ATO Warns Australians Against Tax Misinformation as Filing Season Begins

CANBERRA – The Australian Taxation Office (ATO) is urging Australians to exercise caution during the tax filing season, warning of a growing wave of misleading advice circulating online, including so-called “tax hacks” and refund-maximising tips.
ATO Assistant Commissioner Anita Challen said the rise in tax-related content—particularly on social media and artificial intelligence platforms—has increased the risk of taxpayers relying on inaccurate or outdated information.

“In an environment where misinformation can spread rapidly, it’s important for taxpayers to verify information before acting on it,” Challen said. “If a claim appears too good to be true, it is worth checking.”'

The ATO warned that while AI tools can be useful, they may draw on inconsistent or non-Australian sources, potentially leading to incorrect guidance.
Challen stressed that taxpayers remain legally responsible for the accuracy of their returns, regardless of whether the information was sourced from friends, online platforms or AI tools.

“Incorrect claims can result in penalties, delays or compliance action,” she said.
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The ATO has identified common areas where errors are likely to occur, including work-related deductions and undeclared income.
Taxpayers are being reminded to follow three core principles when claiming deductions:
The expense must be directly related to earning income
The taxpayer must have paid for it personally and not been reimbursed
Claims must be supported by proper records such as receipts or logbooks

For those working from home, the ATO outlined two methods for calculating deductions:
Actual cost method – requires detailed records of all expenses and their work-related use
Fixed rate method – allows a claim of 70 cents per hour worked from home, covering costs such as electricity, internet and phone usage

The tax authority also emphasised the importance of declaring all income sources, including side jobs, freelance work, rental income and interest earnings.
Challen noted that different types of income attract different deduction rules, and taxpayers should consult official guidance or registered professionals where necessary.
Examples of Legitimate Claims

The ATO highlighted that some lesser-known deductions may still be valid, depending on occupation. These include:
Specific footwear for flight attendants where required by employers
Guard dog expenses for security personnel
Sunscreen and protective gear for outdoor workers
Professional tools such as scissors for hairdressers

To assist taxpayers, the ATO is promoting tools such as the myDeductions feature in its mobile app, as well as support programs including Tax Help and the National Tax Clinic initiative.
Taxpayers are also encouraged to review their superannuation details ahead of the introduction of upcoming reforms, including changes scheduled to take effect from July 1, 2026.

The ATO says getting tax returns right the first time will help avoid unnecessary amendments and compliance issues.
Officials are urging Australians to rely on verified sources and professional advice rather than unverified online content as they prepare their returns.