Rands Tax & Business Consultants

Small Business Owners and Employees are yet again being reminded to file their tax returns carefully this year, as the ATO looks to limit certain deductions.

When deciding what working from home (WFH) expenses you can claim in the new financial year, CPA Australia suggests that if you think it’s a 𝑦𝑒𝑎ℎ, 𝑛𝑎ℎ, then it’s probably a 𝑛𝑎ℎ.

They advise taking a “yeah-nah” approach to identify the deductions because many of those expenses will be rejected by the Australian Tax Office (ATO).

CPA Australia is trying to help Aussies stay on the right side of the ATO, by issuing a statement from its Resident Tax Expert Elinor Kasapidis outlining the six deductions that will not be accepted this time around.

Here are six examples of “Yeah, Nah” deductions that will not be accepted by the ATO:

  • Doggie Day Care

“You went back to the office, and Rover destroyed the couch, so now he’s in doggie daycare. ” We saw the Instagram post; no, the cost can’t be deducted,”.

  • Your new Work-from-Home Wardrobe 

“Trackie-daks and Ugg boots may be the new black for ‘working from home’ attire, but they are not a ‘uniform’ for tax purposes and therefore it can’t be deducted.”

  • Zoom-Ready Home Decor

“Although your Zoom background is ‘amazing,’ those carefully curated books, plants, and throw rugs aren’t deductible.”

  • That Lovely Chanel Tote Bag (and any other handbags, for that matter)

“Even though your handbag is big enough to hold a laptop, if it’s not required for carrying work items, it’s a firm ‘no’ as a tax deduction.”

  • Wellness Activities

“Just because your workplace offers a hot yoga class on ‘Wellness Fridays,’ that doesn’t mean your downward dog is tax deductible when working from home.”

  • Tim Tams and other 3 P.M Pick Me Ups

“Sometimes everyone needs a Tim Tam or 12 to get through the workday.

“Your boss may provide bikkies at work, but you cannot claim them when working from home.”

Consult a Tax Agent

According to Elinor, there are always exceptions to the rule, but in most cases, it is not you!

“If you still want to argue the point after applying the ‘yeah, nah’ approach, I recommend you run it by your tax agent before putting your head in the mouth of the lion by lodging your return”.

Are you stressed out with your taxes this time? No worries, we’ve got your back!

We are here to help you eliminate fraudulent claims and identify deductions that you are entitled to but weren’t aware of. We will provide hands-on support and guidance to keep you out of trouble with the ATO while ensuring you receive the maximum refund.

Reach out to us on 0434391331 for a consultation or drop a message to Rands Financial Services via https://randstax.com.au/contact-us

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