Expect changes in client 2019–20 tax return claims due to natural disasters and COVID-19

As a result of the impacts of natural disasters and COVID-19, the ATO anticipates changes to what people claim in their 2019–20 tax return. This is an opportune time to review your clients’ claims to ensure they are applicable in the current financial year including accounting for variations when working out your clients’ deductible expenses.

The ATO expects to see an overall reduction in work-related car, travel and clothing expenses across many industries. If your client’s usual pattern of work changes during the year due to COVID-19 or other circumstances, they may need to complete an additional record for the period their work pattern changed, especially where claims are calculated using representative periods.