ATO Detects Over $53 Million Worth Of Tax Time Errors

The Australian public has lodged nearly six million tax returns already this year, with over $11.9 billion in refunds processed, which is $270 million more compared with the same time period last year.

According to ATO commissioner Kath Anderson, the Tax Office had to correct more than 112,000 tax returns, totalling more than $53 million.

“Our investment in advanced analytics is allowing us to closely scrutinise more returns than ever before, and make immediate adjustments where taxpayers have made a mistake. In the first half of tax time, the ATO’s analytics and compliance models automatically adjusted more than 112,000 tax returns to correct mistakes in returns, totalling more than $53 million,” said Ms Anderson.

Some common mistakes made by taxpayers include claiming deductions on haircuts, grooming or fitness expenses, when these costs do not directly relate to the individuals line of work.

It had been noted by the ATO that Flight attendants frequently make errors in their returns. Those in the flying industry can claim overnight travel costs where they have not been reimbursed but cannot claim a deduction for things like hairdressing, cosmetics, and hair and skin care products.

There are often mistakes in the building and construction industry as well. These workers cannot claim clothes or shoes that are not uniforms or are not designed to provide you with sufficient protection from the risk of injury at your worksite, even if the item is called ‘workwear’ or ‘tradie wear’ by the supplier.

With the ATO becoming stricter than ever, it is vital that individuals are lodging their tax returns correctly.

If you would like a tax professional to assist with your return, please contact Paris Financial at (03) 8393 1000.

Emily Kermac, Partner, Paris Financial