Work expense claims are set to be cracked down on by the Government following $22 billion worth of claims in 2017, of which $2.5 billion is said to be from dodgy claims.

The Australian Taxation Office will provide the Treasury advice relating to potential policy changes that would limit the tax deductions available.

The ATO has previously announced targeting deductions relating to cars, travel, clothing and mobile phones and is now targeting the internet and phone bills.

The ATO estimates the $2.5 billion cost of dodgy deductions is similar to the revenue lost each year through multinational tax avoidance.