08 9242 2085 – admin@astrotax.com.au
In our experience, two of the worst mistakes you can make when preparing your tax return are:
- Missing out on a legitimate deduction because you didn’t realise you could claim it or you didn’t keep the records and are not sure what to do; or
- Claiming ineligible amounts resulting in an ATO audit, adjustment and penalties.
Now, more than ever, you should be seeking advice from a professional (tax agent) to make sure you get this right. And there is no silly question, better to ask us then to simply miss out because you aren’t sure.
Home offices, work uniforms, work related car expenses based on kilometres, Airbnb hosts and bitcoin investors are just some of the areas set to go under the microscope this year as the Australian Taxation Office looks to “crack down on dodgy claims”.
The ATO has been using their data matching capabilities and doing a series of random audits on taxpayers. And work related expenses has been highlighted as a key target area. Last month’s Federal Budget handed the ATO extra cash specifically to deal with the issue. You should also expect greater scrutiny on what proportion you claim for work versus private use.
Also in the firing line this year will be property investors incorrectly claiming deductions, such as people with holiday homes claiming for times they use the home themselves, or letting the home out to family or friends at a reduced rate but claiming the full amount.
Uber drivers, Airbnb hosts and other people who earn money in the sharing economy are also on the ATO’s radar. The banks and even the platforms themselves now hand over your information directly to the ATO, meaning the discrepancy will automatically be picked up.
Finally, investors who first got into bitcoin and other cryptocurrencies towards the end of last year could be in for a rude shock. “The ATO is really looking at that as a big risk area, because it’s new and people don’t understand the tax implications,”.
So the moral of the story, call us at Astro Tax on 92422085 to help you make sure you are getting this right.
And if this all seems a little unfair, be grateful we don’t have a window tax…(yes it was real, in England in 1755)
