15/06/2026
5 things that can put your return on the ATO’s radar
1️⃣ Income that doesn’t match what the ATO can already see
Cash sales, side income, crypto, overseas income, platform income — if it’s not reported properly, it can be picked up later.
➡️ The ATO uses data matching across banks, employers, digital platforms and other third-party sources.
2️⃣ Claims that are too high, private, or poorly documented
The ATO is paying close attention to businesses that over-claim expenses or try to pass private costs through the business.
➡️ Deductions must be connected to earning income and supported by records.
3️⃣ Cash-in-hand behaviour
Under-reporting cash income, paying workers off the books, or buying business items with undeclared cash are current ATO focus areas.
➡️ The ATO has specifically said it is cracking down on small businesses using cash to dodge tax and employer obligations.
4️⃣ GST claims that don’t stack up
Claiming GST credits without valid tax invoices or reporting BAS figures incorrectly can create problems quickly.
➡️ In general, you need a valid tax invoice to claim GST credits on purchases over $82.50, and BAS data can be checked against other information.
5️⃣ A lifestyle or asset position that doesn’t fit the income declared
If your disclosed income doesn’t line up with your assets, spending, or private use of business resources, that can attract attention.
➡️ The ATO can use indirect methods, including asset betterment, and has flagged concerns around lifestyle assets and private pursuits being treated as business activity.
