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A standard deduction for work-related expenses should be examined with a view to eradicating the need for millions of Australians to lodge tax returns, the nation’s tax watchdog has recommended.
Key points:
- A review by the tax watchdog into the future of the tax profession suggests a standard tax deduction could make things simpler
- ATO random audits were revealing higher instances of overclaiming and incorrect claims among tax professionals
- The review recommends the ATO review its arrangements for identifying and responding to cyber security risks
The Inspector-General of Taxation’s (IGT) review into the Future of the Tax Profession said such a move would make it easier for millions of Australians who claim billions of dollars in work-related expense deductions each year.
ATO Taxation Statistics show that in 2016-17 there were more than 8.84 million people claiming $21.98 billion in work-related expense deductions.
The IGT has also raised concerns that the Australian Taxation Office’s current online tools aimed at nudging taxpayers to amend their returns if they are out…
