📣 We're thrilled to announce that a brand new website for Taxopia is coming soon!

New ATO Audit Targets

New ATO Audit Targets (from The Age 16 June 2016)

Australians with rental properties and work-related expenses such as cars, mobile phones, broadband and travel will be the focus of the Australian Taxation Office at tax time.

During the past year the ATO has contacted more than 100,000 rental property owners to inform them about their entitlements or ask them to clarify claims made. This included letters to more than 1000 holiday-home owners suggesting that they review their claims before lodging their next tax return.

“Since 1 July 2014, we have amended over 10,000 assessments relating to income and deduction claims made by rental property owners,” assistant commissioner Graham Whyte told Fairfax Media.
Advertisement

Each year ATO contacts about 350,000 taxpayers about errors or omissions in their returns.
This year common deductions related to work and rental property would be under watch.

The ATO raised $950 million in liabilities from reviews-audits of these types of deductions last financial year and expects to raise about the same again this year.

“We’re trying to hep people get it right,” Mr Whyte said. “We want people to claim what they are entitled to – no more no less.”

More than 2 million Australians own rental properties.

Work-related claims leap

Each year about 12.4 million Australians claim more $30 billion in total deductions against their income.

The ATO will continue to monitor the biggest deduction claimed by Australians – work-related expenses. About 8.5 million Australians claim $19.7 billion in work-related expenses each year.

Mr Kendrick said three key rules applied for all work-related claims. “You have to have spent the money yourself, it must be related to your job, you must have a record to prove it.”

Claims made for work-related car travel were a big focus. About $8 billion is claimed each year.

The ATO would be contacting employers of workers to check their claims.  “We will verify with their employer how much the employee uses the car for work, and whether they travel [to their destination] straight from home,” Mr Kendrick said.

General work-related travel was also under watch. Mobile phone and broadband expenses for work and personal needed to be clearly distinguished.

The ATO would also be reviewing income taxpayers were earning from renting out their homes or driving cars in sharing-economy services such as Airbnb and Uber, and cross-checking it with banks.

Each year, more than 650 million pieces of data are reported to the ATO by third parties including banks, employers, health insurers, state and federal agencies and overseas treaty partners.

Move to prevent ATO system collapse

This year the ATO expects the majority – about 70 per cent – of Australians lodging will so do with the help of a tax agent and the rest will self-lodge online.

The e-Tax system will no longer exist, but all Australians will be able to use myTax if they want to self-lodge.

The ATO would be giving taxpayers real-time information about errors as they lodge.

This was being done with the help of analytics that gives the taxpayer a “nearest neighbour” comparison of their claim against average claims made based on their occupation and location.

“As you are working through your return, if the system notices that you are outside of the norm, it will prompt you so that can you review your claim,” Mr Whyte said.

If people still made claims above the average, it was more than likely they would be contacted by the ATO.

Mr Whyte said the ATO has invested in preventing the system from collapsing this tax time.

Last year it collapsed under the weight of traffic, leaving frustrated users unable to lodge their tax returns and turning to social media to express their discontent.

The ATO was now using external consultants to advise them on their IT systems and the agency was running tests of its systems under heavy loads to avoid outages, Mr Whyte said.

CPA Australia head of policy Paul Drum said: “Hopefully, the ATO’s proactive approach in implementing measures, including running parallel systems, will mitigate the threat of system disruption.”

https://www.theage.com.au/business/the-economy/tax-time-ato-eyes-cars-mobile-phones-broadband-and-workrelated-travel-part-20160615-gpji1b.html


Taxopia online tax accountants can assist with all of your tax return lodgments. That includes company tax returns and trust tax returns and all business tax accounting. 

See other blogs!

How to Set Up a Self-Managed Super Fund (SMSF): A Step-by-Step Guide

Self-Managed Super Funds (SMSFs) are becoming an increasingly popular option for Australians who want greater control over their retirement savings. Unlike traditional superannuation funds managed by external professionals, SMSFs allow you to manage your own investments, tailoring them to your specific needs and goals. However,

Read More »

Compliance in Company Setup

Overview of Company Setup and the Importance of Compliance Starting a business in Australia is an exciting endeavor, but amidst the planning and innovation, compliance stands as a critical pillar. Compliance ensures your business operates within legal and ethical boundaries, safeguarding its long-term viability. Just

Read More »

LIMITED-TIME OFFER – GET $100 OFF ON BASIC PACKAGE TODAY!*

You’ve chosen TAXOPIA LITE, a self-lodgment service. Please be aware that tax offices are starting to phase-out DIY paper lodgments and are encouraging the transition to digital.

