The ATO has warned taxpayers to be vigilant on a range of claims that they will be paying greater attention to during tax time. These claims include work-related expenses, cryptocurrency gains and rental income and deductions. The ATO has stated the areas in high focus are where most mistakes are made.

Work-related expenses

There was a big increase in work-related expenses, with one in three Australians having claimed working-from-home expenses in their tax return last year.

To claim work-related expenses, you need to have spent the money yourself and have not been reimbursed. If the expense is for a mix of income-producing and private use purposes, you can only claim the portion that relates to work. An example of this is home internet costs when you use a portion of your internet to work from home. You must also have a record of your work-related expenses to claim it.

Rental income and deductions

Rental income and deductions have become a focal point this year with the ATO warning rental property owners to include all the income received from rentals in the tax return, including short-term rental arrangements, insurance payouts and rental bond money retained.

Capital gains from Crypto

The Tax Office said it would also be placing a strong focus on cryptocurrency gains this tax time. Through the ATO’s data collection program, they are aware of crypto transactions made by Australians. Around 5 per cent of Australia’s adult population has purchased a Crypto asset.

If you have disposed of an investment asset such as property, shares or a crypto asset this financial year, you will need to calculate a capital gain or capital loss and record it in your tax return.

The ATO often sees many mistakes in July as people rush to lodge their tax returns and forget to include interest from banks, dividend income, and payments from other government agencies.

In all of the situations listed above, thorough record-keeping is recommended for all claims and capital gains. If you have concerns regarding these areas or any others relating to your individual return, get in touch with your advisor.