Ah, tax time—where spreadsheets come alive, receipts appear in coat pockets from 2021, and the ATO quietly reminds us: “We’re watching.” Yes, in 2025 the Australian Taxation Office has more tech, more data, and more curiosity than ever. But fear not—if you’re not doing anything dodgy, you’re probably fine. Probably.
Here’s a breakdown of what’s raising eyebrows at the ATO this year, and how to make sure your name isn’t the one they highlight in bold.
1. Unreported Side Hustles (Yes, Even Your Dog-Walking Money)
Think your weekend Etsy sales or cash-from-dog-sitting gig is flying under the radar? Think again. The ATO is now cozying up with platforms like Uber, Airtasker, Airbnb, and Etsy like they’re old mates at the pub. They're data-matching like it’s a professional sport.
If you earned income, report it. Yes—even that $200 you made flipping sneakers online. The ATO knows. And no, “It was just a hobby” isn’t a valid excuse anymore—unless your “hobby” didn’t involve payment.
2. Work-Related Deductions That Smell a Bit… Off
The ATO has been seeing a few too many “home office renovations” and “entertainment-as-training” claims lately. You might think that claiming a new gaming chair is legit because it boosts your productivity—but unless your job title is Esports Accountant, it probably won’t fly.
Claim what’s reasonable. Claim what’s real. And maybe hold off on trying to deduct your Labradoodle as a “security expense.” It’s funny, but not tax-compliant.
3. Crypto and Share Trading: Yes, They’re Watching That Too
Still under the illusion that crypto is anonymous and off-grid? So were the people who bought Dogecoin at its peak. The ATO is now tapping into crypto exchanges like it’s checking your Netflix history—every buy, sell, and weird altcoin transaction is logged.
Even staking, airdrops, and transferring coins between wallets can count. Basically, if you moved digital coins and made (or lost) money, it needs to be reported. Same goes for shares—especially if you went full ‘day-trader’ during your lunch breaks.
4. Cash-Heavy Businesses: The Old-School Suspects
If you run a café, salon, or you’re a tradie still operating largely in cash—welcome to the high-risk club. The ATO loves this group. Why? Because cash is hard to trace, and people sometimes “forget” to report it. (Oops.)
They use benchmarks to compare you with others in your industry. If you’re a barber reporting $15,000 revenue per year and three Ferraris in your driveway, they’ll probably notice.
5. Trusts: Not-So-Trusting Anymore
Using a trust to “split” income between Grandma, the kids, and your dog has been a favourite Aussie tax move for years. But 2025 is different. The ATO is now laser-focused on discretionary trusts and especially distributions made to family members who mysteriously “receive” income they’ve never heard of.
They’re eyeing Section 100A like a hawk—so if you’re using a trust, make sure you’ve got your resolutions in place, your paperwork tidy, and your logic straight. No more mystery money to your cousin in Bali.
6. Rental Properties: The Negative Gearing Minefield
Property owners are famous for claiming everything from mortgage interest to a new doorknob as a deduction. But the ATO is now comparing your reported rental income with actual market data, council records, and even your bank loan.
So, unless you genuinely had a tenant from hell who cost you $9,000 in repairs and an emotional breakdown, don’t overclaim. They’ll know. And they probably won’t be sympathetic.
7. Super Contributions: When Too Much of a Good Thing Backfires
Maxing out your super is great... until you accidentally go over the concessional cap and get hit with extra tax. Or, surprise! You triggered Division 293 because your income crept past $250K.
The ATO is watching super flows very closely—so if you’re salary-sacrificing, making personal contributions, and receiving employer payments across multiple funds, double-check. Super is meant to be a tax-saving vehicle—not a tax-time trap.
How to Stay Audit-Resistant (and Sleep at Night)
Want to avoid the stress of an audit? It’s not rocket science:
The ATO doesn’t care what Dave does. They care what you do.
Stay Smart, Stay Sane
Audits aren’t the end of the world. But let’s be honest—no one wants one. A little planning, a dash of common sense, and a decent accountant can go a long way in keeping the ATO off your back and out of your inbox.
If you're unsure about anything, reach out. Better to ask now than explain later.
