Crypto, NFTs in sight when ATO cracks down on the digital economy

If there is no capital gain to offset losses, the investor may declare a loss in profit and carry it forward to offset future capital gains.

Data match

The transition to a digital economy and the abandonment of cash, accelerated by the COVID-19 pandemic, makes it easier for the ATO to follow in the footsteps of taxpayers.

Now it is information about the coincidence of data not only from banks and insurers, but also from industries such as amusement companies and online markets, including those that offer housing or vacation rentals.

ATO data are consistent with cryptocurrency from information provided by exchanges, Luo says.

Labor-related costs

Since the start of the pandemic, more and more people have worked from home, and one in three taxpayers has declared the cost of work at home (WFH) in their tax return last year.

WFH’s costs are likely to be higher again this fiscal year, but ATO expects other work-related costs to be lower; including vehicles, clothing and things like parking and fares.

There are three ways to claim WFH costs:

• Label method: a a fixed rate of 80 ¢ per hour multiply by the number of hours worked at home. It’s all inclusive – you can’t claim any other expenses for work at home.
• Fixed rate method: you claim a a fixed rate of 52 ¢ per hour you worked from home. It covers costs such as electricity and gas for heating, cooling and lighting, but you can make additional claims such as costs for telephone, data and internet.
• Actual cost method: you expect actual costs you make a profit if WFH, provided you meet the requirements of law and record keeping.

Scams, filing dates

Luo says taxpayers should beware of tax fraud.

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In the ATO there are scams using fake tax number applications, where the fraudster offers to help the taxpayer get a number for a fee. However, instead of providing information to the taxpayer, money and personal information are stolen.

There is also a similar scam involving Australian business numbers.

Many of these scams appear on social networking platforms.

Taxpayers should not disclose personal information if they cannot verify who they are dealing with.

Those who fill out the annual tax return must file it by October 31.

Taxpayers who use registered agents (provided they do not have unresolved issues with the ATO) must file a return by mid-May of the following year if they have registered with the agent by the end of October.

Four out of five people receive a tax refund. “If you don’t fall, come back [could be] leaving money on the table, – says Lo.