The ATO is now encouraging taxpayers to do away with submitting information manually, and says the new myDeductions tool has been designed to make it easier for taxpayers to record their work-related expenses and to store and track all work-related expenses throughout the year on their smartphone or device.
With the new online facility, individuals can upload their completed deductions from myDeductions directly to the ATO and the tax return will be pre-filled. Information can also be shared with tax agents and accountants via email.
Assistant commissioner Graham Whyte said the tool would “reduce the headache” for taxpayers trying to remember what expenses they can claim at tax time.
“Typically, more than eight million Australians claim over $20 billion in work-related expenses on their tax return. That's a lot of receipts to keep track of throughout the financial year.”
Whyte says that by using myDeductions, users will never miss claiming a deduction because of a lost or faded receipt again – “everything can be stored electronically. Gone are the days of keeping all of your receipts in a shoebox and sorting through them at tax time”.
He said many individuals might be missing out on deductions due to lost or damaged receipts, or in some cases just not knowing what they’re entitled to claim.
“We want to help inform and educate taxpayers on what work-related expenses they are entitled to claim.
“Anyone claiming work-related expenses just needs to remember the 'Three Golden Rules'. Firstly, you must’ve spent the money yourself and you can’t have received a reimbursement.
“Secondly, the expense must be related to your work. Finally, you must have a record to prove it.”
For more information about what work-related expenses can or can’t be claimed, click here.
And, the ATO has developed a quiz for taxpayers to test their knowledge about when they can and can't claim, so to test yourself click here.
The myDeductions tool can be downloaded for Apple, Android or Windows devices.