Aussies set to lose thousands in major tax crack down
One of Australia’s leading tax experts says the closure of a major tax loophole could see Australians claiming thousands of dollars less on their tax returns.
Some may even be forced to pay back deductions from previous years.
Head of Policy at CPA Australia, Paul Drum, told 3AW Breakfast incorrect tax deductions for work related car use are putting many Australians on a collision course with the ATO.
“There’s going to be a lot of please explain letters from the tax office this year, possibly relating to last year too,” he said.
The latest ATO data suggests almost 25% of taxpayers claim car deductions they’re not entitled to, many claiming the $3300 you can claim without a logbook.
“People can claim up to 5000km travel without a log book,” Paul said.
“What the tax office is seeing, is what they would call bunching, i.e. a lot of people are claiming 5000 exactly and that shows up on their computers as being odd.”
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