ATO sends warning letters to hundreds of thousands ahead of tax time

The Australian Taxation Office has begun sending pre-emptive letters to hundreds of thousands of taxpayers ahead of the July 1 lodgement window, warning that work-from-home deductions and side-hustle income will face closer scrutiny this year.

For Canberra, where the ATO's national headquarters sits on Constitution Avenue and roughly one in four residents works for the Commonwealth, the message lands close to home. The ACT consistently records among the highest average taxable incomes in the country, and the ATO says the territory also flags above-average rates of work-related expense claims.

The letters focus on three areas: inflated work-from-home running costs, car expenses claimed without a logbook, and undeclared platform income from gig economy and short-stay rental services. Taxpayers who received a letter are not under audit but are being asked to review their records before lodging.

Local tax agents in Woden and Belconnen report a spike in early bookings this week. H&R Block's Canberra manager told What's On Canberra that walk-in demand at the Woden Plaza branch is running about 20 per cent above the same week last year, with most queries about the revised 67-cent fixed-rate method for home office claims.

The ATO's Canberra shopfront at 21 Genge Street, Civic, is open for drop-in enquiries weekdays 8:30am to 4:45pm. The myGov pre-fill service typically goes live in the second week of July.