The Australian Tax Office (ATO) has revealed its areas of focus this tax time, as EOFY looms and misinformation around tax tips and refund hacks continues to rise.

With finfluencers recently falling under ASICs spotlight, the ATO is also warning that it’s seen a recent rise in influencer content that shares tax-time tips that may be inaccurate. Their advice? Approach any tax-related tips with caution.

In fact, ATO Assistant Commissioner Anita Challen says Australians should think twice before acting on information from third-party sources such as artificial intelligence (AI) platforms, ‘finfluencers’, or even advice from family or friends.

“In an environment where misinformation can spread within minutes, it’s important to pause and check your tax information before you act on it, for example, when you go to lodge your tax return. If a tax claim sounds too good to be true, it’s worth checking,” Challen said.

Challen says Aussies using AI to assist them with their return should proceed with caution.

“AI can be helpful, but it often draws from a broad and inconsistent range of sources, which can lead to inaccurate advice. For example, it could be drawing content about tax obligations or laws from outside of Australia or outdated sources. Your tax return isn’t the place for guesswork,” Challen said.

The dangers of dodgy tax advice

‘Tax misinformation often sounds convincing, but dodgy tax advice doesn’t just mislead – it can also lead to significant penalties,’ Challen said.

Regardless of whether you prepare your return yourself or use an accountant, Challen reminds taxpayers that they are accountable for ensuring accurate information.

“Getting it right upfront prevents delays, incorrect claims and the need for amendments or ATO compliance action,” she said.

Tax time focus areas revealed

As the end of the year approaches, the ATO has also revealed it’s key areas of focus for the year. Work-related expenses are once again under the microscope.

‘We understand apportioning expenses can be tricky, but don’t fall into the trap of thinking if you intentionally claim a little more than you are entitled to, it’ll fly under the radar and that the ATO won’t notice,’ said Challen.

“Remember our 3 golden rules: Work-related expenses must relate to earning your income, you must have spent the money yourself and not have been reimbursed, and you have to be able to support your claim with records such as a receipt, invoice or logbook.”

Like in previous years, taxpayers will have the option to claim deductions via the actual cost method (which requires records of all expenses claimed) or the fixed rate method, which allows taxpayers to claim 70 cents for every hour worked from home and covers running expenses such as electricity, internet and phone.

“If you think you’ve overclaimed your work-related expenses in previous years, you need to lodge an amendment or speak to your tax professional and ask them to amend your prior year claims,”’ said Challen.

Side hustles and cash payments

The ATO is also reminding taxpayers to declare all sources of income on their tax return, including side-hustles, cash jobs, interest and rental income. Each form of income attracts different deductions, and Challen encourages taxpayers to check the ATO website to confirm what they can claim.

“People may be surprised to learn what they can claim, so it’s worth checking the ATO’s occupation and industry specific guides  to check your entitlements.”

She said some quirky but legitimate work-related deductions include sensible shoes for flight attendants, scissors for hairdressers and guard dogs for security workers.

The ATO has a range of support services available to the community during tax time, including the Tax Help program and an Indigenous helpline.

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