The Australian Taxation Office (ATO) has recently announced four key focus areas for Tax Time 2022.
The ATO will be focusing on:
- work-related expenses. To claim a deduction for working from home expenses, there are three methods available depending on your circumstances. You can choose from the shortcut (all-inclusive), fixed rate and actual cost methods, so long as you meet the eligibility and record-keeping requirements. For more information click HERE.
- rental property income and deductions. If you are a rental property owner, make sure you include all the income you’ve received from your rental in your tax return, including short-term rental arrangements, insurance payouts and rental bond money you retain.
- capital gains from crypto assets, property, and shares. For more information, click HERE.
These ATO priority areas will ensure that there is an appropriate level of scrutiny on correct reporting of deductions and income, so that Australia continues to have a strong tax system that can support the Australian community. Taxpayers can take steps to lodge right the first time.
Assistant Commissioner Tim Loh explained that “The ATO is targeting problem areas where we see people making mistakes.”
“It’s important you rethink your claims and ensure you can satisfy the 3 golden rules” Mr Loh said.
__The golden rules are: __
- You must have spent the money yourself and weren’t reimbursed.
- If the expense is for a mix of income producing and private use, you can only claim the portion that relates to producing income.
- You must have a record to prove it.