The three groups of Aussies being targeted by the tax office

• The ATO will crack down on landlords, WFH claims and income
• Experts revealed how Aussies can make the most of their claim
• READ MORE: Aussies suffer through biggest tax rise in the WORLD

The Australian Taxation Office has warned it will be targetting three groups of Aussies as it clamps down on dodgy tax return claims.

Landlords, residents working from home and Aussies who don’t include all their income will be closely scrutinised by the tax office.

‘We often see landlords making mistakes when it comes to repairs and maintenance deductions on rental properties, so we’re keeping a close eye on this,’ ATO assistant commissioner Rob Thomson said.

‘This year, we’re particularly focused on claims that may have been inflated to offset increases in rental income to get a greater tax benefit.’

Millions of Australians will be able to lodge their own tax returns between July 1 and October 31 as the end of the financial year looms.

Nine out of 10 landlords are submitting incorrect tax returns, according to the ATO.

‘There’s some complexity in the law which we think that leads to some misunderstanding, and there’s also an element around record keeping,’ Mr Thomson said.

However, he accused other property owners of ‘deliberately inflating their claim’.

Often, landlords are busted for claiming too much interest on investment loans and making mistakes on repairs and maintenance deductions.

The ATO’s data matching and analytics technology looks at information from lenders, property managers, state revenue offices and insurance companies to spot claim inconsistencies.

READ MORE: The group of Australians being smashed by the biggest tax rise in the WORLD – but here’s how you can beat the taxman

‘We educate those who we think have made a mistake, and ask a few questions of those we think are turning a blind eye to tax law,’ Mr Thomson said.

Last year more than eight million people claimed work-related deduction with at least half related to work-from-home (WFH) expenses, the Daily Telegraph reported.

The ATO’s rules for WFH deductions changed twice in the 2022-2023 financial year.

Accountants had reported increased confusion about the popular fixed-rate method for deductions but Mr Thomson said the mistake did not appear in tax returns.

‘We haven’t seen any noticeable increases in mistakes for working-from-home deductions, but we are still seeing instances of double dipping, where the taxpayer separately claims the items which are included under the fixed-rate method,’ he said.

Mr Thompson said the third group – Aussies who dont include all their income – usually made the mistake of filing their tax return too early.

‘We see lots of mistakes in July where people have forgotten to include interest from banks, dividend income, payments from other government agencies and private health insurers,’ he said.

‘By lodging in early July, you are doubling your chances of having your tax return flagged as incorrect by the ATO.’

The ATO adjusted 499,000 taxpayers’ tax returns using data matching alone last financial year.

It is believed the ATO is focusing on WFH claims, property owners and incorrect income claims as that is where it loses the most revenue.

Daily Mail Australia compiled a list of the best tips from experts on how to make the most of your tax return.

The consensus on making full use of the tax season including deductibles for working from home, clothing and transport is to keep records to back up your claim.

WORKING FROM HOME

Financial planner from Acumen Cameron McLean said people can claim back costs like electricity when working from home as long as they have the proof.

‘The Australian Tax Office needs you to be pretty specific,’ McLean previously told 9News.

‘They need you to know specifically how many days you’re working, what part of the house gets used.’

He added people should keep track of these throughout the year for the next tax return.

The ATO said taxpayers can get deductions for stationery, energy and office equipment used in the home.

The agency said people wanting to make a claim need to work from home to fulfil employment duties and not be just carrying out minimal tasks like occasionally checking emails or taking calls.

Additional running expenses may include electricity or gas bills for heating, cooling and lighting as well as home and mobile internet expenses and mobile or home phone costs.

In limited circumstances where someone has a dedicated home office, you may also be able to claim for rent or mortgage costs and cleaning expenses.

CLOTHING

Mr Mclean said Aussies can claim for clothes used for specific occupations.

A chef can claim for laundry expenses for their checkered pants for example as long as they have the receipts handy in case the ATO asks for them.

The ATO said workers who buy, repair or launder occupation-specific or protective clothing or distinctive uniforms can claim back.

But it said ‘conventional’ attire like black pants worn by office workers or waiters cannot be claimed back at tax time.

This includes business suits, a swimming instructor’s swimwear and jeans or drill shirts worn by tradespeople.

GIFTS

Taxpayers can claim deductibles for the gifts and donations they offer to charities, as long as the organisation is registered.

Donations to crowdfunding platforms like GoFundMe cannot be claimed but registered charities like World Vision Australia could be.

The amount you can claim as a deduction depends on the type of gift, for example with gifts of money – you can claim the amount of the gift if it is more than $2.

In some circumstances, you can claim a deduction for gifts and donations to registered political parties or independent candidates.

The most you can claim in an income year is $1,500, the ATO said.

TRANSPORT

You can claim for the costs you incur when you travel between workplaces, to conferences or client meetings.

For motor vehicle expenses it helps if people keep a log book over a three-month period that gives an idea of how much they spend during the year.

You can also claim expenses for the same journeys when using public transport and ride-shares, short-term hire of a car, road and bridge tolls and parking fees.

EDUCATION

Aussies can get deductibles for courses if it relates to their current job but cannot claim if its to gain fresh qualifications for another occupation.

The ATO said parents cannot get money back for child care or school fees.

ATO assistant commissioner Rob Thomson (pictured) warned: ‘We educate those who we think have made a mistake, and ask a few questions of those we think are turning a blind eye to tax law’

WHAT AUSSIES CAN’T CLAIM

The ATO said items like tools and computers used for private purposes can not be claimed.

Mr McLean said he has come across some strange items people try and claim for like socks, jocks and breast enhancement surgery.

A man even attempted to get money back for his daughter’s wedding telling him it’s for ‘all the tax he’s paid in his life’.

A comprehensive list on what cannot be claimed is available on the ATO website.

‘DON’T LEAVE IT TO THE LAST MINUTE’

Mr McLean said Australians should start preparing now for the next tax return so they don’t miss out on future tax benefits.

He urged tax payers to not leave it to the last minute and advised on having an accountant or financial advisor.

A financial advisor can have a look at someone’s super to see how much they can get back leading up to the new financial year.

READ MORE: The staggering amount working Aussies are now paying in tax