In the most recent update from the ATO, corporate Australia had a $1.8 billion tax gap. Individuals represented a staggering $8.7 billion tax gap, with 'work-related' expenses to blame.

The ATO is committed to narrowing that gap and will closely monitor the items you intend to claim.

Individual work-related expenses don’t tend to add up to much. It’s when you multiply it by a population of 24 million that it all adds up.

The following items are on the ATO’s watch list this year:

  • Claims for work-related clothing

  • Deductions for home office use

  •  Overtime meals claim

  • Union fees and subscriptions

  • Mobile phone and internet costs

  • Motor vehicle claims where taxpayers take advantage of the 68 cent per km flat rate for up to 5,000km

  • $300 dollar or less deductions without receipts

Last year, other items such as unexplained wealth, cash-only businesses and unpaid superannuation were also matters of priority for the Tax Office.