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Work-from-home tax deductions top of mind as ATO cracks down

New research from cloud-based tax software TaxTank reveals that 50% of Gen X’s, 40% of Millennials, and 30% of Baby Boomers intend on claiming work-from-home (WFH) expenses this tax year.

The findings coincide with a recent statement from the ATO saying it would scrutinise WFH expenses this tax year with millions of Australians having pivoted to remote and hybrid work environments due to COVID-19.

From home office furniture to furniture degradation, computer screens, internet and even cleaning products and toilet paper, there are various home items which can be proportionally claimed as WFH expenses – but knowing precisely how much or how little can be difficult to determine.

Commenting on the research, TaxTank founder Nicole Kelly, said “The massive shift we have seen in the move to work-from-home has blurred the lines between personal and business expenses. This has made tax time for many Australians even more complicated and stressful, and it’s unsurprising that the research shows over half of Australian taxpayers are worried about missing a deduction”.

While over 54% of Australian taxpayers stated they were not confident they were claiming every possible deduction, one in five (19%) said they were certain of missed deductions. Just 10% stated they were confident of claiming every deduction.

The Australian individual tax return is one of the most extensive and complex in the world, enforced by an advanced compliance program which sees over 20+ computer models scrutinising every return to detect abnormalities. In 2020 alone, there were 468,000 adjustments arising from tax audits, resulting in a total revenue gain of $13.7 billion.

“Knowing how to substantiate your claims is essential to maximising your tax return. We see so many people missing out because they’re intimidated by the ATO, and we want to empower everyday Australians with the knowledge to lodge their return accurately,” comments Nicole.

With such a high proportion of Australians looking to claim WFH expenses this year, tax confidence will become more important than ever as the ATO looks even closer at these expense claims that are becoming part of the ‘new normal’.

About the survey

The survey was commissioned by TaxTank and undertaken by Pureprofile to analyse habits of individual Australian taxpayers ahead of the 2022 tax season. Their attitudes towards managing their taxes, sentiment towards the Australian tax system and spending intentions was also analysed. From 29 April – 4 May 2022, Pureprofile conducted an online quantitative survey, interviewing 1000 Australian taxpayers. The survey is nationally representative.


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For all incomes earned between 01 July 2023 – 30 June 2024.  

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Tax returns are OVERDUE.  

You can use TaxTank to get up to date and lodge with our partner accountants.

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