There’s a dangerous sentence in Australian tax.
“Just claim as much as you can — that’s how you get a bigger refund.”
It’s a mistake newcomers from Korea make especially often. Coming from Korea’s employer-run year-end settlement, it feels like “throw in more receipts, get more back.” But an Australian tax return works a little differently.
Australia runs a self-assessment system. You lodge, and the ATO checks later whether it holds up. And these days the ATO already holds far more of your data than it used to.
Employer wages, bank interest, share dividends, private health cover, platform income, government payments — even overseas financial information — flow in through many channels. So the important question for a 2026 tax return isn’t “how much can I deduct?”
Can I explain the numbers I put down?
The short version
- The ATO data-matches employer, bank, platform, and overseas financial records
- What triggers a review isn’t a “big number” — it’s a number that doesn’t match your records
- Work-from-home, car travel, and side-gig income are the classic red flags
- Interest and dividends on Korean accounts can be assessable too, if you’re an Australian tax resident
- A legitimate deduction is nothing to fear. With records, a deduction becomes a shield
① How the ATO catches it — the age of matching
An audit used to feel like something that only happened to special cases: big businesses, big money, or bad luck in a random draw.
Not anymore. The ATO already receives a large amount of data automatically.
| Source | What the ATO can see |
|---|---|
| Employer STP | Wages, withholding, super |
| Banks | Interest income |
| Shares/funds | Dividends, distributions, some sale data |
| Private health | Medicare Levy Surcharge information |
| Platforms | Uber, DiDi, Airbnb, Airtasker, and more |
| Overseas finance | Foreign account and income data via CRS |
The point is simple.
If your return differs from the numbers the ATO already holds, it gets flagged — and you need to be able to explain the difference.
So the core of a 2026 return isn’t “reduce your deductions.” It’s only claim what you can prove.
② Red flag 1 — Work-from-home deductions
Work-from-home claims have been one of the most confusing items for years.
As remote work grew after COVID, a “well, I worked from home too, so I can just claim something” attitude crept in. But what the ATO looks at is straightforward.
- Were there hours you actually worked?
- Can you explain those hours with records?
WFH deductions are usually worked out using the fixed-rate method or the actual-cost method. Either way, you need records.
Documents that help, for example:
- A work calendar
- Timesheets
- Work-from-home approval records
- A work log
- Electricity, internet, and phone cost data
- Your employment contract or the company’s WFH policy
Risky claims look like this:
- “I worked from home maybe one day a week, but I claim as if I did it nearly every day.”
- “I don’t have a dedicated work area, but I claim a big share of the whole home’s costs.”
- “The company already reimbursed the cost, and I claim it again.”
You can claim WFH. But claim it on records of hours, not on a “feeling.”
③ Red flag 2 — Car and travel deductions
Car claims are another item the ATO looks at often. There’s a point Koreans often get wrong.
Commuting is, in principle, a private cost.
The trip from home to work and back is generally not deductible. It’s easy to think “I’m travelling for work, so it’s work-related,” but tax law mostly treats it as private travel.
Deductible cases are work travel — moving between two workplaces, visiting a client during the day, carrying equipment, and other specific conditions.
To claim car costs, you need records depending on the method.
| Method | Key records |
|---|---|
| Cents per kilometre | A basis for your work-kilometre calculation |
| Logbook method | A representative-period logbook, total kilometres, cost data |
The logbook method needs particular care. A number like “roughly 70% work use” is risky. You need at least a representative-period record, and that record has to match your actual work pattern.
Because car claims can add up fast, they easily become a red flag when you have nothing to explain them.
④ Red flag 3 — Missing side-gig income
Audits don’t only come from over-claiming deductions. The more dangerous issue is actually unreported income.
Many migrants today have income beyond their main job.
- Uber / DiDi driving
- Uber Eats / DoorDash delivery
- Airbnb / Stayz short-stay hosting
- Airtasker jobs
- Freelance design, translation, development
- Online selling
- Second-hand trading run like a repeat business
The problem is treating this as “small money.”
Under the Sharing Economy Reporting Regime (SERR), many platforms report transaction data to the ATO. Ride-share and short-stay came first, and it expanded to other platforms afterward.
Here’s what matters.
The ATO receiving platform data doesn’t automatically make your return complete. Some data arrives late in the pre-fill, or you may need to check it yourself. But the data can be on the ATO’s side.
So the mindset isn’t “they can’t see it, so I don’t need to include it” — it’s organising what you actually earned first.
Side income isn’t only about declaring the income. Related expenses can be considered too, when you have records.
