Want some hot tips on some hot spots?

As part of the National Tax Accountant’s Association recent Tax Schools, we were kept abreast of the ATO’s individual audit hot spots for 2016, here they are:

Work related expense claims:

– they will be keeping an eye on unusually high work-related expense claims, claims for travel involving travel between home and work and claims for travel expenses that have already been reimbursed by an employer

Rental properties:

– there’ll be an increased compliance focus on rental property deductions, particularly claiming repairs to a newly acquired property and related interest claims

Medicare levy and Medicare levy surcharge:

– resources have been directed to this area of compliance to ensure those claiming an exemption from either of these rates are in fact entitled to do so

CGT issues with applying the main residence exemption:

– issues commonly arise in relation to this area where a property has been used for income producing activities or there have been some developments to the “backyard”

As always, I encourage you to err on the side of caution, keep excellent records for all transactions and be open and honest with me as I am completing your tax return so I can advise you accordingly…

Regards