2025 ATO Audit Focus: Industries Most at Risk and How to Protect Your Business
The Australian Taxation Office (ATO) has made it clear: 2025 is a major enforcement year. With increased funding, AI-powered data matching, and new reporting obligations, the ATO is focused on ensuring tax compliance across several high-risk areas.
Here are the top compliance targets in 2025, and how you can stay off the ATO’s radar.
1. Crypto Investors and Traders
The ATO is continuing its data-matching program with crypto exchanges, which includes transaction data, wallet addresses, staking rewards, airdrops, and NFTs.
What’s under scrutiny:
Undeclared crypto profits or token swaps
Missing staking or DeFi income
Poor or missing transaction records
How to stay compliant:
Keep detailed records of every trade, swap, and stake
Understand the CGT implications of each transaction
Include staking and reward income in your tax return
2. Gig Economy and Side Hustles
Under the Sharing Economy Reporting Regime (SERR), platforms like Uber, Airtasker, Airbnb, OnlyFans, and other marketplaces must now report user earnings directly to the ATO.
What’s under scrutiny:
Failure to declare platform income
No ABN or incorrect GST status
Personal expenses incorrectly claimed
How to stay compliant:
Report all income from gig and platform work, even side hustles
Ensure you’re registered for an ABN (and GST if required)
Track and separate business vs personal expenses
3. Rental Property Owners
The ATO is matching data from real estate platforms, bond lodgements, and Airbnb to flag inaccurate rental claims.
What’s under scrutiny:
Overclaimed interest deductions
Incorrect apportionment of expenses
Missing short-term rental income
How to stay compliant:
Keep accurate rental records and receipts
Apportion expenses correctly (especially if property is partly private use)
Declare all income from short-term lettings and subleases
4. Work-From-Home Claims
The ATO is focusing on inflated work-from-home deductions, especially where taxpayers use the fixed-rate (70c/hour) method without proper records.
What’s under scrutiny:
Claims with no daily logbook or timesheets
Combining fixed-rate and actual expense claims incorrectly
Claiming private-use items
How to stay compliant:
Keep a 4-week representative diary or full-year log
Only claim eligible home office expenses
Use one method (fixed-rate or actual) consistently and correctly
5. Shadow Economy Activity (e.g. Cash Jobs, Personal Trading)
While not targeting tradies specifically, the ATO continues its focus on cash-based businesses and undeclared income.
What’s under scrutiny:
Unreported business income
Using personal bank accounts for business
Failing to lodge BAS or PAYG on time
How to stay compliant:
Declare all income, including cash
Use separate accounts for business
Lodge all statements on time, even with no activity
How to Stay Ahead of the ATO in 2025
Track income and deductions as they happen
Use tax-deductible apps to manage records
Register your business properly (ABN, GST, PAYG)
Don’t claim anything you can’t justify
Get advice from a tax advisor who knows your industry
Need Expert Advice?
At Dolman Bateman, we help crypto investors, digital creators, gig workers, and property owners stay compliant while maximising tax outcomes.
📞 to get your 2025 tax sorted, before the ATO comes calling.
Disclaimer: The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.
