ATO getting tough on those who don’t respond
The Australian Taxation Office said it is instigating stronger action for people who have not met their tax...READ MORE
H&R Block has urged the government to pay close attention to the ATO's tax stats before tinkering with work-related expense deductions this budget season.
"One of the proposals which has been widely floated is the abolition (or substantial reform) of our current system of work-related deductions. The perception appears to have taken hold – fed by some over-enthusiastic tax policy wonks and ex-ATO staff – that work-related deductions are essentially one big rort on the tax system," the firm stated.
"The reality, of course, is rather different. People claim deductions for work-related expenses because, in the course of earning their income, they are obliged to spend their own money, for instance driving between worksites, staying overnight whilst working away from home, using their own phone or computer for work purposes or buying new tools, work boots, or other job-specific clothing."
It added: "Quite simply, they can’t do their job without spending this money."
H&R Block stressed that the following statistics must be considered before altering work-related expenses: