Work-Related Deductions Denied
AAT Rejects Taxpayer’s Expense Claims
Lack of evidence and use of company vehicles led the AAT to disallow nearly $10,000 in work-related deductions for a traffic controller.
In a recent decision, a taxpayer’s claims for various work-related expenses were rejected by the AAT.
The taxpayer was employed as a traffic controller in the 2020 income year. In his income tax return for that year he claimed $9,800 in work-related deductions, including for car expenses (using the cents per km method), travel expenses, clothing expenses and self-education expenses, as well as supplemental deductions.
The ATO disallowed all of the deductions, and the taxpayer then appealed to the AAT.
The AAT agreed that all of the taxpayer’s claims for work-related expenses should be disallowed, largely because the taxpayer failed to substantiate these expenses, whether by way of receipts/bank statements or any other form of evidence.
Also, in relation to the claim for car expenses, the AAT noted that the taxpayer had been using company vehicles at least some of the time.
The AAT also noted that there had generally been “no attempt to apportion work use against private use. . . Even if I could satisfy myself of some apportionment, the amount would likely be so insignificant that it would not result in any real deduction in taxable income.”
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