Are you aware of the key areas the Australian Tax Office will be paying close attention to in 2022 tax returns? We’ve summarised these for you:
With millions of Australians working remotely throughout extensive lockdowns in late 2021 and beyond, the ATO would expect to see an increase in work-from-home deductions with a corresponding reduction in other work-related claims such as car, laundry, parking and tolls.
If you are using a short-cut method of 80 cents per hour for home office claims, it covers expenses such as phone and internet, decline in value of depreciating assets as well as computer consumables and stationery. Alternatively, you could use a fixed rate of 52 cents per hour and claim such expenses separately.
Rental Property Income & Deductions
If you own one or more rental properties, the ATO will be focusing on this section of your return this year.
You must include all rental income received, including short-term rental arrangements such as AirBNB, insurance pay-outs and any rental bond retained.
Since rental income and expenses are not pre-filled by the ATO and must be manually entered, it is important that you keep detailed records and speak with a registered tax agent or accountant if you need assistance.
Crypto, NFTs, Property & Shares
Crypto investors and traders are warned to keep detailed records of their gains and losses after disposing of cryptocurrency. The ATO is expecting to see more capital gains or losses reporting this year, with crypto becoming more popular among taxpayers.
The ATO can track crypto, through data matching programs with Australian exchanges and know exactly what you are buying, selling or exchanging. The ATO has the knowledge of your customer (KYC) information you provided when signing up for any Australian exchange or wallet.
“Three Golden Rules” of a successful tax return?
If you’re unsure, follow these 3 simple steps in deciding whether the expenses are tax deductible:
- You must have spent the money you’re claiming back yourself and not be reimbursed
- You must only claim work-related portion of expenses
- You must have records to prove the claims