Latest news with #ATO
Yahoo
14 hours ago
- Business
- Yahoo
ATO 'looking closely' at common tax return claim six million Aussies make
Do you need to wear a suit to work? Or perhaps you need to wear a uniform emblazoned with your company's logo? Perhaps you work in a clothes shop and have to come to work wearing clothes bought in that store? Whatever the case, you have to conform to your employer's dress policy so there might be an expectation that you'll be treated the same way by the taxman when it comes to claiming tax deductions for your work clothing. If only it was so simple! RELATED ATO $4,400 tax deduction update sparks warning for millions of Aussie workers Top 10 superannuation funds revealed as Aussies receive 'double-digit' returns Compensation sought for millions of Qantas customers hit in major cyber data breach The ATO claims that more than six million people are claiming tax deductions for clothing and laundry, with an unspecified proportion of those claims believed to be bogus. So, with the ATO looking closely at all such claims, now is a good time to consider what you can and can't claim. What clothes can I claim a tax deduction on? You can claim a deduction for the cost of buying and cleaning: occupation-specific clothing protective and unique clothing (ie, not everyday wear) clothing that allows the public to easily recognise your occupation – such as the checked trousers a chef wears distinctive uniforms clothing and footwear that you wear to protect yourself from the risk of illness or injury posed by your job or the environment in which you do your job. To be considered protective, the items must provide a sufficient degree of protection against that risk, and might include: fire-resistant and sun-protection clothing (including sunglasses) hi-vis vests non-slip nurse's shoes rubber boots for concreters steel-capped boots, gloves, overalls, and heavy-duty shirts and trousers overalls, smocks and aprons you wear to avoid damage or soiling to your ordinary clothes whilst at work. What can't I claim tax deductions on? You can't claim the cost of purchasing or cleaning clothes you bought to wear for work that are not specific to your occupation, such as a bartender's black trousers and white shirt, or a business suit. Bad news for office workers! If you work in a clothing store, you also can't claim the cost of clothing you purchased in that store, even if you're required to wear it to work, since those items of clothing are not specific to your occupation (you could also wear them outside work, on a Saturday night out for instance). Ordinary clothes (such as jeans, shirts, shorts, trousers, socks, closed shoes) are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. To take the example of closed shoes, you may seek to argue that such shoes provide a level of protection for your feet from work-place hazards but unless that protection is something specific, over-and-above a general level of foot protection, you're not going to be able to claim a deduction. Compulsory work uniform You can generally claim a deduction for the cost of a compulsory work uniform, provided that you bear the cost and aren't reimbursed by your employer. This is a set of clothing that identifies you as an employee of an organisation. It is compulsory for you to wear the uniform while you're at work and there is a strictly enforced policy ensuring that this happens. Typical occupations where a compulsory uniform is required include police officers, nurses, military personnel, airline staff and supermarket staff. You may be able to claim a deduction for shoes, socks and stockings where they are an essential part of a distinctive compulsory uniform and where their characteristics (colour, style and type) are specified in your employer's uniform policy (as is sometimes the case with air stewardesses and nurses, for instance). You may be able to claim for a single item of distinctive clothing, such as a jumper, if it's compulsory for you to wear it at work. Non-compulsory work uniform You can claim for a non-compulsory uniform provided it is unique and distinctive to the organisation you work for. Clothing is unique if it has been designed and made only for your employer. Clothing is distinctive if it has your employer's logo permanently attached and the clothing is not available to the public. You can't claim the cost of purchasing or cleaning a plain uniform (for example, a generic white shirt and pair of black trousers, as worn by many wait staff). Non-compulsory work uniforms must usually have a design registered with AusIndustry in order to be tax deductible. Shoes, socks and stockings can never form part of a non-compulsory work uniform, and neither can a single item such as a jumper. Cleaning of work clothing You can claim the costs of washing, drying and ironing eligible work clothes, or having them dry-cleaned. If the total amount of your laundry expenses are $150 or less and your total work-related expenses are $300 or less, you don't need to provide written evidence for your laundry expenses. Instead, for washing, drying and ironing you do yourself, the ATO allows you to use the following amounts to work out your laundry claim: $1 per load - this includes washing, drying and ironing - if the load is made up only of work-related clothing, and 50 cents per load if other laundry items are included.
