Given the trillion-dollar National debt, the ATO is on an even greater quest to garner funds
and audit (review) is becoming even more of a focus for them.
When we think of an audit, we tend to think of a full-blown desk audit with ATO officers present
etc. – however these audits are rare, with most targeted to a specific item, such as a discrepancy
in the BAS, repairs and maintenance for a rental property, or a car claim.
With Artificial Intelligence and data matching on their side and watching social media, it is
incredible just how much information the ATO has.
Cryptocurrency is on their radar, and they are threatening to audit working from home expenses given this is now a large deduction in returns.
When we receive audit notifications from the ATO, we always breathe a sigh of relief when we see our client has insurance in place. Even for seemingly simple reviews, going through an audit is onerous – with source documentation needing to be provided, explanations made, and multiple communications with the Tax Office. Some ATO officers make a review a very stressful exercise.
It can be expensive and even if the claim is correct, accounting and/or specialist fees can add up.
To this end, we have, in the last week, sent an offer to gain audit insurance to our entities and clients with
investment properties. The Insurance company we work with is Audit Shield.
We would however recommend that if you have cryptocurrency, expect a capital gain, have high work
related expenses, or a car claim, that you take up the offer as the premium is just $165 for a couple and covers prior years as well.
