Are you one of them? Rental property owners, gig economy workers, people who get paid cash, home office workers, cryptocurrency traders, people who earn money overseas, people claiming more than previous years…

1. Rental property owners

You can only claim repairs to a rental property if the damage, defect or deterioration has occurred during the rental period. You cannot claim theses expenses if they existed at the time of purchase, even if you have carried out the repair to make the property suitable for renting. If you have utilised the property for your personal use, ensure your expenses reflect this accurately.

2. Gig economy workers

The ATO harvests information from online platforms like Airbnb, Uber, Airtasker, Stayz, Car Next Door, and more. People who attempt to advertise and earn money from these platforms – and not declare it – will be pinged.

3. People who get paid in cash

The cash economy is so significant that the ATO has formed a dedicated Black Economy Taskforce to investigate and uncover cash transactions. Be careful to not pay in cash, and to declare your cash income.

4. People over-claiming home office expenses

The ATO’s 80 cents-an-hour home expense shortcut was introduced last year when millions of Australians commenced work from home, and it has been extended to the end of the June 2021 financial year.

If you work from home, you can claim a deduction for additional expenses such as electricity, cleaning your dedicated work area, phone and internet usage, computer consumables, stationery and home office equipment. You can claim either the full cost of items up to $300 or the decline in value for items over $300. To avoid over claiming, you must have an accurate justification record of your WFH hours.

5. Cryptocurrency traders

An investment in cryptocurrency is just that…an investment, and any return on your investment needs to be included in your taxable income.

6. Aussies who earn income overseas

It is not enough to declare your overseas income in the country of origin. Tax departments talk to each other, and the ATO expects full transparency of all income earned by Australians. This can be a complicated process and it definitely helps to have an accountant on your side.

7. Aussies claiming much more than previous years

If you have a sudden jump in the value of your claim, the ATO will look into it. Similarly, if you claim significantly more than your peers in the same industry, a red flag will be raised and questions asked.

If you’re one of these 7 Australians, you can protect yourself through accurate record keeping and a sensible approach to your tax obligations. This includes communication when you have questions and concerns. We liaise with the ATO on behalf of our clients on a daily basis and if you would like further support in this area, please give us a call: 02 4320 0500.