ATO’s 3 key focus areas for this Tax Time

ATO Watch List 22/2023


A reminder that the ATO has announced that its 3 key focus areas for this Tax Time are:

  • rental property deductions;
  • work-related expenses;
  • and capital gains tax (CGT)


The ATO is continuing to prioritise areas where they often see mistakes being made and by addressing these hope to support taxpayers in getting their claims right this year.


Rental Property Deductions

In relation to “rental property” deductions the ATO said that its review of income tax returns show 9 in 10 rental property owners are getting their return wrong. Rental income is often being left out, or mistakes are being made with property related deductions such as overclaiming expenses or claiming for improvements to private properties.

The ATO is particularly focused on interest expenses and ensuring rental property owners understand how to correctly apportion loan interest expenses where part of the loan was used for private purposes (or the loan was re-financed with some private purpose).

For more information visit


Work Related Expenses

Avoid the ‘copy-paste’ method from prior years as there have been changes in how deductions can be calculated, in particularly working from home expenses.
The ATO knows a lot of people are working back in the office this year so ensure you understand the changes to the working from home methods and are able to back up your claims.


Capital Gains Tax (CGT)

Capital gains tax (CGT) comes into effect when you dispose of assets such as shares, crypto, managed investments or properties. To ensure you are meeting your obligations and paying the right amount of tax, you need to calculate a capital gain or capital loss for each asset you dispose of unless an exemption applies.

The ATO warn taxpayers not “to fall into the trap of thinking we won’t notice if you sell an asset for a gain and don’t declare it”.

For more information visit


If you have any questions, contact our team on 8418 2111 so we can work with you to deliver the best outcome for your circumstances.