What the ATO Is Watching Closely This Financial Year

As we kick off the new financial year, it’s more important than ever to make sure your business finances are in order.

The Australian Taxation Office (ATO) has outlined several key focus areas for tax compliance and staying informed can help you avoid penalties and stay ahead.

Here’s what the ATO is paying close attention to:

1. Business vs Personal Expenses

Make sure personal spending isn’t being claimed as a business deduction, this is a big red flag.

2. Digital Assets (like crypto)

Crypto trading and digital investments are under increased scrutiny. Accurate record-keeping is a must.

3. Work-from-Home Deductions

With new methods and rates in place, ensure you’re using the correct approach for home office claims.

4. Rental Property Deductions

Only legitimate rental expenses can be claimed which means no mixing of private use or inflated repair claims.

5. Capital Gains Tax (CGT) Concessions for Small Business

Ensure you meet all the eligibility criteria before claiming any CGT small business concessions.

6. Division 7A Compliance

If your business has loans between private companies and shareholders, be sure they’re properly structured and compliant.

7. Gig Economy Income

Income from Uber, Airbnb, Airtasker and similar platforms must be declared, no exceptions.

8. PAYG Instalment Accuracy

The ATO is checking if your instalments truly reflect your earnings. 

9. Super Guarantee Obligations

The Super Guarantee rate has officially increased to 12% from 1 July 2025. Make sure you’re applying the new rate to all eligible wages.

Staying proactive now can save you from costly mistakes later. Need help making sure your business is compliant? We’re here to support you