The ATO says it will be scrutinising every tax return lodged for the past financial year and deploying updated hi-tech cross-checking systems to weed out inaccurate or outright fraudulent deductions.
Assistant tax commissioner Karen Foat told the ABC it is a never-ending race to keep up with tax evaders who even create elaborate websites to fake work records and receipts.
"We know that some people think it's okay to overclaim their deductions even by just a little. But our message is — that's not okay," Ms Foat said.
"A lot of people overclaiming by just a small amount adds up to $8.7 billion less each year for essential services and we can't turn a blind eye to that.
"Some people fess up straight away but some people continue the lie. But it's just better to be honest with us even if you've done the wrong thing; it will be a much less painful experience."
Each year, the ATO contacts around 2 million taxpayers about their returns and this year sophisticated cross-matching analytics will be once again used to identify tax cheats or people who make innocent mistakes.
"That can range from just a quick contact to raise questions about missing income all the way through to an audit," Ms Foat said.
"We see behaviours ranging from genuine mistakes through to deliberate overclaiming. In the most extreme cases of intentional fraud, we may seek to prosecute through the courts."
Key points:
- Each year, the ATO contacts around 2 million taxpayers about their returns
- This year, cross-matching analytics will be used again to identify tax cheats or people who make innocent mistakes
- The president of the Tax Institute said anyone caught up in an ATO audit should be wary
