ATO will target false work-related expense claims

Here’s a tip for tax time: be sure about your work-related expenses.

Especially get your clothing and laundry receipts in place, because this year, false claims are being targeted.

In 2018, around six million Australians claimed work related clothing and laundry expenses of nearly $1.5 billion.


So this year, the Australian Taxation Office has vowed to ‘iron out’ false laundry claims.

Assistant Commissioner Karen Foat said while taxpayers can claim the expense, it’s unlikely that around half of us have to wear uniforms or protective clothing to earn our income.

“You must have spent the money you are claiming on buying or cleaning eligible clothes.

“While you don’t need receipts for claims up to $150, we can ask how you calculated your claim.

“We may even ask your employer if you have a required uniform.

“Last year a quarter of all clothing and laundry claims were exactly at the record-keeping limit.

“But don’t think that we won’t scrutinise a claim because we don’t require receipts,” Ms Foat said.

The ATO says they’re also concerned about the number of people claiming deductions for ‘conventional clothing’, as in clothing that they’ve bought because they boss told them to wear a certain colour.

So you better watch out on the claims this year, because the ATO could be coming for you.

“We don’t ignore incorrect claims just because they are small, because small amounts add up.

“No matter how small, it’s not ok to expect other Australians to pay for your dodgy claims.

“The ATO will be taking strong action this tax time to protect honest taxpayers who are claiming the right amount – no more and no less,” Ms Foat said.

For more information about work-related expenses, click here.