As technology develops and strengthens, so does the ATO’s scope in finding dodgy deductions. The ATO have recently advised that their data-matching skills have drastically improved over the last couple of years, hence recent warnings issued focused on work related expense claims.
The ATO’s assistant commissioner Kath Anderson has recently informed the public that the ATO will be monitoring the following:
– Higher than expected claims related to motor vehicles, travel, phone, internet and self-education.
– Income that was declared in previous years and not included in this year.
You may wonder how the ATO can assume your claims are higher than expected? Basically the ATO will compare your Income and Expenses various other people/businesses in the same industry as you and compare your circumstances with the average.
What does this all mean to you? All you really need to do is ensure you have sufficient evidence to substantiate the claims you make. As long as you can back up your claims made you will not have any trouble with the ATO.