Latest news with #JennyWong
Daily Mail
11 hours ago
- Business
- Daily Mail
Urgent warning to Aussies with a side hustle from UberEats delivery drivers to OnlyFans models
Australians working side hustle jobs are set to get a rude tax bill as the government cracks down on gig economy roles. The Australian Taxation Office is now directly contacting digital platforms to identify potential income taxpayers - meaning those with a side hustle can no longer hide. CPA Australia, which represents Certified Practising Accountants, warned the ATO's new sharing economy reporting regime was targeting everyone from social media influencers to food deliverers. Jenny Wong, the group's tax lead, said this meant Australians doing gig economy jobs with the likes of UberEats, DoorDash, Airtasker, YouTube and even OnlyFans risked a big tax bill if they failed to declare their income from these platforms. 'Until this year, individuals have been required to self-declare the income from their side-hustles,' she said. 'Now nothing will go under the radar. If you deliver food with DoorDash, work some casual jobs through Airtasker, or make content for Patreon, YouTube or OnlyFans, these sites are now reporting your earnings to the tax office. 'Though people might not consider earnings from digital platforms as income in the same way as their regular job, it is all viewed the same way by the ATO. 'Chances are that many people have simply not been declaring this income at tax time. That all changes now.' Ms Wong said the tax office was also targeting those who rented out items online. 'If you use a website to rent out a car parking space or your designer handbag, this income will be recorded, and you'll need to pay tax,' she said. The tax office's sharing economy reporting regime is expanding, meaning it will now be aware of all income earned from gig economy jobs in the 2024-25 financial year, above the $18,200 tax-free threshold. 'So, if you've had a successful year earning money through advertising revenue and streaming subscriptions, as well as through gifts and gratuities, the ATO will be expecting you to cough up,' she said. 'Yes, this even includes free cars, holidays, clothes and anything else you're lucky enough to receive as a form of payment. 'Depending on how much you've earned during the year, this could be a significant amount, maybe even tens of thousands of dollars.' What can be claimed on tax? Australian workers can claim items worth up to $300 in one financial year if they are used exclusively for work purposes, including a handbag used to carry a laptop computer and home office furniture. But H&R Block's director of tax communications Mark Chapman said these items had to be used to generate an income. 'Let's be clear: to claim items like bags or sunglasses, they must be used in the course of earning income; and if there's any personal use, only the work-related portion can be claimed. And as always, records are essential,' he said. 'Items of capital equipment (such as furniture, computers and associated hardware and software) which cost less than $300 can be written off in full immediately.' Australians working from home can claim 70 cents an hour on their tax, as a fixed rate claim method, provided they had proof since July 2024, in the form of diary entries, rosters or time sheets. Purchases made before June 30 can also be claimed as a tax deduction. 'With many retailers running end of financial year specials, any purchases you make now can be deducted in this year's tax return so from a cash flow point of view, you can minimise the time between purchase and tax deduction,' Mr Chapman said. What's the biggest misunderstanding about tax claims? Tax planning accountant Ben Johnston, a director of Johnston Advisory, said he had encountered many Australians during his three-decade career who thought the entire cost of a work-related item could be claimed on tax - because of those end of financial year sale campaigns on television. 'The benefits of tax deductions are so overstated where leading into the financial year - Officeworks, Dick Smith, Harvey Norman - all encouraging and really making people have urgency to spend money where it's actually really dumb to spend money to save tax,' he told Daily Mail Australia. 'Our tax system confuses and misleads people to spend money they don't need to just to save tax. 'A lot of people think they spend $10 on stationery and they get $10 back in tax when in fact they might be lucky to get $3.20 back. 'The notion of something being a hundred per cent tax deductible gets confused with being 100 per cent refundable and it's so false and retailers really prey on it.' Mr Johnston said he was frustrated by how many people didn't realise a tax claim simply reduced someone's taxable income. This led to them spending money falsely hoping to save money, even if it didn't necessarily put them into a lower marginal tax bracket. 'A refund's actually a false economy in a lot of ways - a lot of people don't understand that,' he said. 'Someone earning $200,000 a year - the most they get back out of that $10 is $4.70. 'If you're an apprentice, that hasn't worked a full year or only earned under $20,000, you spent $10, they get no money back because they don't pay tax. 'You only spend money on what you need for work - if you spend money incentivised for tax, then you're stupid; you're only getting a proportion of it back based on what your tax bracket is.'
