Every year, the ATO picks 2-3 areas that it’s targeting with a laser focus for income tax, and it’s a good idea to be aware of these areas when you lodge your tax.

Last year, it was work-related expenses. This year, it’s work-related expenses again, followed by property-related tax deductions.

For work-related expenses, the ATO will be targeting the following:

  • Claims for work-related clothing
  • Deductions for home office use
  • Overtime meal claims
  • Union fees and subscriptions
  • Mobile phone and internet costs
  • Motor vehicle claims
  • $300 or less deductions without receipts

For property-related tax deductions, the ATO will be making a note of:

  • Excessive interest expense claims
  • Incorrect apportionment of rental income and expenses
  • Holiday homes that aren’t really being rented out
  • Incorrect claims for newly purchased property

A couple other areas that the ATO will be looking at as secondary areas of focus or cryptocurrency and expenses from sharing economy jobs.

It’s a bit of a minefield this year, so it’s worth booking in with Colby Business Services to make sure your tax return doesn’t end up in the ATO’s crosshairs!