A quick scroll through social media can make tax time look easy. Claims of “tax hacks”, shortcut deductions and bigger refunds are everywhere, but following the wrong advice can lead to trouble.

The ATO has made it clear that it is watching closely for incorrect or misleading claims this tax time. This includes claims based on advice from social media “finfluencers”, online forums, AI tools, family members or friends. While some tips may sound convincing, they may not apply to your circumstances.

The important thing to remember is that you are responsible for what goes into your tax return. Taxpayers must ensure the information provided to the ATO is accurate, regardless of where the advice came from. If a claim cannot be substantiated, penalties and interest may apply.

Focus Area 1; Work-related Expenses

Work-related deductions are once again under the ATO’s microscope. To claim a deduction, the expense generally needs to meet three key tests:

• It must directly relate to earning your income
• You must have paid for it yourself and not been reimbursed
• You must have a record, such as a receipt, invoice or logbook, to support the claim

Focus Area 2; Omitted Income

The ATO is also reminding taxpayers to declare all sources of income, not just salary and wages.

This includes income from side hustles, cash jobs, interest, rental properties, dividends, crypto, share trading and online platforms. With data matching now extending across banks, sharing economy platforms and property managers, undeclared income is more visible to the ATO than many people realise.

The upside is that legitimate deductions are often broader than expected. The ATO’s occupation and industry guides, along with professional advice, can help identify what you may be entitled to claim.

The main message is simple: be cautious of tax tips that sound too good to be true. Good record keeping, accurate reporting and properly substantiated claims remain the best way to avoid problems with the ATO.