You have 0 free articles left this month.
Register for a free account to access unlimited free content.
Powered by MOMENTUM MEDIA
accountants daily logo

Budget silent on deductions for work-related expenses

Tax

Despite speculation around a standard tax deduction being introduced for work-related expenses, no announcement was made in the budget, says Thomson Reuters.

By Miranda Brownlee 9 minute read

In its 2018 Federal Budget Report, Thomson Reuters said discussion around allowing individual taxpayers a standard tax deduction for work-related expenses (WRE) has been around for many years.

There was speculation it would appear in the budget this year, the report said, in light of the ATO’s comments that work-related tax deductions were being over-claimed.

“Calls for a standard deduction are not new and have been around for a number of years, most notably recommended by the Henry Tax Review in 2010, however, there was no announcement in this year's 2018-19 federal budget,” said the report.

In November 2016, the Treasurer asked the House of Representatives standing committee on economics to inquire into and report on tax deductibility, specifically on the deductibility of expenditure by individuals in earning assessable income and deductibility of interest.

The committee heard that during the 2015 year, nearly $22 billion in work-related tax deductions were claimed.

These claims have increased by 21 per cent over the past five years, and in its submission to the inquiry, the ATO expressed concern about the level of non-compliance in relation to work-related expenses, the report stated.

==
==

“Overall, any steps to help minimise tax compliance complexity and cost would be welcome, but of course, revenue implications would have to be factored in,” said the report.

Governments have tantalised taxpayers with the prospect of a standard tax deduction for work-related expenses. It’s long been recognised as an important element towards a system of pre-filled tax returns — maybe for another time.”

Miranda Brownlee

Miranda Brownlee

AUTHOR

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on:miranda.brownlee@momentummedia.com.au
You are not authorised to post comments.

Comments will undergo moderation before they get published.

accountants daily logo Newsletter

Receive breaking news directly to your inbox each day.

SUBSCRIBE NOW