What individuals and businesses should know to stay compliant
As we dive into the 2025 tax season, the Australian Taxation Office (ATO) has made it clear certain behaviours and deductions are under the microscope. Whether you’re an employee, sole trader, investor, or business owner, understanding the ATO’s priorities this year can help you avoid unnecessary audits, penalties, and stress.
At Pisani Group, we believe that awareness is the first step to compliance. Here’s a breakdown of the ATO’s 2025 watchlist and how you can stay ahead of the curve.
Work-Related Expenses
Claiming more than you’re entitled to? Think again.
Work-related deductions continue to be a hot spot, especially as flexible and hybrid work arrangements remain the norm. The ATO is cracking down on:
Overclaiming home office expenses
Claiming travel or clothing deductions without proper records
Duplicating claims for items used both personally and professionally
Tip: Ensure your claims are directly related to your income, and always keep detailed records such as receipts and logbooks.
Rental Property Deductions
Property owners are under the spotlight.
If you own an investment property, this is the year to be extra cautious. The ATO is focusing on:
- Incorrect apportionment of loan interest
- Inflated repairs and maintenance deductions
- Misreporting rental income (especially Airbnb and short stays)
Tip: Work with a tax professional who understands property tax rules and can help you differentiate between capital improvements and immediate deductions.
Capital Gains from Crypto, Shares & Property
The ATO knows more than you think.
With data matching technology in full swing, the ATO is tracking transactions across crypto exchanges, share platforms, and property transfers. If you’ve sold or traded digital assets, shares, or real estate, it’s your responsibility to report gains or losses.
Tip: Keep records of acquisition and disposal dates, costs, and fees. Don’t assume “small” crypto activity will fly under the radar.
Side Hustles & Gig Economy Income
The ATO is chasing undeclared income from online platforms.
From food delivery to online stores and freelancing, gig economy income must be reported. The ATO is monitoring platforms like Uber, Airbnb, Etsy, and others so undeclared income won’t go unnoticed.
Tip: If you’re earning extra income outside of your main job, it needs to be declared. Consider registering for an ABN and GST if required.
Small Business Record-Keeping & BAS Reporting
Accurate reporting is non-negotiable.
The ATO continues to target businesses not meeting their obligations around:
BAS (Business Activity Statement) accuracy
Employee superannuation and PAYG withholding
Cash income not being reported
Tip: Maintain up-to-date records using cloud accounting tools. Review your BAS and payroll entries regularly or let Pisani Group do it for you.
Incorrect Use of Deductions and Offsets
Don’t rely on outdated or second-hand advice.
Many taxpayers unintentionally get into trouble by copying someone else’s deductions or relying on outdated tips. The ATO is tightening its data-matching efforts to catch misapplied offsets and deductions.
Tip: If you’re unsure whether you’re eligible for a tax offset or deduction, seek professional advice before you lodge.
Stay One Step Ahead with Pisani Group
The ATO isn’t just watching. It’s acting. But with the right advice and proactive planning, you can meet your obligations with confidence.
At Pisani Group, our team of tax professionals is here to support individuals, families, and businesses through the 2025 tax season. We’ll help you navigate ATO expectations, maximise legitimate deductions, and avoid red flags.
Book a consultation with us today and ensure your tax return is accurate, compliant, and stress-free.
