For the 2022-23 financial year tax returns and lodgements, the Australian Taxation Office (ATO) has announced the four key areas it will be focusing on. This means all taxpayers need to be extra vigilant about the minor details to avoid audits and penalties for tax time 2022.

As mentioned by the ATO, the key focus will be on:

• Record-keeping
• Work-related expenses
• Rental property income & deductions
• Capital gains from crypto, property, & shares

All eligible taxpayers need to take the right steps while lodging their returns with a proper level of scrutiny for appropriate reporting of deductions and income.

1. First Focus: Record-keeping

By organising and maintaining the income and deduction records made every day with proper bookkeeping, a taxpayer can ensure accurate lodgements and a smooth tax time to claim the deductions they are entitled to. Those submitting false records and statements to gain an unfair advantage will be penalised.

2. Second Focus: Work-related Expenses

Work-related expenses in most cases are deductible. This means one can file a claim for transactions they did for work purposes and not for personal benefits. There are three models available for claiming work-related deductions from home, including shortcut method, fixed rate method and actual cost method. Make sure you only claim work-related expenses and not the private ones.

3. Third Focus: Rental Income & Deductions

All rental property owners must include the income receipts they received from rental in their tax return lodgement. Keeping an accurate and timely record of income and deductions can help you or your registered tax agent in Dandenong with your tax affairs. Any discrepancy noticed by the ATO can delay the processing of refund, if any.

4. Fourth Focus: Capital Gains From Crypto Assets, Property & Shares

Crypto is gaining worldwide popularity and is a popular asset being used by Aussies. In case you dispose of any of crypto-related assets, property, tokens, or shares, don’t forget to calculate a capital gain or capital loss and record it in your tax return. Since many taxpayers are indulged in buying, selling or exchanging digital coins or cryptocurrency, it’s important to be aware of the tax obligations associated with it.

If you are naive about taxes and want to take the assistance of an experienced tax accountant in Geelong to help you with tax lodgements, feel free to consult us at KPG Taxation.