As a Tax Accountant Hobart business, we often see the same tax return mistakes repeated year after year. Most aren’t deliberate attempts to do the wrong thing. They’re usually caused by rushed lodgements, poor record keeping, or misunderstandings about what can and can’t be claimed.
With tax time approaching, it’s worth taking a few minutes to review some of the most common mistakes that can attract unwanted attention from the Australian Taxation Office (ATO).
1. Claiming Expenses Without Proper Records
One of the biggest mistakes taxpayers make is claiming deductions without keeping adequate records.
The ATO requires evidence to support most claims, and while many people assume a bank statement is enough, that’s not always the case. In many situations, you’ll need receipts, invoices, logbooks, or other supporting documentation.
Good record keeping throughout the year can save a lot of stress when it’s time to lodge your return.
For guidance on record keeping requirements, the Australian Government provides useful information through the Business.gov.au Record Keeping Guide.
2. Mixing Personal and Work Expenses
Another common issue occurs when personal expenses are accidentally included as work-related deductions.
This can happen with:
- Motor vehicle expenses
- Mobile phone bills
- Internet services
- Home office costs
If an expense is used for both work and personal purposes, only the work-related portion can generally be claimed. Keeping accurate records and calculating the business or work-related percentage correctly is essential.
3. Guessing Work-From-Home Claims
Working from home has become increasingly common, but many taxpayers still make mistakes when claiming home office expenses.
Simply estimating the number of hours worked or applying a rough calculation can create problems if the figures can’t be supported.
The ATO expects taxpayers to maintain records that support their claims, including work patterns and relevant expenses. Taking shortcuts may seem convenient at the time but can create difficulties if questions arise later.
4. Forgetting Additional Sources of Income
Many people assume their employer reports everything the ATO needs to know.
However, additional income can sometimes be overlooked, including:
- Interest earned on savings accounts
- Investment income
- Contracting or freelance work
- Online sales activities
- Side businesses
The ATO receives information from multiple sources and increasingly uses sophisticated data matching systems. Forgetting income, even unintentionally, can lead to amendments, penalties, or additional tax assessments.
5. Rushing Your Tax Return
Perhaps the most common mistake of all is simply rushing to get the return lodged as quickly as possible.
When people feel pressured, they are more likely to:
- Miss income
- Overlook deductions
- Enter incorrect figures
- Forget supporting documents
Taking a little extra time to ensure everything is accurate can prevent significant headaches later.
Getting It Right The First Time
As Hills Accounting Hobart, we regularly help clients identify potential issues before their tax returns are lodged. In many cases, a quick review can uncover missing information, incorrect claims, or opportunities to maximise legitimate deductions.
Getting it right now is usually far easier—and often far less stressful—than trying to fix mistakes later.
If you’d like assistance with your tax return this year, contact the team at Hills Accounting Hobart and let us help make tax time a little easier.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs.
For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.
Talk to Kathy and the team today
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Call 📞 03 6273 7800,
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