News.com.au
3 days ago
- Business
- News.com.au
ATO's dragnet: Millions of side hustles face shock tax bill
The tax office now sees everything you earn from Airbnb, Uber, OnlyFans and property investments – and their AI system is ready to flag thousands of Aussies side hustlers who don't declare it all. New reporting regimes will see the Australian Taxation Office have its strongest indication yet in 2025 of individual's sources of wealth across a dozen different types of third-parties including online marketplaces, cryptocurrency providers and share economy providers – with AI data-matching expected to flag all discrepancies. The ATO's new system can now see transactions as small as a $50 car space rental, a $100 Airtasker job or a weekend Airbnb rental – and match them to names, birth dates, and tax file numbers. Govt pays $3.3m for unliveable derelict house CPA Australia tax lead Jenny Wong said the gig economy was now reporting incomes directly to the ATO which could see some in for a shock bill this year. She warned anyone who doesn't report money earned through online platforms and pay tax on those amounts risked an amended return, extra tax bill and penalties. 'Until this year, individuals have been required to self-declare the income from their side-hustles. Now nothing will go under the radar. If you deliver food with DoorDash, work some casual jobs through Airtasker, or make content for Patreon, YouTube or OnlyFans, these sites are now reporting your earnings to the tax office.' The data-matching warning applies right down to even renting out a car space for a night, let alone a spare room or your investment unit. 'These rules apply to a broad range of services, not just the most well-known. If you use a website to rent out a carparking space or your designer handbag, this income will be recorded, and you'll need to pay tax.' Culture Kings founders' bold $30m push Property investors will face the highest scrutiny under the new system, with the ATO now cross-referencing not just data from bank accounts, property managers and insurance companies, but also those off rental platforms and sharing economy apps. 'You can claim an immediate deduction for some expenses in the income year you incur them provided your property is rented or genuinely available for rent,' an ATO statement said – though the cost must be paid by you not your tenant or someone else and you must keep adequate records for evidence. Ms Wong reserved the biggest warning influencers and those who have had a strong year of earning activity through sites like YouTube and OnlyFans, and said influencers have an obligation to declare any gifts and gratuities received as a form of payment. 'You must pay tax on income you earn above the tax-free threshold of $18,200,' she said. 'So, if you've had a successful year earning money through advertising revenue and streaming subscriptions, as well as through gifts and gratuities, the ATO will be expecting you to cough up. Yes, this even includes free cars, holidays, clothes and anything else you're lucky enough to receive as a form of payment.' Those amounts due to the tax office could run into the tens of thousands, she warned, 'depending on how much you've earned during the year'. This as ATO warned wild claims and missed income declarations were in its sights this tax return season. Among the areas in the hunt were interest and investment income, employment income, government payments, capital gains tax from the disposal of shares and property, employment-related foreign source income, taxable government grants and payments, payments made to contractors in the building and construction industry, private health fund information and distributions from a favoured source for many investors: partnerships, trusts and managed funds. CPA Australia's tips for gig economy workers: - Declare all income: Ensure that all earnings are reported in your tax return, regardless of the amount or frequency. This includes gifts and gratuities. - Maintain accurate records: Keep detailed records of income and expenses to support your deduction claims. - Understand your obligations: Familiarise yourself with your tax requirements, including ABN registration and GST obligations if applicable. - Seek professional advice: Consider consulting a professional tax agent like a CPA to navigate your tax affairs and ensure compliance.
Courier-Mail
3 days ago
- Business
- Courier-Mail
ATO's dragnet: Millions of side hustles face shock tax bill
The tax office now sees everything you earn from Airbnb, Uber, OnlyFans and property investments – and their AI system is ready to flag thousands of Aussies side hustlers who don't declare it all. New reporting regimes will see the Australian Taxation Office have its strongest indication yet in 2025 of individual's sources of wealth across a dozen different types of third-parties including online marketplaces, cryptocurrency providers and share economy providers – with AI data-matching expected to flag all discrepancies. The ATO's new system can now see transactions as small as a $50 car space rental, a $100 Airtasker job or a weekend Airbnb rental – and match them to names, birth dates, and tax file numbers. MORE: Cash-strap student turns $40k to 38 homes Govt pays $3.3m for unliveable derelict house MORE: Rate cut windfall: Aus big bank's shock new forecast Shock as city's distressed home listings surge 36pc in one month CPA Australia tax lead Jenny Wong said the gig economy was now reporting incomes directly to the ATO which could see some in for a shock bill this year. She warned anyone who doesn't report money earned through online platforms and pay tax on those amounts risked an amended return, extra tax bill and penalties. 'Until this year, individuals have been required to self-declare the income from their side-hustles. Now nothing will go under the radar. If you deliver food with DoorDash, work some casual jobs through Airtasker, or make content for Patreon, YouTube or OnlyFans, these sites are now reporting your earnings to the tax office.' The data-matching warning applies right down to even renting out a car space for a night, let alone a spare room or your investment unit. 'These rules apply to a broad range of services, not just the most well-known. If you use a website to rent out a carparking space or your designer handbag, this income will be recorded, and you'll need to pay tax.' MORE: Buyer of $12m mansion plans to give it away Culture Kings founders' bold $30m push Property investors will face the highest scrutiny under the new system, with the ATO now cross-referencing not just data from bank accounts, property managers and insurance companies, but also those off rental platforms and sharing economy apps. 