Most ATO contact starts as a review, not an audit.
Reviews are information-led. If you’re fast, factual, and focused, they often end quickly.
Why you might be selected
Data the ATO matches (typical sources)
- Banks & card processors, STP payroll, super funds (SG payments).
- Land titles & property managers (rental income, bond data, agent statements).
- Platforms: Commsec/HUB24, rideshare/food delivery, short-stay (e.g., holiday rentals), online marketplaces.
- Crypto exchanges (KYC + transaction history).
- Motor vehicle registries & insurers (luxury assets), international data (CRS/FATCA).
Risk indicators we see often
- Work-related expenses well above peers; claims without logs (car/WFH/phone).
- Rental property mismatches: interest not apportioned, “repairs” that are capital, low private-use apportionment for holiday homes, or rent not aligning with agent statements.
- GST: large or repeated refunds, BAS totals not matching annual figures, cash-heavy trades with weak records.
- Payroll & super: late/under-paid SG, STP finalisation gaps, contractor vs employee inconsistencies.
- Trusts & private groups: distributions to low-tax family members with cash retained elsewhere; Div 7A/shareholder loans not managed; private use of company assets without FBT treatment.
- Cross-border: foreign income not reported, residency facts vs lodgment position misaligned.
What a review looks like
Contact → info request → clarifications → outcome
- You’ll get a letter/email outlining focus areas and a response date.
- They may ask for specific documents or an e-audit extract from your accounting system.
- If issues remain, it can escalate to audit; if explained well, it often finalises here.
What to do in the first 48 hours
- Nominate one contact (usually your tax agent – i.e. your JTCA manager). Confirm scope, timeline, format.
- Build a document list that maps each request to exact evidence (invoice, contract, log, ledger).
- Be precise: provide relevant items only, complete and on time.
- Use voluntary disclosure early if you spot an error—fix it before it becomes a finding.
- Keep a review log (who/what/when). After calls, email a summary to confirm.
Do / Don’t
- Do tie every number to a source (bank → invoice → ledger → return).
- Do explain anomalies with short notes and calculations.
- Don’t send “everything” — noise creates questions.
- Don’t guess on calls — say you’ll confirm in writing.
Be review-ready all year
- Records: keep clear receipts/logs for at least 5 years; scans are fine if readable.
- Reconcile: bank, payroll, BAS/GST, loan statements; align BAS and annual figures.
- Apportion mixed-use costs (car, phone, home office) and keep usage evidence.
- Separate business vs personal spending; keep contracts, leases, policies on file.
- Payroll & SG: pay on time; finalise STP accurately.
- System-ready: ensure your accounting file can export a clean e-audit dataset.
- Pre-flight checks each year on: WRE, rentals, GST refunds, trust distributions, Div7A/FBT, crypto/foreign income.
Quick self-check (60 seconds)
- Can I prove my top 5 claims with receipts/logs and a simple calc?
- Do BAS totals match year-end figures?
- Are SG payments on time and STP finalised?
- Are rental interest/repairs correctly classified and apportioned?
- Any trust or shareholder loans properly documented (Div7A/FBT considered)?
Need JTCA total accounting and tax solution? Or need help handling or pre-empting an ATO review?
Book a 15-minute Review Readiness chat: (03) 9008 9186 • info@jtca.com.au • jtca.com.au
