Every year, Tax Time brings a flood of advice — some of it helpful, much of it not. This year, the ATO is sounding the alarm about the rise of misleading tax information circulating online, and urging Australians to think carefully before acting on anything they haven't verified.

Be careful what you follow

Social media is full of tax "hacks" and promises of bigger refunds, but the ATO is clear: if it sounds too good to be true, it probably is. The ATO is specifically calling out advice from AI platforms, so-called "finfluencers," and even well-meaning tips from family and friends. While AI tools can be useful for general information, they can also produce inaccurate advice when it comes to your specific tax situation. As the ATO puts it: "Your tax return isn't the place for guesswork."

The safest approach is to work with a registered tax agent who knows your circumstances and is accountable for the advice they give.

What the ATO is focused on this Tax Time

Beyond misinformation, the ATO has flagged specific areas where taxpayers commonly make mistakes — and where it will be paying close attention:

Work-related deductions and expenses. Claiming deductions is legitimate, but only when the expense is directly related to earning your income, and only to the extent it applies. If an expense is partly personal and partly work-related, it needs to be properly apportioned. Overclaiming — even accidentally — can trigger an audit or a tax debt down the track.

Omitted income. The ATO has sophisticated data-matching tools and is increasingly focused on income that doesn't always make it onto a tax return. This includes income from side-hustles, cash jobs, and rental properties. If you earned it, it needs to be declared — regardless of how it was paid.

The bottom line

Get your information from a reliable source, keep good records throughout the year, and don't leave your return to chance. If you'd like help lodging your tax return or want to make sure you're claiming correctly, the RGA team is here to help.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.