Yahoo
2 days ago
- Business
- Yahoo
Reason Aussies are being hit with shock ATO tax bills: ‘Same problem'
Many Australians have been left blindsided after lodging their tax returns and finding that, rather than getting a refund, they actually owe money to the Australian Taxation Office (ATO). An Australian tax accountant said many workers were running into the 'same problem' due to the way the payroll system works. Australians have flooded social media to share the outcome of their 2025 tax returns since the start of the new financial year. While some have been 'boasting' about their hefty tax refunds, others have shared their shock at being hit with a tax bill. Tax Invest Accounting director Belinda Raso told Yahoo Finance she was seeing more people getting tax bills because they worked multiple jobs and no longer had the 'buffer' of the $1,500 low and middle income tax offset, which ended on June 30, 2022. RELATED ATO tax return warning for 2 million Aussies over dangerous act Coles and Costco grocery price comparison 'shocks' Aussie mum Compensation sought for millions of Qantas customers hit in major cyber data breach 'The way our payroll system works is even if you do the right thing and you tick not to claim the tax-free threshold on your second job, that [job] is not withheld at enough,' she said. If you earned more than $45,000 in your first job, for example, you would already be in the 32 per cent tax bracket, including the 2 per cent Medicare Levy. 'When you tell your [second] employer not to claim the tax-free threshold, you're actually going straight onto that first tax bracket, which is 16 per cent plus 2 per cent Medicare levy,' Raso said. 'But if your first job is already $45,000, you need to be paying it at 30 per cent plus 2 per cent, so you are down 14 per cent and this is where people are getting tax bills.' Raso said Aussies in this position should either ask their employer to withhold the additional tax, put it away themselves during the year, or not claim the tax-free threshold on their main job. Otherwise, it's likely to happen again this year. There were 963,100 multiple job-holders in March this year, the latest ABS data found, representing 6.5 per cent of all employed people. Raso said she thinks changes to the payroll system would mean "less disgruntled Aussies" who end up with a tax debt, despite thinking they are doing the right debts can be a factor If you have a HECS-HELP debt, Raso said you'll need to let your employer know about it, or you could end up with a tax debt. If you have reportable fringe benefits or salary sacrifice, this could also be a reason you get a tax debt. That's because HECS repayments are calculated with salary sacrifice added back in and reportable fringe benefits are 'grossed up'. If you work multiple jobs, your combined income may also be enough to push you over the HECS repayment threshold and mean you get a tax debt. The threshold for the 2025 financial year was $54,435. 'If you have two employers, and if you don't reach that HELP debt limit, even though they know you've got a HELP debt, it won't come out of your pay,' Raso said. 'But then, added together, both of them will get you over that threshold and you will end up with the tax debt.' Other reasons you could get a tax debt Raso said the Medicare Levy Surcharge can be another reason you receive a tax debt. Your employer withholds the Medicare Levy, but not the surcharge. For the 2025 financial year, the surcharge applies to singles earning $101,001 or more and families earning $202,001 or more who don't have hospital health insurance cover. You can also get a tax bill if you earned other income during the year. That could include from side hustles, bank interest, investments, rentals and capital gains tax. What do I do if I have a tax bill? If you receive a tax bill, you need to pay it by the due date on your Notice of Assessment. If you can't pay on time, you can ask the ATO to set up a payment plan and break your bill down into smaller amounts. If you have an outstanding amount owing to the ATO after the due date, you will be charged a general interest charge. It is currently 10.78 per cent annually and compounds daily, even if you are on a payment plan.
Perth Now
2 days ago
- Business
- Perth Now
Aussies hilariously slam ATO's ‘joke' tax return demands
It's that time of year when tax accountants are at their busiest, and income earners their most inconvenienced. As Aussies slowly get around to lodging their tax returns, the Australian Taxation Office's Facebook account — yes, they're on social media — has attempted to remind Aussies that they're legally required to lodge every last dollar raked in from the previous financial year. But unsurprisingly, it hasn't gone down so well with the working man. 'Make sure you report all extra income you earned this year!' a post from the ATO on Tuesday read, which has since disabled further comments. Here are some of the funniest responses: 'What about my daughter's lemonade stall?' one person asked. Another said, 'What's the point of cash in hand, if we just gonna tell you about it'. 'Every smart**** here is getting audited,' one person wrote. The account sought to define exactly what 'extra $$$' referred to. Cash-in-hand work, online activities, and interest on investments were among the key income-earning streams that Aussies 'need to report in your tax return!' 'Love how OnlyFans is described as 'online activities' haha,' one person said in response. 'Construction workers, barbers laughing, contractors laughing at this joke,' another chimed in. 'Why?? My marketplace selling is just a hobby!!!' one added. 'Will I be audited if I pick up a 10c off the ground and don't declare it?,' asked another. Aussies are not so keen on the ATO reminding them to lodge all extra income earned during the previous financial year. Credit: ATO / FB What about pokie winnings? The page confirmed, 'You don't need to declare your gambling winnings as income. You'll only need to declare your gambling winnings or losses as income if you're a professional gambler carrying out a business of betting or gambling.' Tips earned through hospitality? Unfortunately... 'Yes, cash tips that you receive, regardless of whether from your employer or direct from customers, must be declared,' the ATO stated. While many of the account's 327k followers said they'd been waiting up to two weeks to receive their refunds, others suggested the ATO should spend less time monitoring the little guy. 'Your main focus should be on big businesses, those who don't pay a single penny,' one person wrote. Another inquisitive income earner, tongue-in-cheek of course, asked the ATO exactly how it would go about proving someone didn't declare all of their additional earnings. 'How do you plan on proving that I didn't? Hypothetically', they asked. For more tips on lodging your tax return, head to For more laughs, head here.
