Tax time is often a period when people feel they can get creative with what they might claim as a work deduction.
With more people than ever working from home in 2021/22, it may be tempting to add the coffee machine, your online yoga classes, or the biscuits for morning tea on your tax return, but the message from the Tax Commissioner is don’t try it this year.
Although you might have Tim Tams provided when you are in the company staff room at work, that doesn’t mean it is a tax deduction when you are working from home. Likewise – you work from home in your own business and have clients coming to your home office for 100 per cent use of a dedicated cappuccino machine – coffee or the expresso machine is most probably not a kosher deduction. Nor are the track suit pants you have decided to wear as office clothes.
The tax office is well aware that working from home has been a common experience for many people over the past few years, but unless your deductions relate to genuine work use you may risk an audit by the ATO.