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!