ATO assistant commissioner Karen Foat has now urged taxpayers to reduce claims for work-related expenses in the last quarter of the 2019–20 year that would have been impacted by government-mandated restrictions imposed as a result of COVID-19. 


“With more people working from home, working reduced hours or unfortunately not working at all, we expect to see claims for laundry expenses or travel expenses decline this year,”  


“If you aren’t travelling for work, you can’t claim travel expenses. If you aren’t wearing your work uniform, you can’t claim laundry expenses.


“It’s still important to meet the three golden rules: you must have spent the money and not have been reimbursed, it must relate directly to earning your income, and you must have a record to prove it.”


“Generally, most people cannot claim the cost of travelling to and from work, and working from home as a result of COVID-19 does not change this,” Ms Foat said.


“For example, if you are working from home because of COVID-19 but need to go to your regular office one day per week, your home-to-work travel is still private travel and cannot be claimed.”


In contrast, the ATO expects to see a substantial increase in people claiming deductions for working from home or for protective items required for work.



https://www.accountantsdaily.com.au/tax-compliance/14483-tax-time-2020-ato-flags-work-related-hotspots