By Joe Smith
A few people have wished me a Happy New Financial Year and while there are things that we have to look forward to in this financial year, there are quite a few things to look out for to ensure it is a Happy New Financial Year!
As usual the ATO have advised us of the areas that they will be targeting in individual tax returns lodged this year. These include claims for working from home, telephone and internet expenses as well motor vehicle expense claims to name just a few. The most important piece of advice that I can give you in relation to these is to have detailed records to substantiate claims for any amounts incurred. Further to this, if you lodge your tax return through a reputable tax agent then they should keep detailed records to substantiate claims being made.
Investment properties and holiday homes are also on the ATO radar. Specifically, the interest being claimed (they are looking at investment loans with redraws that are not relating to tax deductible expenses), the percentage split of income and expenses between co-owners, holiday home expenses when the property is genuinely available for rent, and repairs vs capital improvements to properties.
Small business owners, specifically with income from Uber, Airtasker, Airbnb and Stayz are also in the crosshairs of the ATO with a focus on matching the information reported to the ATO from these platforms. The ATO are very tech savvy these days and the sharing economy is one area where they see they can gather a significant amount of underpaid tax with not too much effort.
Finally, cryptocurrency and other investments are being targeted. The ATO are sending ‘reminders’ to individuals, and their tax agents, who have sold investment assets and property that they may need to record a capital gain or loss on their individual tax returns.
Call the team at UHY Haines Norton on 07 4972 1300 to book your 2025 tax return appointment today!
