The three groups of Aussies being targeted by the tax office - and what you can ... trends now
The Australian Taxation Office has warned it will be targetting three groups of Aussies as it clamps down on dodgy tax return claims.
Landlords, residents working from home and Aussies who don't include all their income will be closely scrutinised by the tax office.
'We often see landlords making mistakes when it comes to repairs and maintenance deductions on rental properties, so we're keeping a close eye on this,' ATO assistant commissioner Rob Thomson said.
'This year, we're particularly focused on claims that may have been inflated to offset increases in rental income to get a greater tax benefit.'
Millions of Australians will be able to lodge their own tax returns between July 1 and October 31 as the end of the financial year looms.
The Australian Taxation Office has revealed it will crack down on property owners, WFH deductions and income claims this financial year
Nine out of 10 landlords are submitting incorrect tax returns, according to the ATO.
'There's some complexity in the law which we think that leads to some misunderstanding, and there's also an element around record keeping,' Mr Thomson said.
However, he accused other property owners of 'deliberately inflating their claim'.
Often, landlords are busted for claiming too much interest on investment loans and making mistakes on repairs and maintenance deductions.
The ATO's data matching and analytics technology looks at information from lenders, property managers, state revenue offices and insurance companies to spot claim inconsistencies.
'We educate those who we think have made a mistake, and ask a few questions of those we think are turning a blind eye to tax law,' Mr Thomson said.
Last year more than eight million people claimed work-related deduction with at least half related to work-from-home (WFH) expenses, the Daily Telegraph reported.
The ATO's rules for WFH deductions changed twice in the 2022-2023 financial year.
Accountants had reported increased confusion about the popular fixed-rate method for deductions but Mr Thomson said the mistake did not appear in tax returns.
'We haven't seen any noticeable increases in mistakes for working-from-home deductions, but we are still seeing instances of double dipping, where the taxpayer separately claims the items which are included under the fixed-rate method,' he said.
Mr Thompson said the third group - Aussies who dont include all their income - usually made the mistake of filing their tax return too early.
'We see lots of mistakes in July where people have forgotten to include interest from banks, dividend income, payments from other government agencies and private health insurers,' he said.
'By lodging in early July, you are doubling your chances of having your tax return flagged as incorrect by the ATO.'
The ATO adjusted 499,000 taxpayers' tax returns using data matching alone last financial year.
It is believed the ATO is focusing on WFH claims, property owners and incorrect income claims as that is where it loses the most revenue.
Daily Mail Australia compiled a list of the best tips from experts on how to make the most of your tax return.
The consensus on making full use of the tax season including deductibles for working from home, clothing and transport is to keep records to back up your claim.
Millions of Australians will be able to lodge their own tax returns between July 1 and October 31
WORKING FROM HOME
