Claiming Work-Related Expenses Without Triggering an ATO Audit

Gotax Publishing – 9 October 2025

Everyone Wants Bigger Deductions—But the ATO Is Watching

We all want to claim more tax deductions. But here’s the catch: the ATO has powerful data-matching systems that flag dodgy claims in seconds. If your tax expenses look inflated, inconsistent, or unsupported, you could be staring down an audit.

The good news? You can still claim everything you’re entitled to—if you do it the right way. At Gotax, we help you maximise your refund while keeping you safe from ATO scrutiny.

What Counts as a Work-Related Expense?

The ATO has three golden rules:

• The expense must be directly related to earning your income
• You must have spent the money yourself (and not been reimbursed)
• You must have a record to prove it

If you can’t tick all three boxes, don’t claim it.

Common Deductions That Raise Red Flags

Car Expenses

• Claiming the cents per kilometre method without a logbook is fine—but the ATO knows the average for your job.
• Claiming thousands without proof? That’s a red flag.

Home Office Expenses

• The fixed rate method (67c/hour) is simple and safe.
• The actual cost method can give bigger claims—but only if you’ve got detailed records.

Travel Expenses

• Overnight trips for work are deductible.
• Daily commuting? Not deductible.

Self-Education Costs

• Only deductible if the course relates directly to your current job.
• A career-change course? Not deductible.

Clothing and Uniforms

• Protective gear and branded uniforms are deductible.
• Plain clothes (even if you only wear them to work) are not.

How the ATO Detects Incorrect Claims

The ATO uses:

• Data matching with employers and banks
• Industry benchmarks to compare your claims with similar workers
• AI anomaly detection to flag unusual patterns

If your claims don’t stack up, expect a “please explain.”

How to Claim Safely

• Keep receipts (digital copies are fine)
• Use logbooks for car expenses
• Track hours for home office claims
• Don’t copy last year’s claims blindly
• Use Gotax’s deduction prompts to stay compliant

Real-World Example

Sam, an IT worker, claimed $3,500 in car expenses without a logbook. The ATO flagged it instantly. His refund was delayed, and he had to repay part of his claim.

Gotax would’ve prompted Sam for a logbook—or adjusted his claim to keep him safe.

How Gotax Protects You

• Smart Deduction Finder – prompts you for eligible expenses
• ATO-Compliant Checks – flags risky claims before you lodge
• Secure Record Storage – receipts and logs stored safely
• Real Aussie Experts – Gotax isn’t just software, we’ve got tax pros ready to help

Claim with confidence. Gotax helps you maximise your refund—without risking an audit.

FAQs

What happens if the ATO audits me?
They’ll ask for receipts and records. If you can’t provide them, your claim may be denied.

Can I claim work clothes without a logo?
No. Only protective gear or branded uniforms are deductible.

Do I need receipts for everything?
Yes. The ATO can ask for proof of any claim.

How far back can the ATO audit?
Generally up to 2 years, but longer if they suspect deliberate errors.

Does Gotax help if I get audited?
Yes. We provide records, guidance, and support to resolve it quickly.

Final Thoughts: Bigger Refunds, Zero Stress

Claiming work-related expenses is your right. But doing it wrong can cost you more than you gain. Gotax makes it easy to claim every dollar you’re entitled to—without triggering an audit.

Lodge smarter. Claim safer. Use Gotax.

This blog is an information source only. Make sure you seek professional advice, like Gotax, before you act on its contents.