Lodging your tax return each year might seem like a simple task, but for many taxpayers—especially migrants or those with multiple income sources—it’s easy to make mistakes that delay your refund or even trigger an ATO audit.
Whether you’re claiming deductions, reporting income, or just trying to submit your bank details, even a small error can cause big problems.
At Boa & Co. Chartered Accountants, we help individuals and business owners get their tax returns right the first time—so you avoid costly delays and penalties. Here are five of the most common mistakes we see, and how to steer clear of them:
1. Wrong or Incomplete Bank Account Details
This is more common than you think. If you accidentally enter the wrong bank account number when lodging your return, your tax refund may:
- Bounce back to the ATO, causing delays
- Or worse, get deposited into someone else’s account
If this happens, your bank can’t help you. You’ll need to contact the ATO directly—and recovery can take weeks, if not months. Always double-check your BSB and account number before lodging.
2. Missing or Incorrect Income Reporting
Many people forget to include income sources outside their regular job. These might include:
- Bank interest (especially from joint or foreign accounts)
- Capital gains from shares or property sales
- Dividends from private companies
- Employee share schemes or trust distributions
Forgetting to report even a small amount can cause your return to be flagged by the ATO, potentially resulting in penalties or reassessment. The ATO uses sophisticated data-matching tools, so it’s important to declare everything accurately.
3. Not Reporting Overseas Income or Capital Gains
This is especially relevant for new migrants or Australian residents with foreign assets. Many don’t realise they must report worldwide income on their Australian tax return, including:
- Rent from overseas properties
- Dividends or capital gains from foreign shares
- Proceeds from selling overseas property
For example, if you sell your apartment in China or receive rent from a property in Malaysia, you must declare that income—even if it was taxed overseas. Failing to report foreign income can result in double taxation, penalties, or audits.
4. Claiming Deductions Without Proper Proof
Yes, you can claim work-related deductions—but only if you have proper records. That includes:
- Receipts for purchases (e.g. uniforms, tools, subscriptions)
- Car logbooks and mileage records
- Documentation for home office hours and costs
If you claim deductions without supporting documents, the ATO may deny your claims, and you could end up owing tax—plus interest and penalties. If your expenses seem too high for your profession, the ATO’s systems may also flag your return for review.
5. Overestimating or Misclassifying Personal Expenses as Work-Related
It’s easy to get carried away and try to maximise deductions—but be careful:
- Claiming the full cost of a mobile phone or laptop when only part of it is used for work
- Including travel or meals that were actually personal in nature
- Guessing usage percentages instead of calculating them properly
Only the work-related portion of an expense is deductible. Guesswork can lead to overclaims, rejected deductions, and unwanted ATO attention.
Conclusion: Let’s Get It Right, Together
Tax season doesn’t need to be stressful or risky. With proper guidance and accurate reporting, your return can be lodged confidently—without fear of mistakes, delays, or audits.
At Boa & Co. Chartered Accountants, we take care of the details so you don’t have to. Whether it’s your first Australian tax return or you’ve been here for years, we’ll ensure your return is compliant, accurate, and optimised for the best result.
Want to avoid tax return mistakes this year? Speak to our expert team today.
Call us on 1300 952 286, email [email protected], or visit www.boanco.com.au to get started.