The ATO has released a list of deductions they are cracking down on this year.
Speaking to news.com.au, Mark Chapman, director of tax communications with H&R Block said people earning an extra income through economy platforms such as Uber and Airbnb will be in the spotlight.
"The main thing to be aware of is if you’re in the sharing economy, driving an Uber or renting an Airbnb, you do have tax obligations,” Chapman said. "There are a surprising number of people who don’t realise. You can also claim tax deductions as well, so it’s not all bad news."
Additionally, the ATO is also focusing on excessive work-related expenses.
"[Being audited] happens in a minority of cases, so it’s not something that’s likely unless your claims are significantly out of line with a typical claim, but it’s probably not worth taking the chance," said Chapman.
"The ATO has very clear benchmarks about what people in particular professions should be claiming. If your claims are significantly outside of the benchmark, increasingly they will ask for substantiation.
"The ATO can levy a penalty of anywhere between 25-95 per cent of the unpaid tax, depending on your degree of culpability, and there’s also interest, so it can work out quite expensive."