Key Focus Areas: Deductions and Income Errors
Australians should be cautious of misleading tax advice this season, as warned by the Australian Taxation Office (ATO). Claims of shortcuts or hacks promising larger refunds are particularly concerning.
Recently, an increase in tax-related tips shared online has been noted by the ATO. Australians are advised to be sceptical of unverified information. Social media influencers, AI platforms, and personal acquaintances may not always provide reliable advice.
According to ATO Assistant Commissioner Anita Challen, verifying tax information before acting on it is crucial. She remarked, “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.”
Tax Time Focus on Deductions and Income
Errors commonly occur in work-related deductions and omitted income, which the ATO will focus on this tax time. It is essential for taxpayers to confirm that expenses claimed are directly related to earning income, have not been reimbursed, and are supported by records like receipts or invoices.
Ms Challen noted, “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.”
Calculating work-from-home deductions can be done using two methods offered by the ATO: the actual cost method, requiring detailed records, and the fixed rate method, allowing for a claim of 70 cents per hour worked from home.
All income sources, including side jobs and rental income, should be declared by taxpayers. The myDeductions feature in the ATO app and industry-specific guides are available to support this process.
The introduction of Payday Super from 1st July 2026 is a reminder for individuals to verify their superannuation details to ensure they receive full entitlements from employers.
Taxpayers remain accountable for the accuracy of the information they provide, regardless of its source. Ms Challen stated, “Tax misinformation often sounds convincing, but dodgy tax advice doesn’t just mislead – it can also lead to significant penalties.”
For reliable information, the ATO encourages taxpayers to use its website or app, or consult with registered tax professionals. Accurate submissions prevent delays, incorrect claims, and the need for amendments or ATO compliance action.
Last updated: 29 June 2026, 12:19 pm
