The Australian Taxation Office list of occupations targeted for audit activity for this tax year includes carpenters and joiners.
Every year the Tax Office selects some occupations that they plan to target in relation to work related expenses claims.
This year the occupation targets are:
- Earthmoving plant operators
- Flight attendants
- Carpenters and joiners, including apprentices and trainees
- Real estate employees.
The ATO’s campaign activity includes writing letters to taxpayers whose claims are at the upper level of average for that occupation; taxpayers whose claims have increased significantly in the past few years; and it may require the taxpayer to complete work related expense information sheets on lodging the tax return.
The Tax Office will pay close attention to their claims for using cars and travel expenses as well as deductions for home office, mobile phone and internet expenses.
H&R Block Regional Director, Frank Brass, commented: “The critical response is not to panic. Every year some individuals in occupations targeted by the ATO freeze-up and become over-cautious in making their claims. The best approach is to get your paperwork in order and make a full and genuine claim for your entitlements.”
The main areas of review will be:
- Not having sufficient documentation to support motor vehicle and travel expenses
- Incorrectly claiming motor vehicle expenses on the basis of carrying bulky equipment, and
- Incorrectly claiming home office, mobile phone and internet expenses.