Yahoo
2 days ago
- Business
- Yahoo
Earnings Preview: What to Expect From Atmos Energy's Report
Valued at $24.6 billion by market cap, Atmos Energy Corporation (ATO) is one of the largest fully regulated natural gas-only utilities in the U.S., serving over 3.3 million customers across eight states through its distribution and pipeline & storage segments. The Dallas, Texas-based company operates more than 79,000 miles of distribution pipelines and over 5,700 miles of transmission pipelines, along with several underground storage facilities. ATO is set to deliver its third-quarter results after the markets close on Wednesday, Aug. 6. Ahead of the event, analysts expect the utility giant to report an adjusted EPS of $1.19, up 10.2% from $1.08 reported in the year-ago quarter. Moreover, the company has surpassed the Street's bottom-line expectations in each of the past four quarters, which is admirab. More News from Barchart Insider Trading Alert: Here's Who Bought Nvidia and AMD Stock Before the U.S. Chip Deal with China Dear Tesla Stock Fans, Mark Your Calendars for July 23 As QuantumScape Hits New 2025 Highs, Should You Buy, Sell, or Hold QS Stock? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the current year, ATO is expected to report an adjusted EPS of $7.25, marking a 6.2% increase from $6.83 reported in fiscal 2024. ATO shares have soared 24.6% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 12.7% returns and the Utility Select Sector SPDR Fund's (XLU) 17.5% gains during the same time frame. On May 7, ATO shares rose marginally after reporting its Q2 results. Its revenue rose 18.4% year-over-year to $1.95 billion and net income stood at $486 million, driving EPS up to $3.03. Additionally, both its Distribution and Pipeline & Storage segments saw solid growth, while capital expenditures totaled $839.7 million for the quarter, focused primarily on safety and system reliability. Atmos also raised its full-year EPS guidance to $7.20–$7.30 and increased its dividend by 8.1%, reflecting continued operational momentum and regulatory success. The consensus view on ATO stock remains moderately optimistic, with a 'Moderate Buy' rating overall. Of the 14 analysts covering the stock, opinions include six 'Strong Buys,' one 'Moderate Buy,' and seven 'Holds.' ATO's mean price target of $160.82 indicates a 3.6% upswing from the current market prices. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Perth Now
2 days ago
- Politics
- Perth Now
Taxman told to tone it down and cut jargon from letters
Lodging a tax return is stressful enough without receiving jargon-filled letters, says an ombudsman telling the taxman to watch their tone. The Australian Taxation Office sends more than 140 million letters and messages to Australians each year, using almost 3000 correspondence templates. But a Tax Ombudsman review examining six commonly used templates found many people still find some of the letters confusing or too technical, and their tone can cause unnecessary stress and anxiety. "We've all received a letter from the ATO at some point and wondered what on earth it was about," Tax Ombudsman Ruth Owen said. "The ATO focuses on what it wants to say, not what the taxpayer needs to know, without thinking about how the letter will be read or interpreted." Ms Owen noted the direct language used "can sometimes seem threatening and imply guilt or assign blame to the reader". The report referred to a 2023 campaign where the ATO wrote to recipients about historical debts, whose tone independent federal MP Andrew Wilkie described as having "more than a whiff of Robodebt". The ATO was ultimately forced to pause the campaign. She explained that the sampling of letters examined found the ATO assumes the reader has good technical tax knowledge, proficiency in English and understands all the terms being used. The 44-page report, which drew on the analytical skills of a plain language expert, also concluded the ATO's letters lacked empathy for the reader in some circumstances. Some of the ATO letters exhibited "lengthy, complex sentence structures and illustrated how they reduce readability", the expert said. The ombudsman added the letters could be couched in language and terms that could better support culturally and linguistically diverse audiences, First Nations people and people living with disability. The extensive examination also found letters were not always going to the right taxpayer. It recommended the office could better work with taxpayers and tax agents to ensure letters were sent to the right address. The ATO accepted all four recommendations by the ombudsman to improve its letter writing.
