ATO Tax Time 2022 resources are available now

Record-keeping

The ATO will take ‘firm action” to address taxpayers who intentionally try to increase their refunds, falsify records, or can’t support their claims.

This information contains possible penalties for misleading or false statements and not meeting record-keeping requirements.

Costs related to work

Some people are now working in a hybrid environment, i.e., Since the outbreak of the pandemic in Australia, one-third of Australians claimed that they were working from home from 2020-21.

The ATO would expect an equivalent reduction in car, clothing, and other expenses related to work if a taxpayer continues to work from home.

There are three ways to calculate a deduction for working at home expenses.

1. The fixed-rate method — A rate of 52c per hour to cover additional running costs incurred due to working from home. Depreciation related to work, phone, internet, and data expenses is also deductible.
2. Actual Cost Method — The extra expenses incurred from working from home.
3. Temporary Shortcut Method – An all-inclusive 80c per hour rate available only from 1 March 2020 through 30 June 2022

The ATO reminds taxpayers of the following:

• If the working arrangements of the taxpayer have changed, do not copy and paste the previous year’s claims.
• The taxpayer could not claim the work-related portion of the expense was used for work-related or private purposes.

Tax agents can send records to taxpayers who have kept track of their expenses using the ATO app’s deductions tool.

Rent property income and deductions

All income received from rental properties must be included, including any short-term rental arrangements and insurance payouts.

The ATO warns that it might delay processing a refund if it detects a discrepancy. It may contact the taxpayer, or their registered agent tax, to correct the return or request documentation to support the claims.

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Capital gains from crypto assets, shares, and property

The taxpayer will have to disclose any capital gains or losses they make when disposing of property, shares or crypto assets and calculate them.

The ATO has data that shows many Australians are trading, buying and selling digital assets. This year, the ATO anticipates more capital gains and capital losses. The ATO reminds taxpayers that crypto losses (capital loss) cannot be offset against their wages and salary.

Materials for Tax Time 2022

Tax Time 2022 includes the following guidance to tax professionals.

Overview of the key changes

The following are the key changes that will affect tax returns for 2022:

• COVID-19 Disaster payments are exempted from income tax
• Payments for pandemic-related disasters are possible.
• COVID-19-related expenses for work purposes can be deducted.
• Changes to the R&D tax incentive and film tax offsets
• The cessation or enhancement of instant asset write-off incentives and backing business investment led to removing capital allowances labels.
• Other changes to tax return label item items

Get ready for tax time.

The ATO recommends tax agents prepare for Tax Time 2022.

• Update their client list
• Check the due dates for their lodgment programs.
• If a return is not necessary, notify the ATO.
• Review security measures to prevent fraud.

By the end of July 2022, online services for agents will have access to the lodgment due dates.

The ATO will begin processing tax returns for 2021-22 on July 20,22. Refunds are expected to be made by 16 July 2022.

The ATO strives to process most electronic tax returns for the current year within 12 business days. Processing time for paper tax returns can take up to 50 business days.

The ATO will provide information on the status of tax returns for clients in various ways.

• A weekly status email for tax returns
• You can track the progress of Online services for agents
• The ATO sent a confirmation SMS to clients.

Toolkits for Tax Time

Educational resources are tailored to individuals and small businesses in many languages. There are a variety of resources, including a series of occupational guides, an Individuals tax time toolkit, an Investors toolkit, small business guides, and a Small Business tax time toolkit.