- Vehicle costs
- Platform fees
- Equipment purchases
- Phone and internet
- Insurance
- Accounting fees
- Some home-office costs
It’s not about hiding income — it’s about organising income and expenses together.
⑤ Red flag 4 — Called a contractor, but really an employee
An important item for business owners and the self-employed.
In Australia, having an ABN and issuing invoices doesn’t automatically make you an independent contractor. If the way you actually work is the same as an employee’s, you can be treated as an employee.
What the ATO and Fair Work look at is not the label on the contract, but the real relationship.
These situations, for example, are risky:
- You work set hours at one company
- The company controls how and where the work is done
- You bear little profit-or-loss risk
- The company provides the equipment and systems
- You essentially work like an employee, just without leave
Handling this structure as a “contractor” can lead to problems with PAYG withholding, super, and worker entitlements.
The employer may have been trying to cut costs, and the worker may think they’re paying less tax. But when it becomes an issue later, it gets complicated for both sides.
⑥ Red flag 5 — An SMSF: it feels like your money, but you can’t use it freely
A self-managed super fund, an SMSF, is a structure that appeals to migrant investors and business owners. It’s also an area the ATO watches very closely.
The most dangerous misconception is this:
“It’s my super, so surely I can borrow from it for a bit?”
You can’t.
SMSF assets are retirement-purpose fund assets. Lending privately to yourself or family, using it like personal business capital, or improperly benefiting a related party can become a serious problem.
The ATO looks hard at illegal early access, related-party loans, and personal use of an SMSF in particular.
An SMSF can be a tax tool, but it’s also a structure with a high cost when the rules are breached. Approaching it “by following a YouTube video” without an accountant is risky.
An extra red flag for migrants with Korean assets
For Hanhomoney readers, there’s one more: Korean accounts and Korean financial income.
If you’re an Australian tax resident, you generally have to declare your worldwide income. Korean bank interest, Korean share dividends, rental income, and some capital gains can all be up for review.
“But I already paid tax in Korea?”
True. But that doesn’t mean you can skip the Australian filing.
Tax you paid in Korea may be recognised in Australia as a foreign income tax offset. That’s a different matter from omitting the declaration itself.
Korea and Australia also both participate in CRS, the automatic exchange of financial information. It means overseas financial-account data can be exchanged between tax authorities.
Migrants with Korean assets should look at their Korean records alongside the Australian return. (→ When do you become an Australian tax resident? · The Korea–Australia tax treaty and double taxation)
So what should you do — records are the shield
An audit doesn’t mean “don’t claim deductions.” Claim the legitimate ones. You just have to be able to explain that they’re legitimate.
| Item | Records you need |
|---|---|
| Work from home | Hours records, calendar, employer policy |
| Car | Work-travel records, logbook, cost receipts |
| Side gig | Platform income statements, expense receipts |
| Rental | Rental income, interest, repairs, management fees |
| Overseas income | Korean interest, dividends, withholding records |
| Super / SMSF | Accounting records, investment-decision records, fund-spending evidence |
A good tax return isn’t hunting for receipts all at once in July. It’s records that have built up all year long.
Pre-lodgement checklist
- Can you explain your work-from-home hours with actual records?
- Did you avoid mixing commuting into your car claim?
- Do you have a basis for your work-kilometre calculation?
- Did you include all your Uber, delivery, Airbnb, and Airtasker income?
- Did you organise side-gig expense receipts alongside the income?
- Are you an ABN contractor who actually works like an employee?
- Is there any personal use of SMSF funds?
- Did you review Korean interest, dividends, and rental income in your Australian return?
- Did you check that the ATO pre-fill matches your own records?
The bottom line
The ATO’s 2026 message is simple. It isn’t “claim less.” It’s only claim what you can prove.
If you really worked from home, you can claim it. If you really used a car for work, you can claim it. If you had a side gig, the related expenses can be considered too. But all of it depends on having records.
The Hanhomoney bottom line: the best shield in a tax return isn’t a receipt — it’s an explainable record.
Related reading
- Filing Your Australian Tax Return Early Can Cost You — 7 Mistakes Koreans Make Most
- What Changed in the 2026 Australian Tax Return
- When does tax start once you arrive in Australia?
- When do you become an Australian tax resident? · The Korea–Australia tax treaty and double taxation
Disclaimer: This article is general information, not personal tax advice. Whether a deduction is allowable, the record requirements, residency determination, and foreign-income reporting all depend on your circumstances. For your actual return, check with a Registered Tax Agent or the ATO.
Sources: ATO working from home expenses, ATO car expenses, ATO sharing economy reporting regime, ATO employee or contractor guidance, ATO SMSF illegal early access guidance, ATO foreign income and residency guidance.