ATO’s Focus for 2020-2021

The government has extended its temporary shortcut method for calculating working from home expenses that was implemented due to COVID. You simply need to keep a record (through diary entries, timesheets, or roster) of the number of hours per week worked form home. The method is all inclusive, so it covers all your running costs, cleaning, cooling, heating, lighting, internet, telephone, and depreciation of home office equipment like laptops.

With April 2021 ABS figures show 36% of people working at least one day a week from home, it looks like this trend will continue. 



The ATO’s scrutiny of work-related expenses has been beneficial as claims fall by $1bn as a result of this focus. They will continue to look at individuals who have deductions much higher than others with a similar job and income and also those who simply copy and past previous year’s claims without evidence. In short, if you have evidence for your claim, you have nothing to fear.

The ATO have an app called ‘My Deductions’ which can be used to track expenses throughout the year and can be shared with tax agents.

The concern is many taxpayers think cryptocurrency gains are tax-free, above the law, or only taxable when converted to Australian dollars. If you are buying, gifting, or trading between cryptocurrencies, we recommend discussing this with us as this may need to be included in your tax return. 

The Australian Taxation Office (ATO) cryptocurrency data-matching program has been in place since April 2019. Under the program, we have collected data on cryptocurrency transactions for the 2014-15 to 2019-20 financial years. The ATO are now collecting data up to and including the 2022-2023 financial year. 

This year the ATO will write to 100,000 taxpayers with cryptocurrency assets to explain their tax obligations and ask them to review previous returns. Some 300,000 taxpayers will also be prompted to report CGT gains and losses.