Don’t be the last one to enjoy hassle-free digital lodgments. Upgrade to TAXOPIA BASIC PACKAGE today with a special limited-time $100 discount* and enjoy the benefits of having our accountants lodge for you.

As a bonus benefit for working with us, you get a lodgment deadline extension period to avoid penalties.

*The discount only applies to lodgments for one financial year. For clients requiring lodgment for multiple financial years, the discount applies only on the first year. all succeeding tax returns after that will be at regular price.

For the LITE Package: Please note that is a self lodgment service and does not include electronic lodgment by Taxopia. One of our qualified accountants will prepare your tax return, but it is your responsibility to print, sign & post to ATO to lodge.

GET $100 OFF ON BASIC PACKAGE

Continue With Lite Package

You’ve chosen the Taxopia Lite Package…

TAXOPIA LITE is a self-lodgement service. Please be aware that for majority of tax payers, the due date for self-lodged returns is 31st of October.

If you’re self-lodging overdue tax returns, it may put you at risk of incurring penalties from the ATO. We recommend you upgrade to TAXOPIA BASIC PACKAGE and enjoy the benefits of having our accountants lodge for you and get a lodgement deadline extension period to avoid penalties.

For the LITE Package: Please note that is a self lodgement service and does not include electronic lodgement by Taxopia. One of our qualified accountants will prepare your tax return, but it is your responsibility to print, sign & post to ATO to lodge.

GET STARTED WITH THE BASIC PACKAGE

Continue With Lite Package

Need a fast turnaround?*

If you require your taxes to be completed faster, we have a premium Fast Lane option available for this package which puts your request at the front of the queue of our workflow. 

*Excludes public holidays, weekends and office closure dates.

Need a fast turnaround?*

Taxopia’s standard turnaround for this Lite package is three business days. If you require your taxes to be completed faster, we have a premium Fast Lane option available. With this option, pay $220+ GST to get your taxes done within one business day!

*Excludes public holidays, weekends and office closure dates.

A friendly reminder…

Please note that is a self lodgement service and does not include electronic lodgement by Taxopia. One of our qualified accountants will prepare your tax return, but it is your responsibility to print, sign & post to ATO to lodge.

If this option suits your needs, please click below to get started.

Yes, let’s go!

You’ve chosen the Taxopia Lite Package…

Please note that is a self lodgement service and does not include electronic lodgement by Taxopia. One of our qualified accountants will prepare your tax return, but it is your responsibility to print, sign & post to ATO to lodge.

If this option suits your needs, please click below to get started.

Get started now!

* Sole Trader Package pricing conditions, please take note the pricing excludes the following items; however, these services can be provided for an additional cost.

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote.

Get started now!

* Premium Package pricing conditions ($1300+ GST):

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Standard Package pricing conditions ($850+ GST):

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Basic Package pricing conditions: ($425+ GST):

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Please note that ALL our plans exclude the following:

Please contact us for a customised quote if you require help on any of the excluded items.

Get started now!

Company or Trust Tax Return for Accountants & Bookkeepers

* BASIC PLAN ($425+ GST) CONDITIONS:

* STANDARD PLAN ($850+ GST) CONDITIONS:

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Premium Package pricing conditions ($1300+ GST):

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Standard Package pricing conditions ($850+ GST):

Please note that ALL our plans exclude the following:

If any of these exclusions apply to your businesses, please contact us, and we would be happy to provide you with a customised quote for any additional work.

Get started now!

* Basic Package pricing conditions: ($425+ GST):

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Please note that ALL our plans exclude the following:

Please contact us for a customised quote if you require help on any of the excluded items.

Get started now!

Enquire Now

Fill out the form below and we will get back to you as soon as we can.