ATO Tax Time Hitlist 2025: What the ATO Is Watching This Year

‍

Stay Aware. Stay Compliant. Maximise Your Tax Refund with Trinity Accounting Practice

‍

The 2025 tax season is here, and the Australian Taxation Office (ATO) has released its annual compliance hitlist. This year, the ATO is sharpening its focus on work-related expenses, rental property deductions, cryptocurrency transactions, side hustle income, and more.

If you want to avoid penalties and make the most of your deductions, now is the time to get your records in order and partner with professionals like Trinity Accounting Practice—your local experts since 2003.

‍

What Is the ATO Tax Time Hitlist?

The ATO tax time hitlist is a yearly statement from the ATO outlining key areas of concern based on data mismatches, incorrect claims, and audit trends. These focus areas are chosen because they are either highly error-prone or commonly misused.

The 2025 hitlist focuses on:

• Work-from-home expense claims
• Rental property income and deductions
• Cryptocurrency and digital asset gains
• Side hustle and freelance income
• Capital gains on shares and property
• Super guarantee obligations
• Lifestyle vs declared income mismatch

‍

Why You Should Take the 2025 ATO Hitlist Seriously

• Data-matching is stronger than ever: The ATO compares your lodged return with banks, employers, sharing economy platforms, crypto exchanges, and even state government agencies.
• AI flags your return: Artificial intelligence now reviews your deductions against industry benchmarks, occupation codes, and past tax returns.
• Penalties can add up quickly: Incorrect claims may trigger audits, penalties of up to 75%, interest charges, or delayed refunds.

‍

‍

Key ATO Focus Areas in 2025 and How to Stay Compliant

‍

1. Work-Related Expense Deductions

What the ATO Is Watching:

• Overclaimed home office expenses
• Incorrect use of the 67c fixed rate method
• Lack of evidence for internet, phone, or electricity usage

What You Must Do:

• Maintain a logbook of hours worked from home
• Keep receipts or digital records for work-related costs
• Use a consistent and fair method to split business vs personal use

Trinity Tip: We help you choose the most tax-effective method—actual cost or fixed rate—and ensure your claim is bulletproof.

‍

2. Rental Property Income and Deductions

What the ATO Is Watching:

• Incorrect deduction of interest on loans
• Capital improvements claimed as repairs
• Holiday homes incorrectly declared as fully available for rent

What You Must Do:

• Declare all rental income, including Airbnb and short-term lettings
• Differentiate repairs (immediate deduction) from improvements (capitalised)
• Pro-rata deductions based on actual availability

Trinity Tip: Our team provides tailored rental property schedules and identifies red flags before they reach the ATO.

‍

3. Cryptocurrency Transactions and Capital Gains

What the ATO Is Watching:

• Undeclared gains from crypto sales, swaps, or staking
• Incorrect valuation or purchase dates
• Transfers between wallets being treated as tax-free

What You Must Do:

• Report every disposal: sales, swaps, payments using crypto
• Keep detailed transaction history with AUD values
• Declare airdrops, forks, and staking rewards

Trinity Tip: We help crypto investors decode ATO guidelines and lodge accurate crypto tax returns.

‍

4. Side Hustle and Gig Economy Income

What the ATO Is Watching:

• Income from Uber, DoorDash, Fiverr, Etsy, eBay, and Facebook Marketplace
• Freelance work that’s undeclared
• GST registration avoidance by high-earning side hustlers

What You Must Do:

• Report all income, even from hobbies or weekend gigs
• Register for an ABN if you’re running a business
• Register for GST if your income exceeds $75,000 annually

Trinity Tip: We structure your side hustle properly and help you claim eligible business expenses.

‍

5. Capital Gains on Shares and Property

What the ATO Is Watching:

• Shares, ETFs, and crypto sold without CGT reporting
• Misuse of the CGT discount
• Failure to report inheritance or investment property sales

What You Must Do:

• Declare every sale or transfer of assets
• Apply the CGT discount only if you’ve held the asset for 12+ months
• Keep contracts, costs, and legal fees on file for every asset

Trinity Tip: We apply CGT discounts and exemptions legally and help you maximise after-tax profits.

‍

6. Superannuation Guarantee (SG) Obligations

What the ATO Is Watching:

• Late super payments
• Paying super for employees incorrectly classified as contractors
• Missing Super Guarantee Charge (SGC) statements

What You Must Do:

• Pay super at least quarterly by the deadline
• Assess whether your contractors are legally employees
• Lodge SGC forms if you miss a payment

Trinity Tip: We fully manage your payroll, super calculations, and compliance reporting.

‍

7. Lifestyle Mismatch and Income Reporting

What the ATO Is Watching:

• Your reported income vs your spending habits (luxury cars, property, travel)
• Undeclared income from cash jobs or offshore accounts
• Suspicious deductions that don’t match your occupation

What You Must Do:

• Accurately declare all income from every source
• Understand the ATO’s industry benchmarks
• Avoid overclaiming deductions inconsistent with your work

Trinity Tip: We flag risks in your return before the ATO does and offer proactive strategies.

‍

‍

Bonus: Extra Areas the ATO May Review in 2025

• Family Trust Distributions: Ensure proper documentation and tax treatment.
• Division 7A Loans: Treat shareholder loans correctly to avoid unintended tax.
• Fringe Benefits Tax: Applicable for company cars, laptops, or staff perks.

‍

‍

How to Protect Yourself from the ATO in 2025

✅ Use a Registered Tax Agent

Working with Trinity Accounting Practice means your return is handled by experienced professionals who understand the rules, thresholds, and pitfalls. This greatly reduces audit risk.

✅ Keep Digital Records All Year

Gone are the days of shoeboxes. We help you use apps, cloud storage, and accounting software to organise receipts, logs, and invoices year-round.

✅ Don’t Copy and Paste Last Year’s Return

Tax laws change annually. What worked in 2024 may trigger a red flag in 2025. We review your return line by line to avoid errors.

‍

Why Choose Trinity Accounting Practice?

• ✅ Trusted Accountants since 2003
• ✅ ATO Audit Representation & Dispute Support
• ✅ Registered Tax Agent with experience across all industries
• ✅ Expertise in Crypto, Rental Property, Tradies, Medical, Childcare, and E-commerce
• ✅ Transparent pricing and obligation-free consultations

‍

‍

Let’s Lodge It Right the First Time

If you are serious about lodging a compliant, maximised tax return in 2025, do not go it alone. With ATO audit activity increasing across industries, it's more important than ever to work with a professional who knows the rules.

‍

Trinity Accounting Practice is here to support you with expert tax advice, personalised service, and full transparency every step of the way.

‍

👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available
📅 Booking Link: https://calendly.com/ramy-hanna

‍