Tax Audit Hot Spots

The ATO have indicated that they will be targeting the following areas in this year’s tax returns. Doubled with the fact that the ATO has introduced a deduction schedule in the 2019 year, you can be sure that work related deduction audits will be a regular occurrence.

Standard Deductions

Using substantiation exceptions – This includes the under $300 Rule, Laundry $150 Rule and Cents Per Kilometre Rule, for motor vehicles are common deductions claimed by taxpayers where they do not have to supply substantiation (receipts). The ATO are now targeting these deductions to ensure taxpayers are incurring the expense, the expense is incurred in earning assessable income and the employee has not been reimbursed by the employer.

Home Office Expenses

These claims are on the rise and the ATO are going to pay closer attention to these claims. This includes using the home as a matter of convenience, as opposed to using it as a sole base of operations.

Air BNB and Similar Rental Arrangements

The ATO are using data matching facilities to ensure that the correct amount of income and deductions are being reported.

Repairs to Rental Properties

Making sure that repair claims are for actual repairs, and are not capital items or improvements.

Claims for Personal Super Contributions

In particular, focusing on the appropriate paperwork being completed. This includes lodging a “Notice of Intent” with the superannuation fund and receiving an acknowledgement letter from the superannuation fund.


A large focus from the ATO on data matching and benchmarks ensure the ATO are always watching …. now more than ever!!


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