What’s the ATO cracking down on this year?

Written by Jenneth Orantia

Jenneth has more than 20 years of experience in media and communications. She provides guidance to small businesses looking to acquire new customers using owned, earned, paid and social channels. She is currently completing a Masters of Marketing degree.

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19 August 2019

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!