ATO target areas for 2024 Financial Year

Jun 20, 2024

Working From Home

To claim a working from home deduction you must have comprehensive records which detail the number of hours worked from home.

Key requirements are.

  • Substantiation: All deductions claimed must be backed by detailed records of days and number of hours worked (e.g.; diary)
  • Direct Connection: Expenses must be incurred and must have a direct connection to earning income.

Rental Properties

The ATO are particularly concerned with the following areas.

  • Repairs vs Improvements

It is important for property owners to understand that repairs restore an item to its original condition and an immediate deduction can be claimed whereas an improvement is an upgrade to property which is generally depreciated over time.

  • Interest deductions

Interest paid on loans used to purchase a property can be claimed however, property owners should make adjustments for personal expenses including where the loan has mixed use (private/investment).

  • Private use

The ATO are reviewing record keeping in relation to private use of investment properties. Accordingly records of the number of nights used for private purposes.

Undeclared Income from the Sharing Economy

We note there are various platforms available for taxpayers to earn freelancing income like Airbnb, Uber etc. The ATO are reminding taxpayers of the need to declare all income earned particularly in short term rental income including ride sharing, delivery service and online freelancing income. The ATO are now collaborating with different shared economy platforms to gather data and identify undeclared income.

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