The Australian Taxation Office (ATO) is warning the community to be wary of incorrect or misleading information this tax time, particularly claims promising greater refunds, shortcuts or hacks. The ATO is seeing a rise in tax-related content and ‘tips’ being shared - especially online - and is urging taxpayers to treat unverified advice with caution. ATO Assistant Commissioner Anita Challen says Australians should think twice before acting on information from third-party sources such as artificial intelligence (AI) platforms, ‘finfluencers’, or advice from family or friends. "In an environment where misinformation can spread within minutes, it’s important to pause and check your tax information before you act on it, for example when you go to lodge your tax return. If a tax claim sounds too good to be true, it’s worth checking," Ms Challen said. "AI can be helpful, but it often draws from a broad and inconsistent range of sources, which can lead to inaccurate advice. For example, it could be drawing content about tax obligations or laws from outside of Australia or outdated sources. Your tax return isn’t the place for guesswork." Taxpayers who have questions about the legitimacy of tax information should refer to the ATO’s website, the ATO app or speak to a registered tax professional. "Tax misinformation often sounds convincing, but dodgy tax advice doesn’t just mislead - it can also lead to significant penalties," Ms Challen said. "Taxpayers remain accountable for ensuring the information they or their agents provide to the ATO is accurate – whether the advice came from a friend, online sources, or if AI tools were used in its preparation. "Getting it right upfront prevents delays, incorrect claims and the need for amendments or ATO compliance action." Tax time focus areas revealed This tax time, the ATO will focus on areas where taxpayers are likely to make errors including work-related deductions and expenses, and omitted income. "We understand apportioning expenses can be tricky but don’t fall into the trap of thinking if you intentionally claim a little more than you are entitled to, it’ll fly under the radar and that the ATO won’t notice," Ms Challen said. "Remember our three golden rules: Work-related expenses must relate to earning your income, you must have spent the money yourself and not have been reimbursed, and you have to be able to support your claim with records such as a receipt, invoice or logbook." Taxpayers can calculate deductions occurred from working at home using two methods: * The actual cost method which requires records of all the expenses that are being claimed and the work-related use of these expenses to substantiate the deduction. * The fixed rate method which allows taxpayers to claim 70 cents for every hour worked from home and covers additional running expenses that are often difficult to apportion, like internet, phone usage, electricity and stationery. "If you think you’ve overclaimed your work-related expenses in previous years, you need to lodge an amendment or speak to your tax professional and ask them to amend your prior year claims," Ms Challen said. Taxpayers can make lodging easier by using the myDeductions feature in the ATO app to record expenses and share them directly with their tax professional or upload them to form part of their pre-fill information. The ATO is also reminding taxpayers to declare all sources of income on their tax return including side-hustles, cash jobs, interest and rental income. "There are different deductions available for each source of income depending on the nature of the income and occupation," Ms Challen said. "People may be surprised to learn what they can claim so it’s worth checking the ATO’s occupation and industry specific guides or talking to a registered tax professional so you can claim all you’re entitled to." Some quirky but legitimate work-related deductions that can be claimed include: * A flight attendant may be able to claim very specific footwear if it is an enforced requirement of their employer. * Guards and security workers may be able to claim guard dog expenses. * Fitness and sporting industry employees may be able to claim sunscreen, hats and sunglasses where their duties require prolonged periods working outdoors. * Hairdressers and beauty professionals may be able to claim professional-grade scissors. With Payday Super taking effect from 1 July 2026, tax time is also a great opportunity for taxpayers to check their super and all their details are up to date to ensure they are receiving their full entitlements from all employers. The ATO has a range of support services available to the community during tax time including Tax Help program, National Tax Clinic program, ATO Community, translated tax time resources and an Indigenous helpline.
