Welcome to Tax Time 2016

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Welcome to Tax Time 2016

Manu Gupta | Principal • July 18, 2016

Welcome to Tax time 2016. To better prepare you for this tax time, please click here to download our tax time checklists.

Meanwhile, below are 2 messages from ATO on the areas of audit that they will focus on this tax time.

ATO Focus on Work Related Deductions

The ATO has announced that it will focus on work-related deductions claims that are higher than expected, in particular, car expense claims for transporting bulky tools, an deductions for travel, internet and mobile phone, and self-education.

The ATO said that this year, for the first time ever, it will check taxpayers' deductions in real- time as they complete their online return. IT will take a closer look at any unusual deductions and contact employers to validate these claims.

The ATO has also reminded that there has been a change in the rules for calculating car expenses this year and taxpayers need to use a logbook or the cents per kilometer method to support their claims. It is encouraging taxpayers to use the myDeduction tool in the ATO mobile app which allows taxpayers to record work-related deductions on the go, and uploads directly into their next tax return just like the pre-filled information.

ATO Focus on Rental Property Deductions

The ATO has announced that it will focus on excessive interest expense claims and incorrect apportionment of rental income and expenses between rental property owners. It will also look at holiday homes that are not genuinely available for rent and incorrect claims for newly purchased rental properties.

The ATO has reminded taxpayers when claiming deductions for their rental property to include all the rental income and make sure that their property was genuinely available for rent when the expenses was incurred. The payers must also make sure the apportion any deductions to take any private use into account, and must have records for the claims they make.

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