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Three key areas to focus on this tax season…

Three key areas to focus on this tax season…

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

For any help on your tax needs, get in touch with us today!





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