You Could Lose $20K in a Decade Just by Tossing Your Receipts

New data has revealed that nearly 30 per cent of Australians lose their receipts, and it could be costing them thousands. With tech, furniture, and even stationery all claimable during tax season, that small slip of paper could be worth up to $20,000 in lost claims over a decade.

The research, commissioned by Officeworks, shows that although many Australians want to claim everything they’re entitled to, tax-time confusion is widespread. Nearly half (47%) mistakenly believe they can use the ATO’s shortcut method and still claim individual working from home expenses. Over 40% think they can claim up to $300 without making actual purchases. More than a third incorrectly assume commuting from home to work is deductible.

According to financial adviser Ben Nash, founder of Pivot Wealth, these common misconceptions can be costly.

One of the biggest mistakes people make is assuming they can claim things just because it’s the end of financial year, Nash said.

“You need to have actually incurred an additional expense, and it must relate directly to earning your income.”

He also warned that poor record keeping leads many Australians to miss out on valid deductions. In fact, 32% admit to missing claims in past years, either due to confusion or disorganized receipts.

That’s real money left on the table, Nash added. People should be using digital tools to help, or consult a tax professional if unsure.

Even the ATO is seeing questionable deduction attempts. One truck driver tried to claim swimwear as a work expense because it was hot where they stopped.

ATO Assistant Commissioner Rob Thomson was clear. While a lunchtime dip might clear your head, swimwear for a truck driver is clearly not deductible. If your deductions don’t pass the pub test, they probably won’t pass with us either.

In today’s digital age, some Australians are turning to AI tools like ChatGPT to decode their tax options. According to software company Xero. 7% used AI tools, like ChatGPT, 5% followed social media influencers for tax advice, Over 51% said they’re confused about deduction rules, Nearly 1 in 5 admitted they had claimed something they weren’t sure about

Xero’s managing director, Angad Soin, added that half of those who made a deduction-related purchase last year were disappointed either it didn’t result in the return they hoped for, was ineligible, or led to amended tax returns.

If you’re filing taxes this year, keep your receipts, know the rules, and don’t rely on myths. A little record keeping could save you thousands.

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