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The popular claims on the ATO’s watch this year

By Cameron Micallef · May 30 2019
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The popular claims on the ATO’s watch this year

By Cameron Micallef
May 30 2019
Reading:
egg
egg
egg
ATO

The popular claims on the ATO’s watch this year

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By Cameron Micallef · May 30 2019
Reading:
egg
egg
egg
ATO

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 loses 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.

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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 reporting. The share economy includes Uber, house sharing, skilled services and completing the odd job/errand or delivery.  

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The popular claims on the ATO’s watch this year
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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

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About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

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