Scrolling social media for a quick tax win? You’re not alone, but you may be heading for trouble. Incorrect claims are firmly on the ATO’s radar this tax time, and it’s outlined the key areas it’ll be watching when returns start landing.
The ATO is urging the community to be wary of incorrect or misleading information, particularly claims promising bigger refunds, shortcuts or hacks. A lot of the bad advice doing the rounds is coming from third-party sources: AI tools, social media “finfluencers”, and even well-meaning family and friends, who may unintentionally pass on information that simply doesn’t apply to your circumstances.
The key is, you remain responsible for what’s on your return. Taxpayers are accountable for ensuring the information they or their agents give the ATO is accurate, regardless of whether it came from a mate, a website or a chatbot. Penalties and interest can apply where claims can’t be substantiated.
Focus area 1: work-related expenses
Overclaimed work-related deductions are once again under the microscope. Every work-related claim must meet three tests:
- the expense must directly relate to earning your income;
- you must have paid for it yourself and not been reimbursed; and
- you must have a record, such as a receipt, invoice or logbook, to back it up.
If you work from home, the fixed rate method lets you claim 70 cents for every hour worked from home, which already covers running costs such as internet, phone usage, electricity and stationery. A common mistake is “double-dipping” – using the fixed rate and then separately claiming items it already includes. Keeping a clear record of your hours worked from home throughout the year will make this far easier to substantiate.
Focus area 2: omitted income
The ATO is also reminding taxpayers to declare all sources of income on their return, including side-hustles, cash jobs, interest and rental income. With extensive data matching now in place across banks, sharing economy platforms and property managers, undeclared income is far more visible to the ATO than many people realise.
The flip side is that legitimate deductions are often broader than expected. The ATO’s occupation and industry specific guides – or a quick chat with your registered tax professional – can help you identify everything you’re properly entitled to claim.
