ATO’s small business focus for 2022 income year

The ATO announced that it will be focussing on the following matters for small business tax returns for the 2021/22 year:

• Deductions that are private in nature and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a homebased business).
• Omission of business income (e.g., income from the sharing economy or new business ventures).
• Record keeping – including insufficient or non-existent records that are needed to substantiate claims.

The ATO acknowledges that it has been a tough couple of years for many small business owners and encourages taxpayers to act early to find a solution if they are getting behind in their tax obligations, either by contacting their tax agent or the ATO.

Also in this month's update:

• ATO targeting SMSFs that fail to lodge annual returns
• ATO updates ‘cents per kilometre’ rate for individuals
• ATO to target ‘wash sales’ this Tax Time
• Downsizer contributions age changes from 1 July 2022
• Super guarantee contribution due date for June 2022 quarter