<\/p>\n
This tax time, the ATO will focus on areas where taxpayers are likely to make errors including work-related deductions and expenses, and omitted income.<\/p>\n
Aussies chasing bigger refunds warned they could be in trouble this EOFY as \u2018too good to be true\u2019 tax hacks explode online, with investors and side hustlers in the firing line.<\/p>\n
The Australian Taxation Office has sounded a warning just weeks out from the end of the financial year, warning rental income, cash jobs, work-related deductions and online side gigs were all under scrutiny.<\/p>\n
<\/p>\n
ATO Assistant Commissioner Anita Challen warned Aussies to think twice before acting on information from third-party sources like AI.<\/p>\n
ATO Assistant Commissioner Anita Challen said a surge in online \u201ctips\u201d, particularly from AI tools and so-called finfluencers, was fuelling dangerous misinformation.<\/p>\n
The warning comes as more Australians turn to property and side income streams to cope with rising living costs, with social media increasingly shaping financial decisions.<\/p>\n
\u201cIn an environment where misinformation can spread within minutes, it\u2019s important to pause and check your tax information before you act on it,\u201d Ms Challen said. \u201cIf a tax claim sounds too good to be true, it\u2019s worth checking.\u201d<\/p>\n
She warned AI-generated advice was a growing risk, with many tools pulling from outdated or overseas tax systems that may not apply in Australia.<\/p>\n
\u201cAI can be helpful, but it often draws from a broad and inconsistent range of sources, which can lead to inaccurate advice,\u201d Ms Challen said. \u201cYour tax return isn\u2019t the place for guesswork.\u201d<\/p>\n
The ATO has made clear it will pay close attention to rental income \u2013 including short-stay properties and informal arrangements \u2013 as well as deductions that appear inflated or poorly substantiated.<\/p>\n
<\/p>\n
Holiday homes and short-stay rentals are expected to see greater scrutiny.<\/p>\n
Tax experts have pointed to a tighter approach from the ATO toward holiday homes and short-stay rentals, with accounting firm BDO warning new guidance means some property owners may not be able to claim certain holding costs \u2013 such as interest, council rates and insurance \u2013 if the property was considered to be used mainly for private or holiday purposes rather than to produce rental income.<\/p>\n
This could apply where owners limit availability during peak periods or use the property themselves for significant parts of the year, meaning expenses must be apportioned or, in some cases, may not be deductible.<\/p>\n
They warned the ATO was applying a risk-based compliance approach to take into account how much a property was genuinely used to generate income compared to private use.<\/p>\n
While ATO has gone hard with data-matching to seek out discrepancies in income declarations, it has a softer approach too in given some of the legitimate deductions it allows.<\/p>\n
Ms Challen said \u201cthere are different deductions available for each source of income depending on the nature of the income and occupation. People may be surprised to learn what they can claim, so it\u2019s worth checking.\u201d<\/p>\n
<\/p>\n
The ATO is using data-matching to track income streams.<\/p>\n
Among the more unusual \u2013 but valid \u2013 deductions were sunscreen, hats and sunglasses for outdoor workers in the fitness and sports industries, specific footwear for flight attendants and even guard dog expenses for security workers.<\/p>\n
Hairdressers and beauty professionals can claim professional-grade scissors, while other workers may be able to claim items like work bags.<\/p>\n
\u201cTaxpayers remain accountable for ensuring the information they or their agents provide to the ATO is accurate \u2013 whether the advice came from a friend, online sources, or if AI tools were used in its preparation,\u201d Ms Challen said.<\/p>\n
\u201cDodgy tax advice doesn\u2019t just mislead \u2013 it can also lead to significant penalties.\u201d<\/p>\n
\u201cDon\u2019t fall into the trap of thinking if you intentionally claim a little more than you are entitled to, it\u2019ll fly under the radar and that the ATO won\u2019t notice.\u201d<\/p>\n
\u201cGetting it right upfront prevents delays, incorrect claims and the need for amendments or ATO compliance action.\u201d<\/p>\n
The tax office has also urged al workers to check their superannuation details were up to date with changes set to take effect from July 1 including payday super.<\/p>\n","protected":false},"excerpt":{"rendered":"This tax time, the ATO will focus on areas where taxpayers are likely to make errors including work-related…\n","protected":false},"author":2,"featured_media":633236,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[43,44,41,39,42,40],"class_list":["post-633235","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/633235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=633235"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/633235\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/633236"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=633235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=633235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=633235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}