Social media is full of tax tips, refund hacks and advice that promises to help you maximise your tax return. While some information may be accurate, much of it is misleading—or simply doesn’t apply to your individual circumstances.
This tax time, the Australian Taxation Office (ATO) has made it clear that incorrect claims remain a major focus. Following advice from social media influencers, AI tools or well-meaning friends could result in your tax return being amended, delayed, or even attract penalties if the claims can’t be substantiated.
Remember: You’re Responsible for Your Tax Return
Whether you prepare your own tax return or use a registered tax agent, you’re ultimately responsible for ensuring the information submitted to the ATO is complete and accurate.
Unfortunately, there’s no shortage of poor tax advice circulating online. Viral posts often suggest claiming expenses that aren’t deductible or exaggerate what taxpayers are entitled to claim. While these shortcuts may sound appealing, they can quickly become costly if your return is reviewed.
The best approach is to rely on qualified tax professionals and official ATO guidance rather than internet myths or one-size-fits-all advice.
ATO Focus Area #1: Work-Related Expenses
Work-related deductions continue to be one of the ATO’s biggest compliance priorities.
Before claiming any expense, you should ask yourself three simple questions:
- Was the expense directly related to earning my income?
- Did I personally pay for it without being reimbursed?
- Can I provide evidence, such as a receipt, invoice or logbook, if requested?
If the answer to any of these questions is “no”, the expense is unlikely to be deductible.
Working From Home Claims
Working from home remains common for many Australians, but it’s also an area where mistakes frequently occur.
If you’re using the ATO’s fixed-rate method, you can currently claim 70 cents per hour worked from home. This rate already covers a range of running costs, including:
- Electricity and gas.
- Internet and phone usage.
- Stationery and office consumables. One of the most common errors is “double-dipping”—claiming the fixed-rate method while also separately claiming expenses that are already included in that rate.
Keeping accurate records of your hours worked from home throughout the financial year makes claiming easier and provides the evidence needed if the ATO requests further information.
ATO Focus Area #2: Declaring All Income
The ATO is also paying close attention to omitted income.
Many taxpayers mistakenly believe that income earned outside their primary job doesn’t need to be declared. In reality, all assessable income generally needs to be included in your tax return, including:
- Income from side businesses or freelance work.
- Cash payments.
- Interest earned on bank accounts.
- Rental income.
- Income earned through online or sharing economy platforms.
The ATO now receives information directly from banks, employers, investment providers, property managers and many online platforms through sophisticated data-matching systems. As a result, undeclared income is much easier to detect than many people realise.
Don’t Miss Legitimate Deductions
While the ATO is actively reviewing incorrect claims, it’s equally important not to overlook deductions you’re genuinely entitled to claim.
Many occupations have industry-specific deductions that taxpayers simply aren’t aware of. Taking the time to review your eligible deductions—or speaking with a registered tax professional—can help ensure you’re claiming everything you’re legally entitled to without risking compliance issues.
The Bottom Line
If a tax tip sounds too good to be true, it probably is.
Rather than relying on social media trends or online “tax hacks”, ensure your tax return is based on accurate records, legitimate deductions and professional advice.
A correctly prepared tax return not only reduces the risk of ATO scrutiny but also gives you confidence that you’ve claimed everything you’re entitled to—nothing more and nothing less.
If you’d like expert guidance this tax time, our team at Dymond Foulds & Vaughan is here to help you prepare an accurate, compliant tax return while maximising your legitimate deductions.