Uber drivers, Airbnb hosts and people making dodgy deductions are among those who are set to be targeted by the Australian Taxation Office at the end of the financial year.
People using sharing economy platforms to make extra income and people fudging their numbers through investment properties and work related expenses should expect to receive extra attention.
The ATO can obtain financial information from third parties, such as banks and sharing platforms, which allows them to cross-check if people’s tax returns are compliant, H&R Block director of tax communications Mark Chapman warns.
The Australian Taxation Office has drawn up a list of targets set to receive extra attention at the end of financial year (stock image)
Uber drivers (stock image), Airbnb hosts and people making dodgy deductions are among those who are set to be targeted
‘The main thing to be aware of is if you’re in the sharing economy, driving an Uber or renting an Airbnb, you do have tax obligations,’ Mr Chapman told News.com.au.
‘There are a surprising number of people who don’t realise. You can also claim tax deductions as well, so it’s not all bad news.’
Mr Chapman said work-related expenses are also set to be more closely examined.
The ATO has drafted ‘benchmark’ numbers about what each profession should be claiming and may audit those with excessive figures.
‘Thousands of people have already had letters from the ATO, and that will certainly ramp up this coming tax time,’ Mr Chapman said.
Accountants who fudge numbers for their clients by inflating work-related personal tax deductions will also be targeted.
People using sharing economy platforms, such as Airbnb (stock image) to make extra income will come under the microscope
Taxpayers claiming deductions on their holiday homes despite it not being rented or available to rent has also caught the attention of the ATO.
‘There’s no problem with people using their rental property for their holiday, but holiday home owners need to remember they can only claim tax deductions for expenses made during a period when the home is rented out or genuinely available for rent,’ assistant commissioner Kath Anderson said earlier this month.
She also warned property owners cannot charge deductions at the market rate if they are renting to friends or family at ‘mates rates’.
One tax payer had to return more than $45,000 in deductions claimed on a holiday home because they were renting it below market rate, she said, according to News.com.au.