Global Daily Tax News, Australian Tax Agency Issues Warning This Tax Time, (Apr 28, 2026)

The Australian Taxation Office has issued a warning to taxpayers to avoid errors and omissions during this tax season.

The agency has said it will be focusing on areas where taxpayers are likely to make errors, including work-related deductions and expenses, and omitted income.

The ATO said taxpayers should declare all sources of income on their tax return, including "side-hustles", cash jobs, interest, and rental income.

"There are different deductions available for each source of income depending on the nature of the income and occupation," said ATO Assistant Commissioner Anita Challen. "People may be surprised to learn what they can claim, so it's worth checking the ATO's occupation and industry specific guides or talking to a registered tax professional so you can claim all you're entitled to."

"We understand apportioning expenses can be tricky but don't fall into the trap of thinking if you intentionally claim a little more than you are entitled to, it'll fly under the radar and that the ATO won't notice."

She highlighted that work-related expenses must relate to the taxpayer earning income, the taxpayer must have spent the money and must not have been reimbursed, and the taxpayer should retain records, such as a receipt, invoice, or logbook.

Taxpayers can calculate deductions from working at home using one of two methods, the ATO said:

• the actual cost method, which requires records of all the expenses that are being claimed and the work-related use of these expenses to substantiate the deduction; and

• the fixed rate method, which allows taxpayers to claim AUD0.70 for every hour worked from home.

Challen further said taxpayers should think twice before acting on information from third-party sources, such as artificial intelligence (AI) platforms, "finfluencers", or advice from family or friends.

"In an environment where misinformation can spread within minutes, it's important to pause and check your tax information before you act on it, for example when you go to lodge your tax return. If a tax claim sounds too good to be true, it's worth checking."

"AI can be helpful, but it often draws from a broad and inconsistent range of sources, which can lead to inaccurate advice. For example, it could be drawing content about tax obligations or laws from outside of Australia or outdated sources. Your tax return isn't the place for guesswork."

"Tax misinformation often sounds convincing, but dodgy tax advice doesn't just mislead - it can also lead to significant penalties," Challen said.

Taxpayers who have questions about the legitimacy of tax information should refer to the ATO's website, the ATO app, or speak to a registered tax professional, the ATO said.