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As we gear up for another tax season, it’s important to stay informed about what the Australian Taxation Office (ATO) is focusing on this year.

Understanding these priority areas can help you prepare better and avoid any unnecessary complications.

 

  1. Work-related expenses

This year, the ATO is taking a closer look at work-related expense claims.

With many of us switching between working from home and the office, the guidelines around what you can claim have become stricter.

So, make sure that you keep clear, detailed records and receipts for all your claimed expenses, such as home office costs, professional subscriptions, and equipment necessary for your job. If it’s not directly related to earning your income, don’t claim it.

 

  1. Rental property deductions

Rental property deductions are also under the spotlight.

The ATO is keeping an eye out for high or unrealistic interest claims and the incorrect classification of property expenses. It’s important to distinguish between immediate deductions for repairs and depreciated improvements.

As always, keeping good records is your best defence, proving that your claims are legitimate and necessary.

 

  1. Accurate income reporting

Ensuring that all income is reported correctly remains a top priority.

This includes not just your main salary but also any additional income from side gigs or investments. The ATO’s advanced data-matching technology makes it easier for them to spot any discrepancies. Make sure every dollar earned is accounted for on your tax return.

 

  1. Preparation is key

To minimize errors, it’s wise to wait until all your income data is pre-filled before submitting your tax return. This typically happens by late July. Filing too early can lead to mistakes if not all your income data has been reported to the ATO.

Ensure you can satisfy the three golden rules before making claims:

  1. You must have spent the money yourself and weren’t reimbursed
  2. If the expense is for a mix of income producing and private use, you can only claim the portion that relates to producing income
  3. You must have a record to prove it

 

Seek professional advice

If you’re unsure about your tax situation or how to optimally structure your claims, it’s worth consulting with a professional like Accounting Excellence.

We can provide valuable guidance and peace of mind, helping you to navigate tax regulations confidently and efficiently.

Want to navigate tax time with confidence? Get in touch to see how Accounting Excellence can save you time, money and stress by emailing info@accountingexcellence.com.au or calling 0431 981 005.