It’s tax time again – that period of the year when we need to sort out our taxes.

Every year, the Australian Taxation Office (ATO) tells us which areas they’re going to watch closely. These are places where people often make mistakes, whether on purpose or by accident.

Understanding what the ATO is focusing on helps you get your tax return right and make the most of it.

In this article, we’ll talk about the four main things the ATO is paying attention to in 2024 and share some easy tips to help you through tax season with less stress and fewer mistakes.

Work-related expenses

Over the past few years, more people have been working from home, leading to an increase in work-related expenses that can be claimed on tax returns. The ATO responded by making it easier to claim these expenses, like introducing a fixed rate of 67 cents per hour for working from home.

In 2024, the ATO will be closely checking these work-from-home expenses and any other work-related costs that individuals claim. It’s crucial to keep proof of all your expenses, so it’s essential to maintain good record-keeping habits.

Evidence to support work-related claims can include things like:

• Timesheets and schedules to show your work-from-home hours
• Proof of rent, rates, or mortgage payments if you’re using your home for business purposes
• Bills for mobile phone and internet services
• Receipts for dry cleaning or washing work uniforms
• Payslips as evidence of union fees
• If you’re claiming the flat rate of 85 cents per kilometer for business travel up to 5,000 kilometers, you’ll need to keep a motor vehicle logbook.

Rental income

The ATO found mistakes in 90% of tax returns related to properties, so this year they’re going to be strict about deductions for investment properties.

If you make money from renting out a property, you need to keep records like invoices, receipts, and bank statements for all the expenses you claim. You also have to prove that your property was available for rent, like by showing online rental listings or ads.

Here are some specific things the ATO will be checking for in 2024:

• People claiming their holiday homes as rental properties for times when they weren’t actually available for rent.
• Claiming immediate deductions for fixing up issues in a newly bought rental property instead of spreading the cost over several years.
• Asking for too much money back for interest expenses.
• Claiming borrowing costs for both their home and their rental property, which isn’t allowed.
• Getting the percentages wrong when splitting rental income for a property owned jointly.

Capital gains on cryptocurrency and investments

The ATO is keeping a close eye on capital gains from cryptocurrencies and other investments, so it’s crucial to understand how taxes work in these cases. If you’ve made money from selling cryptocurrency, make sure you calculate and report those gains accurately when filing your taxes.

The ATO uses a system to match data to catch people who don’t report their cryptocurrency transactions correctly.

If you’re involved in buying, selling, or holding investments like shares, you need to report all of these activities in your tax return. This includes any money you’ve made from dividends or from selling assets at a profit or loss.

If you’re constantly buying and selling assets, the ATO might consider you a trader, which can change how your gains are taxed.

If you’re not sure how to handle your investment activity when doing your taxes, it’s best to get advice from a professional.

Our top tips for avoiding errors in your tax return

Doing complex tax returns can be tough, and nobody wants the tax office to start looking closely at their finances. Here are some tips to make sure your tax return is accurate:

1. Make sure you put all your claims in the right categories according to the tax office rules. If you’re not sure, your accountant can give you a hand with this.
2. Keep all your records for every transaction. That means holding onto digital receipts and keeping track of how far you’ve driven and how many hours you’ve worked from home. You can use something as simple as a spreadsheet to keep track of everything.
3. Don’t stretch the truth when it comes to claiming expenses, even if there’s no need to show evidence (like with home office deductions or car expenses). The tax office is going to be looking extra closely at this in 2024.
4. Make sure you tell the tax office about all the money you’ve earned, whether it’s from a regular job, occasional work, or making money from investments.
5. Stay up-to-date on any recent changes to the tax rules that might affect you. Your accountant can explain any changes that you need to know about.
6. If your finances are more complicated, like if you make money from renting out property or trading cryptocurrency, it’s a good idea to get some professional help with your tax return.

Discover How Supertax Can Assist You with Your Tax Return

At Supertax, we offer personalized assistance with your income tax return through our team of specialists. Whether you prefer virtual consultations or face-to-face meetings at our convenient locations in Geelong or Torquay, our experts are dedicated to supporting you every step of the way.

To schedule an appointment with one of our tax return specialists, please reach out to our team by completing an enquiry form, calling us at 0424 413 808, or sending an email to info@mysupertax.com.au.

We look forward to helping you navigate your tax obligations seamlessly.