HomeBlog › 2022 Tax Time Tips

2022 Tax Time Tips

2022 Tax Time Tips


As we reach the end of the 2022 financial year, we would like to provide some important tax tips to keep in mind when preparing information for preparation of your tax return.


The ATO will start processing 2021-22 tax returns from 7 July 2022, and expect to start paying refunds from 16 July 2022. Please note that most returns will only be able to be processed by us once all prefill information has been finalised, which will likely occur in late July.

The Australian Taxation Office (ATO) has revealed its four areas of focus this tax season.

1. Record-keeping 

The most important point to remember when preparing your information is that you can’t claim it if you can’t prove it. If you are audited, the ATO will disallow deductions for unsubstantiated or unreasonable expenses. Even if the expense is below the substantiation threshold of $300 ($150 for laundry), the ATO may ask how you came up with that number.

Records can be tax invoices, receipts, diary entries or something else that proves you incurred the expense and how it related to how you earn your income.

2. Work-related expenses
To claim a deduction, you need to have incurred the expense yourself and not been reimbursed by your employer or business, and the expense needs to be directly related to your work.

Please remember there must be a nexus between the expenses you are claiming and how you earn your income.

One area to be aware of is where expenses are incurred for work purposes but used privately. Internet access or mobile phone services are common examples of this. If you use the service on more than an ad-hoc basis for any purpose other than work, then the expense needs to be apportioned and only the work-related percentage claimed as a deduction. And yes, the ATO does check usage in an audit.

Claims for COVID-19 tests will be a test of this rule. COVID-19 tests are deductible from 1 July 2021 if the purpose was to determine whether you may attend or remain at work. The tax deduction does not apply if you worked from home and didn’t intend to attend your workplace, or the test was used for private purposes (for example, to tests the kids before school).

Last financial year, one in three Australians claimed working from home expenses. Now we’re out of the pandemic, the ATO will be focussing specifically on what is being claimed. If you claimed work from home expenses last year and returned to the office this year, then this should be reflected in your work from home claim.

If you are claiming work from home expenses, there are three methods you can use:

  • The ATO’s simplified 80 cents per hour short-cut method – you can claim 80 cents for every hour you worked from home from 1 March 2020 to 30 June 2022. You will need to have evidence of hours worked like a timesheet or diary. The rate covers all of your expenses and you cannot claim individual items separately, such as office furniture or a computer.
  • Fixed rate 52 cents per hour method – applies if you have set up a home office but are not running a business from home. You can claim 52 cents for every hour and this covers the running expenses of your home. You can claim your phone, internet, or the decline in value of equipment separately.
  • Actual expenses method – you can claim the actual expenses you incur (and reduce the claim by any personal use and use by other family members). You will need to ensure you have kept records such as receipts to use this method.

It’s the actual method that the ATO is scrutinising because people using this method tend to lodge much higher claims in their tax return. Ineligible expenses include:

  • Personal expenses such as coffee, tea and toilet paper
  • Expenses related to a child’s education, such as online learning courses or laptops
  • Claiming large expenses upfront (instead of claiming depreciation for assets), and
  • Occupancy expenses such as rent, mortgage interest, property insurance, and land taxes and rates, that cannot generally be claimed by employees working from home (especially by those who are working from home solely due to a lockdown).

3. Rental property income and deductions
The focus for rental property owners should be to ensure that all income received, whether long-term, short-term, rental bonds, back payments, or insurance pay-outs, are recognised in your tax return.

Co-owned properties:

For tax purposes, rental income and expenses need to be recognised in line with the legal ownership of the property, except in very limited circumstances where it can be shown that the equitable interest in the property is different from the legal title. 

This means that if you hold a 25% legal interest in a property then you should recognise 25% of the rental income and rental expenses in your tax returns even if you pay most or all of the rental property expenses (the ATO would treat this as a private arrangement between the owners).

The main exception is where the parties have separately borrowed money to acquire their interest in the property, then they would claim their own interest deductions.

4. Capital gains from crypto assets, property, and shares
If you dispose of an asset - property, shares, crypto or NFTs, collectables (costing $500 or more) - you will need to calculate the capital gain or loss and record this in your tax return. Capital gains tax (CGT) does not apply to personal use assets (such as a boat) that were purchased for less than $10,000.

Crypto and capital gains tax:

A question that often comes up is when do I pay tax on cryptocurrency?

Generally, a CGT event occurs when disposing of cryptocurrency. This can include selling cryptocurrency for a fiat currency (e.g., $AUD), exchanging one cryptocurrency for another, gifting it, trading it, or using it to pay for goods or services.

Each cryptocurrency is a separate asset for CGT purposes. When you dispose of one cryptocurrency to acquire another, you are disposing of one CGT asset and acquiring another CGT asset. This triggers a taxing event.

Transferring cryptocurrency from one wallet to another is not a CGT disposal if you maintain ownership of the coin.

Record keeping is extremely important – you need receipts and details of the type of coin, purchase price, date and time of transactions in Australian dollars, records for any exchanges, digital wallet and keys, and what has been paid in commissions or brokerage fees, and records of tax agent, accountant and legal costs. The ATO regularly runs data matching projects, and has access to the data from many crypto platforms and banks.

If you make a loss on cryptocurrency, you can generally only claim the loss as a deduction if you are in the business of trading.

Where tax reports are available from cryptocurrency platforms, we request that clients provide these.  If they are not available directly from the platforms, we recommend subscribing to a service that can produce tax reports from your platform information.

If you have any questions on any of the above, or any other income or deduction areas, please do not hesitate to contact us to discuss further.