Geelong accountant urges taxpayers to avoid costly mistakes as ATO cracks down

TAX time has arrived, and with the Australian Taxation Office (ATO) increasing its oversight, Geelong residents are being reminded to lodge returns before the October deadline.

Geelong Accounting principal senior accountant and registered tax agent Kelly Jenkins said filing returns correctly and on time is more important than ever.

She said the ATO has become “vicious” in enforcing deadlines and pursuing missed returns.

“I keep telling my clients it’s like a wild animal that was caged and suddenly been released,” Jenkins said. “General interest charges are no longer tax deductible, late fines are everywhere, and we as accountants can’t get clients out of them anymore. If you get a late fine, there’s a very, very good chance you will have to pay it.”

Late penalties can reach thousands of dollars for individuals and are now being applied even to some tax returns eligible for refunds.

Jenkins said her firm is helping clients who have been hit with thousands of dollars’ worth of fines already.

People with straightforward returns can lodge themselves through the ATO website, but Jenkins encouraged those with deductions or multiple income sources to consider using an accountant.

Accountants can also provide advice on what expenses may be claimable for different occupations.

Uniforms, clothing and vehicle use remain commonly misunderstood areas.

“It can’t be an average everyday item,” Jenkins said. “You cannot claim sneakers, but you can claim work boots because they are protective gear.

“I’ve had arguments with builders before that they want to wear shorts and claim shorts but they’re not protecting you, so you can’t claim it is protective.”

But uniforms with logos and fluorescent jackets may be claimable, as are some vehicle expenses beyond regular travel between home and work.

Jenkins said another common misconception is trying to claim GoFundMe donations or purchases from charities as tax deductions.

Tax-deductible donations must be made to a registered deductible gift recipient, and donors cannot receive goods or services in return.

People working from home can also claim expenses but must have kept records of their hours worked from home during the financial year.

Jenkins said people completing their own returns may miss eligible deductions or incorrectly claim expenses that are also used personally.

“The best thing you can do is be really honest about it, because then you can claim the correct things and there will be no problems,” she said.

For people with overdue returns, Jenkins said lodging them this year should be a priority.

She also encouraged taxpayers to check their accountant is a registered tax agent, as it is illegal for an unregistered agent to prepare a return on someone’s behalf.

Tax returns are due before 31 October, unless booked via a tax agent before that date.

Jenkins also encouraged people to start tracking their 2026–27 expenses, kilometres and work from home hours immediately so they are better prepared next July.