As tax time looms, the ATO said this year it will focus on tracking records, work-related expenses, rental income and deductions and capital gains from crypto assets.
Assistant Commissioner Tim Loh said the ATO would target areas where people often make “mistakes” and urged all Australians to reconsider their claims.
Of particular note is the way Australians invest – and deduct – the costs associated with cryptocurrency.
When Australians dispose of an asset, such as real estate, stocks, cryptocurrency or even a non-fungible token (NFT), they must calculate a capital gain or loss of capital and include it in their returns.
“Crypto is a popular type of asset and we expect to see more capital gains or losses in tax returns this year. Remember, you cannot offset your crypto losses against your salary and wages,” said Loh.
“Through our data collection processes, we know that many Aussies buy, sell or exchange digital coins and assets, so it’s important for people to understand what this means for their tax liabilities.”
He advised Australians to think about their taxes now to avoid the stress – or financial penalty – of a late or incorrect declaration.
“We know there are still a few weeks to go until tax time, but if you start organizing the income and deductions you’ve been keeping all year, it will guarantee you a smoother tax time and help you keep track of the deductions. claim what you are entitled to,” said Loh.
The assistant commissioner said any claim must meet the “three golden rules” of tax, meaning you must have spent the money yourself and not been refunded, you can only claim the work portion of an expense and you must have proof to prove it.
The slow phasing out of the COVID-19 restrictions means the ATO also expects the work-from-home deduction to fall this year.
“Some people have moved to a hybrid work environment since the start of the pandemic, with one in three Australians claiming the cost of working from home on their tax returns last year,” Loh said.
“If you continued to work from home, we would expect a corresponding reduction in car, clothing and other work-related expenses such as parking and tolls.
“Each individual’s work-related expenses are unique to their circumstances.
“If your work arrangements have changed, don’t just copy and paste your last year’s declarations.
“If your expenses have been used for both work-related and personal use, you can only claim the work-related portion of the expenses.
“For example, you can’t claim 100 percent of cell phone charges if you use your cell phone to call Mom and Dad.”
Those eager to have their tax returns in their bank account are also urged to wait for the pre-fill to be done on their account, which is generally completed by the end of July.
Pre-populated information — including interest from banks, dividend income, private health insurers, and more — generally prevents errors or missed deductions when manually entering all earnings.
“Before submitting, you can check whether your employer has marked your income statement as ‘fiscally ready’ and whether your pre-fill is available in myTax. in delays in your refund,” Loh said.
“While we receive and match a lot of information about rental income, income from foreign sources, and capital gains related to stocks, crypto assets or real estate, we don’t prefill all of that information for you.”
The information on this website is of a general nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal goals, financial situation or needs. Before acting on any information on this website, you should consider the appropriateness of the information in light of your objectives, financial situation and needs.
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