Every year the Australia Taxation Office releases their hit list. These are the areas the ATO are intending to target in the upcoming tax season. This year, the ATO is focusing on particular types of claims, rather than focusing on professions. This means that most people need to be wary. The ATO‘s priorities this year are: overnight travel, transporting bulky tools and equipment, and the work-related proportion of use for computers, phones or other electronic devices.
One of the major issues that will be put under the microscope this year is tech devices. This includes expenses for computers, phones and other devices. In recent years, individuals have been claiming tax on the full value of their mobile phone, rather than the value that is used to generate income. This is just one area that is going to come under scrutiny. “If taxpayers are claiming work-related expense deductions, they must have spent the money, they must be related to their job and they must have a record to prove it,” says the ATO.
Other ares that are coming under fire are making claims for home office. With more and more people working from home, the ATO is cracking down on incorrect home office deductions.
There will also be a crackdown on incorrectly claiming travel between home and work, as well as work-related expenses such as claiming a travel allowance in full without spending it all.
Another area of attention will be rental property deductions. The ATO believes that first-time landlords often get their claims for rental property deductions incorrect. The ATO has sophisticated technology and processes for checking deductions and identifying excessive claims.
Fortunately, working closely with the team at Fortis Accounting Partners helps to ensure that you are claiming correctly, and won’t have anything to worry about. Please don’t hesitate to get in touch with us if you have any questions or concerns regarding the Australian Taxation Office hit list. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
