About 26,500 Australians warned by ATO over unusual work deduction claims
The ATO sent warning letters to about 26,500 people whose work deduction claims appeared unusually high compared to similar taxpayers.
After tax returns poured in from July 1, the ATO's data analysis picked out about 26,500 Australians whose work-related deductions looked unusual. The tax office compares each claim against others in similar jobs and income brackets.
The tax office flags anything that stands out. If the ATO sees your claim as outside the normal range, it will ask you to review your deductions.
In serious cases, it requests specific evidence. Mark Chapman is the tax director at H&R Block.
He says people shouldn't panic but should be ready to back up everything they claimed. He warns the ATO's comparison system struggles with individual circumstances.
Two people in the same job can have vastly different deductible expenses depending on where and how they work.
- 26,500
- People warned
- Mark Chapman, H&R Block
- Tax director
- Comparison to similar taxpayers
- Assessment basis
Why it mattersIf you get a letter, you need receipts and evidence for every deduction you claimed.
AustraliaAustralian taxpayers receiving warning letters should gather evidence for all work-related deductions they claimed to avoid penalties or demands for repayment.
Corroborated bynews.com.au
✓ Claims checked against the source. checked 41 min ago
