The Australian Taxation Office is scrambling to close a tax loophole after an Administrative Appeals Tribunal decision that it fears could cost taxpayers billions of dollars.

Click PLAY to hear the loophole.

Dale Boccabella, Australian School of Business at the University of NSW, told Perth Live host Oliver Peterson that the ruling means Australian renters could claim thousands of dollars in tax deductions for working from home.

“I don’t want to be critical of the ATO ruling in this area but it’s over 30 years old it really does need modernising,” he said.

Hear more highlights from Perth Live below and download the 6PR app on iOS or Android to ensure you don’t miss a thing!

Image: iStock