Granular data for deductions mandatory from 1 July
From 1 July, the ATO will receive the line entry deduction data, also known as granular data, which will include details on all work-related expenses.
Although most agents are already supplying this level of detail, granular data for deductions will be required across the board from 1 July, through the practitioner lodgment service (PLS).
The ATO explained that granular data will be introduced in software by digital service providers in a phased approach.
A new multi-property rental schedule for individuals may be available from tax time 2019, but will be mandatory from tax time 2020.
Furthermore, new income schedule and updated capital gains tax and non-resident foreign income schedules will also be mandatory from tax time 2020.
Granular data will enable the Tax Office to identify honest mistakes, further refine its risk models, and identify, monitor and take firm action against agents who are intentionally doing the wrong thing.
It will also allow tax agents to see a greater level of detail for their clients’ historical returns, from their previous agents as well as myTax.