Whilst the ATO expected a jump in home office expenses, they are expecting certain deductions, such as travel and car expenses, laundering uniforms and business trips, to reduce.
The ATO will be paying close attention to how people apportion items such as internet and telephone costs between private and business use, and expect people to keep good records of the number of hours worked at home.
And further to the compliance burden, the ATO has almost 40 occupation and industry guides outlining the work-related expenses people working in these occupations can and cannot claim deductions for.
Nonetheless, this year the ATO will be focusing on property loans to ensure any private use components are excluded from interest claims.
The gig economy is also in the firing line as the ATO ramps up substantiation requirements through audit to ensure the correct apportionment of expenses are claimed for properties let through platforms like Airbnb and Stayz.
It is also writing to about 100,000 taxpayers with cryptocurrency assets explaining their tax obligations and urging them to review their previously lodged returns.