Save
The popular claims on the ATO’s watch this year

The popular claims on the ATO’s watch this year
With its eyes on the $8.7 billion gap between the taxes individuals were expected to pay and the taxes they are actually paying, the ATO will likely be targeting a range of popular deductions this tax time.

H&R Block believes the ATO has identified two main hotspots in 2019 in order to reclaim these losses being a crackdown on work-related expenses and property deductions.
Work-related expenses
The ATO believes work-related expenses claims are the biggest cause of this tax gap and have signalled its intent to look closely at these deductions.
According to H&R Block, the ATO is targeting the following:
- Claims for work-related clothing
- Deductions for home office use
- Overtime meals claims
- Union fees and subscriptions
- Mobile phone and internet costs
- Motor vehicle claims where taxpayers take advantage of the 68 cent per km flat rate for up to 5,000kms
- $300 dollar or less deductions without receipts
Property
Over 1.8 million people – or about 8 per cent of the Australian population – own an investment property, according to the ATO. With this, the ATO has highlighted it as the second-biggest area of focus, announcing a series of audits with 90 per cent of returns reviewed.
- The ATO will pay attention to excessive interest expense claims
- Incorrect apportionment of rental income and expenses
- Holiday homes that are not genuinely available for rent
- Incorrect claims for newly purchased rental properties, particularly costs of repairs and fixing defects
Cryptocurrency
While it is not the main area, H&R Block also believes that the ATO is modernising and is cracking down on cryptocurrencies and sharing economy.
Cryptocurrencies are owned by between 500,000 to 1 million Australians, with the ATO believing some investors are failing to declare profits or losses on crypto.
The sharing economy
Finally, the ATO is also closely looking at the shared economy to ensure that expenses are correctly reported. The share economy includes Uber, house sharing, skilled services and completing the odd job/errand or delivery.
Learn more about tax claims and what to avoid this tax season as the ATO warns taxpayers about being ripped off.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more

Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more

Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more

Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more

Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more

Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more

Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more

Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more

Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more

Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more

Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more

Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more

Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more

Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more

Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more

Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more