Tips myth-ing the point
TAXPAYERS are making potentially costly mistakes on their tax returns by claiming wrong deductions based on myths.
Tax time 2018 is almost one month old and the Australian Taxation Office is noticing many people putting their faith in incorrect advice given by workmates, family and friends.
It says that the most common myths include believing there is a $150 automatic deduction allowable for work-related clothing and laundry, credit card statements can be used instead of receipts as evidence, and you can claim makeup with sunscreen if people work outside.
“Quite often it’s wellintentioned family and friends. We hear of people being down the pub and hearing what their mates and colleagues claim,” said ATO assistant commissioner Kath Anderson.
She said that in some workplaces there was almost a competition to get the highest tax refund, with employees seeking agents known for big deductions.
“There are some people who need further education, even in the agent population. Where we see a large claim that looks inaccurate we take action on that straight away.” information and guides about deductions for specific jobs.
“The key thing is: did you incur the expense and was it incurred in gaining assessable income?” Dr Raftery said.