'You can claim an immediate deduction for some expenses in the income year you incur them provided your property is rented or genuinely available for rent,' an ATO statement said – though the cost must be paid by you not your tenant or someone else and you must keep adequate records for evidence. Ms Wong reserved the biggest warning influencers and those who have had a strong year of earning activity through sites like YouTube and OnlyFans, and said influencers have an obligation to declare any gifts and gratuities received as a form of payment. 'You must pay tax on income you earn above the tax-free threshold of $18,200,' she said. 'So, if you've had a successful year earning money through advertising revenue and streaming subscriptions, as well as through gifts and gratuities, the ATO will be expecting you to cough up. Yes, this even includes free cars, holidays, clothes and anything else you're lucky enough to receive as a form of payment.' Those amounts due to the tax office could run into the tens of thousands, she warned, 'depending on how much you've earned during the year'. This as ATO warned wild claims and missed income declarations were in its sights this tax return season. Among the areas in the hunt were interest and investment income, employment income, government payments, capital gains tax from the disposal of shares and property, employment-related foreign source income, taxable government grants and payments, payments made to contractors in the building and construction industry, private health fund information and distributions from a favoured source for many investors: partnerships, trusts and managed funds. CPA Australia's tips for gig economy workers: – Declare all income: Ensure that all earnings are reported in your tax return, regardless of the amount or frequency. This includes gifts and gratuities. – Maintain accurate records: Keep detailed records of income and expenses to support your deduction claims. – Understand your obligations: Familiarise yourself with your tax requirements, including ABN registration and GST obligations if applicable. – Seek professional advice: Consider consulting a professional tax agent like a CPA to navigate your tax affairs and ensure compliance. (Source: CPA Australia) MORE REAL ESTATE NEWS
Perth Now
10-06-2025
- Business
- Perth Now
Don't do this first thing in the morning
Australians preparing for tax season have been warned to be watchful for early-morning scams designed to catch them off guard. Taxpayers should expect a deluge of scam activity ahead of June 30, as cunning crooks impersonate the Australian Taxation Office (ATO) in emails and texts. CPA Australia tax lead Jenny Wong warned the public that these communications could often be sent overnight, designed to catch people out before they'd had their morning coffee. 'These 'phishing' scams not only look legitimate, but they're designed to catch you off guard. That's why you'll often see them arrive first thing in the morning because you may be more likely to have a momentary lapse in judgment,' Ms Wong said. 'The scammers know Australians will have tax on their mind and are vulnerable to prompts to act, which is why these messages usually create a sense of urgency or claim of significant refund. 'While they could come at any time, be especially careful opening up and reading messages while you're still waking up in the morning.' Taxpayers have been warned to have their morning coffee before looking at any tax communications. NewsWire / Andrew Henshaw Credit: News Corp Australia Scam emails impersonating the ATO have titles including 'Urgent new notification in your account inbox', directing unsuspecting people to log into their myGov account through a fake link. ATO data shows a huge rise in this type of impersonation scam, up by more than 300 per cent in the past year. The ATO said more scam messages were generally sent during tax time, as scammers tend to know taxpayers expect communications from the tax office. To avoid falling prey to these scams, people have been warned to look for grammatical errors such as Americanised spellings in communications. Impersonation scam losses have increased massively this year. NewsWire / Nicholas Eagar Credit: NCA NewsWire Other signs of scams are hyperlinks in unsolicited text messages, anomalies in the sender's email address, and requests for urgent personal or financial information. The National Anti-Scam Centre reports that Australians have lost $13.7m in impersonation scams since the start of the year compared with $4.6m for the same period last year.
News.com.au
10-06-2025
- Business
- News.com.au
Impersonation scams sent in the early hours are designed to catch taxpayers off guard, accountants warn
Australians preparing for tax season have been warned to be watchful for early-morning scams designed to catch them off guard. Taxpayers should expect a deluge of scam activity ahead of June 30, as cunning crooks impersonate the Australian Taxation Office (ATO) in emails and texts. CPA Australia tax lead Jenny Wong warned the public that these communications could often be sent overnight, designed to catch people out before they'd had their morning coffee. 'These 'phishing' scams not only look legitimate, but they're designed to catch you off guard. That's why you'll often see them arrive first thing in the morning because you may be more likely to have a momentary lapse in judgment,' Ms Wong said. 'The scammers know Australians will have tax on their mind and are vulnerable to prompts to act, which is why these messages usually create a sense of urgency or claim of significant refund. 'While they could come at any time, be especially careful opening up and reading messages while you're still waking up in the morning.' Scam emails impersonating the ATO have titles including 'Urgent new notification in your account inbox', directing unsuspecting people to log into their myGov account through a fake link. ATO data shows a huge rise in this type of impersonation scam, up by more than 300 per cent in the past year. The ATO said more scam messages were generally sent during tax time, as scammers tend to know taxpayers expect communications from the tax office. To avoid falling prey to these scams, people have been warned to look for grammatical errors such as Americanised spellings in communications. Other signs of scams are hyperlinks in unsolicited text messages, anomalies in the sender's email address, and requests for urgent personal or financial information. The National Anti-Scam Centre reports that Australians have lost $13.7m in impersonation scams since the start of the year compared with $4.6m for the same period last year.
