The three groups of Aussies being targeted by the tax office – and what you can claim when lodging your return

The Australian Taxation Office has warned it will target three groups of Aussies as it tackles dodgy tax returns.

Landlords, residents who work from home and Australians who do not include all their income are being closely monitored by the tax authorities.

“We often see landlords make mistakes when it comes to rental property repairs and maintenance allowances, so we are monitoring this closely,” ATO Assistant Commissioner Rob Thomson said.

“This year we are focusing primarily on claims that may have been inflated to offset the increase in rental income and thus obtain a greater tax benefit.”

Millions of Australians will be able to file their own tax returns between July 1 and October 31, as the end of the financial year approaches.

Nine in 10 landlords file incorrect tax returns, according to the ATO.

“There is some complexity in the law that we think leads to misunderstandings, and there is also an element around record keeping,” Mr Thomson said.

However, he accused other property owners of “deliberately inflating their claims.”

Landlords are often busted for demanding too much interest on investment loans and making mistakes with repairs and maintenance deductions.

The ATO’s data matching and analysis technology looks at information from lenders, property managers, tax offices and insurance companies to identify inconsistencies in claims.

“We are informing those who we think have made a mistake, and asking a few questions of those who we think are turning a blind eye to the tax law,” Mr Thomson said.

Last year, more than eight million people claimed work-related deductions, at least half of which related to expenses related to working from home. Daily telegram reported.

The ATO’s rules for the WFH deduction have changed twice in the 2022-2023 financial year.

Accountants had reported growing confusion over the popular flat rate deduction method, but Mr Thomson said the error did not appear in the tax returns.

“We have not seen a noticeable increase in the number of errors in the home office deduction, but we are still seeing cases of double dipping, where taxpayers separately claim the items covered by the fixed rate method,” he said.

Mr Thompson said the third group – Australians who don’t include all their income – usually make the mistake of filing their tax returns too early.

“We see a lot of errors in July, where people have forgotten to include interest from banks, dividend income, payments from other government agencies and private health insurers,” he said.

‘If you file your return in early July you double the chance of your tax return being flagged as incorrect by the ATO.’

The ATO adjusted the tax returns of 499,000 taxpayers last financial year based on data matching.

It is believed the ATO is focusing on WFH claims, property owners and incorrect income claims as this is where it loses the most income.

Daily Mail Australia has put together a list of the best tips from experts on how to get the most out of your tax return.

The consensus on taking full advantage of tax season, including deductibles for working from home, clothing, and transportation, is to keep records to support your claim.

WORKING FROM HOME

Acumen financial planner Cameron McLean said people can reclaim costs such as electricity if they work from home, as long as they have proof.

“The Australian Taxation Office wants you to be quite specific,” McLean previously said 9News.

“They want you to know specifically how many days you work, what part of the house is being used.”

He added that people should keep track of these throughout the year for the next tax return.

The ATO said taxpayers can claim deductions for office supplies, energy and office equipment used in the home.

The agency said people who want to file a claim should work from home to fulfill their employment duties and not just perform minimal tasks such as occasionally checking emails or taking phone calls.

Additional running costs may include electricity or gas bills for heating, cooling and lighting, as well as home and mobile internet charges and mobile or home phone charges.

In limited circumstances where someone has a dedicated home office, you may also be able to claim rental or mortgage costs and cleaning costs.

CLOTHING

Mr Mclean said Australians could claim clothing used for specific professions.

For example, a chef can claim the cost of washing his checked trousers, as long as he has the receipts to hand in case the ATO asks for them.

The ATO said employees who purchase, repair or launder job-specific or protective clothing or distinctive uniforms can make a claim.

But it says that ‘conventional’ clothing, such as black trousers worn by office workers or waiters, cannot be reclaimed from the tax authorities.

This includes business suits, swimwear worn by a swimming instructor and jeans or drill shirts worn by professionals.

GIFTS

Taxpayers can claim a deductible for the gifts and donations they offer to charities, as long as the organization is registered.

Donations to crowdfunding platforms such as GoFundMe cannot be claimed, but registered charities such as World Vision Australia can.

The amount you can claim as a deduction depends on the type of gift, for example cash gifts. You can claim the amount of the gift if it is more than $2.

In certain circumstances you can claim a deduction for gifts and donations to registered political parties or independent candidates.

The most you can claim in an income year is $1,500, the ATO said.

TRANSPORT

You can claim the costs you incur when traveling between workplaces, to conferences or customer meetings.

For car costs, it helps if people keep a logbook for three months, which gives an idea of ​​how much they spend over the course of the year.

You can also claim costs for the same journeys when using public transport and ride sharing, short-term car rental, tolls on roads and bridges and parking fees.

EDUCATION

Aussies can get a deductible for courses if they are related to their current job, but cannot claim new qualifications for another profession.

The ATO said parents cannot get a refund for childcare or school fees.

WHAT AUSSIES CANNOT CLAIM

The ATO said items such as tools and computers used for private purposes cannot be claimed.

Mr McLean said he has come across some strange things people try to claim, such as socks, jocks and breast enlargement surgery.

One man even tried to get money back for his daughter’s wedding, telling him it was “all the taxes he’s paid in his life.”

A comprehensive list of what cannot be claimed is available on the website ATO website.

‘Don’t leave it until the last minute’

Mr McLean said Australians should prepare now for their next tax return so they don’t miss out on future tax benefits.

He urged taxpayers not to leave it to the last minute and recommended hiring an accountant or financial advisor.

A financial advisor can check someone’s super to see how much he/she can get back in the run-up to the new financial year.