The Australian Taxation Office (ATO) has revealed four key areas that they will target this time as the 2022 tax season approaches.
- Record-keeping
- Work-related expenses
- Rental property income and deductions
- Capital gains from crypto assets, property, and shares
These ATO priority areas will ensure that there is an appropriate level of scrutiny on the correct reporting of deductions and income.
Record Keeping:
The ATO has advised the tax agents to include interest, dividends, and other payments their clients have received from the government. They have advised the agents to also make sure the client provides the proper record as there is a process in place to check the reported returns.
Work-related expenses
The ATO will also be focusing on working from home claims this year. ATO has observed that one in three Australians have claimed working-from-home expenses in their tax return last year. To claim a deduction for working-from-home expenses, there are three methods available, depending on your circumstances. You can choose from the shortcut (all-inclusive), fixed-rate and actual cost methods, as long as you meet the eligibility and record-keeping requirements.
Rental property income and deductions
All income received from a rental property in tax returns should be declared, including short-term rental arrangements, insurance pay-outs, and rental bond money that has been retained.
Capital gains from crypto assets, property, and shares
Through the data collection processes, ATO has identified that many Australians are buying, selling, or exchanging digital coins and because of that, they are expecting to see more capital gains or capital losses reported in tax returns this year. They also want to remind the taxpayers that they cannot offset crypto losses against their salary and wages.
