The Australian Taxation Office (ATO) has sent warning emails to more than 500,000 Australians who previously claimed work-related car expense deductions.

The alerts remind taxpayers to ensure every claim is accurate and supported by proper records before lodging this year’s tax return.

The ATO says it is closely monitoring incorrect or exaggerated deductions and is using advanced data matching and artificial intelligence to detect suspicious claims.

Officials stressed that taxpayers should only claim expenses directly related to earning their income and keep evidence such as logbooks and receipts.

The tax office also warned that inaccurate claims could lead to adjustments, audits, or financial penalties.

With tax season underway, Australians are being urged to double-check their deductions and lodge accurate returns to avoid unnecessary problems.