As seen in Woopi News May 2026
Every year Australian Taxation Office (ATO) has key areas of focus that they target for auditing. In the 2025-2026 year the ATO has indicated some of their areas of focus will include:
Crypto Assets and the incorrect reporting or omission of income and capital gains/losses. The ATO’s crypto assets data-matching program matches information reported in tax returns with the data reported from service providers.
The Property & Construction Industry have had increased activity in property renovation and subdivision, and the treatment of property disposals are being reviewed, including whether the property is held on capital or revenue account, GST on disposals, non- arm’s length dealings and failure to report income correctly.
Tax Advisors and Professional Firms are being targeted with the focus falling on professional firms who fail to lodge partnership returns or distribution statements, the compliance of allocation of professional firm profits, and professions who promote tax avoidance or exploitation schemes or encourage their clients to take high risk positions that are in conflict with ATO guidance.
The Retail Industry remains a focus with transactions between related entities, omission of sales, misclassification of voucher sales and incorrectly claiming GST credits.
GST Refund Fraud which may include false or exaggerated invoicing or mismatched accounting methods such as those promoted on social media and investigated under Operation Protego with multiple jail sentences.
Using Business Assets for Other Purposes such as directors and associates withdrawing funds from a private company to use for personal purposes or using a company’s car for personal activities.
Short Term Rental Properties have had a tightening of rules on holiday homes meaning some expenses may no longer be deductible where the property is not primarily used for income production. The ATO has produced a Draft Tax Ruling on rental property income and deductions and Compliance Guideline on apportionment of rental property deductions.
Bernadette Morris – StaySharp Accounting
“Liability Limited by a scheme approved under Professional Standards Legislation”
