Taxation Office (ATO) has already issued its hit list for 2022, but now it’s come out and warned Aussies about the one big no-no it’ll be keeping a close eye on this year.
Here’s the gist: the ATO said that while many Aussies’ ways of working have changed since the beginning of the pandemic, people are still claiming car and travel-related expenses like it’s 2019. And that, Flux fam, is a major red flag for the ATO.
Let’s break it down.
If you’re working from home more yet still claiming the same amount of work-related travel expenses… The maths ain’t maths-ing. You can’t be in two places at once!
This is an example of what we call overclaiming - aka being a bit ambitious with what you can claim on tax - and it’s simply not a good idea.
The ATO does check up on claims, and you’ll need to have records and receipts to show if you’re audited down the track. If you’re worried about overclaiming because you’re genuinely confused, take a squiz at our guide to what you can claim if you work from home.
We all know the cost of living is skyrocketing right now, so it can be tempting to try and boost your tax return by overclaiming (again, nonononono).
If you’re stressing about your finances, we’ve got some money hacks to get you through the inflation sh*tstorm. Orrrr if you feel like you’re not in control of your budget, you can read our guide on how to write a monthly budget that slaps.
It’s simple! Only claim what you can prove. If you’re after more detailed personalised advice for your tax return, you can also chat to a tax agent.
All information contained in the Flux app is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.
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