The Australian Taxation Office (ATO) highlights three key areas to focus on this tax season. From accurate work-related expense claims to avoiding inflated rental property deductions, stay informed…

1. Incorrectly Claiming Work-Related Expenses:
   • Last year, more than 8 million people claimed work-related deductions, with around half of them claiming deductions related to working from home.
   • The ATO revised the fixed rate method for calculating working-from-home deductions, broadening what is included, increasing the rate, and adjusting record-keeping requirements.
   • To use this method, taxpayers need records showing the actual hours worked from home and additional running costs incurred (e.g., electricity or internet bills).
   • Avoid copying and pasting last year’s claim; accurate records are essential.
2. Inflating Claims for Rental Properties:
   • The ATO is closely monitoring rental property owners who make mistakes in repairs and maintenance deductions.
   • General repairs and maintenance are immediately deductible, but capital expenses (initial repairs on newly purchased properties and improvements during ownership) are not.
   • Be cautious about inflated claims to offset increases in rental income.
3. Failing to Include All Income When Lodging:
   • Taxpayers must report all income when filing returns.
   • The ATO emphasizes compliance in this area to ensure accurate reporting.

Remember the golden rules for claiming deductions:

• You must have spent the money yourself and not been reimbursed.
• The expense must directly relate to earning your income.
• Keep records (usually receipts) to prove it.

For more details, you can refer to the full article on the ATO website

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