Areas Often See Mistakes

Areas Often See Mistakes


Taxpayers be aware.


ATO is continuing to prioritize areas where they often see mistakes being made:


  1. Rental Property Deductions.

The ATO’s review of income tax returns shows that 9 in 10 rental property owners are getting their returns wrong. It often sees rental income being left out, or mistakes being made with property-related deductions, like overclaiming expenses or claiming for improvements to private properties.

Therefore, The ATO encourages rental property owners and their registered tax agents to take extra care this tax time and review their records before lodging their returns.

The ATO focuses on interest expenses and ensures rental property owners understand how to correctly apportion loan interest expenses where part of the loan was used for private purposes (or the loan was re-financed with some private purpose).


  1. Work-Related Expenses.

Avoid the ‘copy-paste’

With continued shifts in the way Australians are working, it is important for taxpayers to consider whether their claims reflect their working arrangements this year.

This year, the ATO is particularly focused on ensuring taxpayers understand the changes to the working from home methods (refer to PCG 2023/1) and are able to back up their claims.

Taxpayers can use the actual cost, or the revised fixed rate method, to claim their working from home expenses.


  1. Capital Gains Tax.

The ATO is reminding taxpayers that CGT may apply when a taxpayer disposes of assets such as shares, crypto, managed investments or properties.

“Generally, your main residence is exempt from CGT, however, if you have used your home to produce income, such as renting out all or part of it through the sharing economy, for example Airbnb or Stayz, or running a business from home, then CGT may apply,”

The ATO also reminds taxpayers of the importance of keeping records of the income-producing period and the portion of the property used to produce income.



Are you afraid that you are maybe reporting wrong amount of this areas? Please don’t hesitate to contact us now.



Yan (Jenny) Qi CA

Founder of Progress CA Pty Ltd

Contact no. 0403 050 779




Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? Then why not contact me at our Falconbridge office or Luera office in Blue Mountains office to arrange a one-on-one consultation? Just Book Free consultation up on the right to find the appointment options.

Yan Qi CA





Mobile: 0403 050 779

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