Your tax return will look a little different this year. Here's what you need to know

Working from home deductions have changed, as has the low and middle-income tax offset.

Changes to working from home are among several updates to how tax returns need to be filed this year. Source: AAP / Fabian Strauch/DPA

The Australian Taxation Office (ATO) has warned that fewer people are likely to receive a refund or may receive smaller refunds than expected.

That’s because the low and middle-income tax offset has expired.

It was available from 2019 to 2022 financial years and delivered as much as $1,500 in tax rebates, depending on how much you earn.

It's not the only thing changing when you file your tax return: here's what you need to know.

How are working from home deductions changing?

Changes to the way working from home deductions are calculated may come as an unpleasant surprise. Source: AAP / PR image

The first type of deduction the ATO will be looking out for is your working from home expenses.

H&R Block tax expert Mark Chapman said the 80-cent shortcut rate and the 52 cents per hour fixed rate method had been dumped in favour of a more complex and time-consuming alternative.

Those hoping to claim a deduction on the costs racked up by working from home, such as heating and new stationery, must now deal with a 67-cent fixed rate that comes with a tougher compliance regimen and a new mix of items that can be claimed.

Compared to the old system, which had few record-keeping requirements, taxpayers now have to produce schedules and time sheets of their working from home hours.

The new rate also includes a different mix of items, including phone usage and internet expenses, meaning they cannot be claimed separately.

The ATO said it’s unwise to copy and paste claims from last year because circumstances have likely changed as many employers ask some workers to return to the office.

"One key thing that has changed is you no longer need a dedicated workspace to access that method, so you could be working from the kitchen table, the dining table or the couch, and you can use that revised fixed rate method," ATO deputy commissioner Tim Loh told SBS News.

Taxpayers will have to fulfil more record-keeping requirements to claim working from home expenses. Source: SBS News

What are the changes to capital gains tax and rental property deductions?

Capital gains tax comes into effect when you dispose of assets like shares, cryptocurrencies, and properties.

People renting out rooms in their homes on short-term accommodation websites - may have capital gains consequences when they come to sell their place down the track.

Regarding rental properties, the ATO sometimes sees rental income being left out or other mistakes like overclaiming expenses or claiming for improvements like to private properties.

"We're seeing 9 out of 10 property investors get their rental deductions wrong, and 87 of those tax returns are done by tax agents, so what we're asking tax agents is to ask extra questions of their clients, and clients make sure they're giving all their records to their agent," Mr Loh said.

What other tax claims have changed?

If you're claiming work car travel - the rate has increased from 72 cents per kilometre to 78 cents per kilometre.

There's also a new benefit to self-education claims relating to work.

The ATO said at the end of the day, the responsibility of the tax return relies on the client.

Cultural and linguistically diverse communities are being encouraged to visit the ATO website, with some tax time resources translated into over 20 languages.

While there are some concerns that rising cost of living pressures may see some taxpayers fill out their annual income tax returns incorrectly, the ATO said to be cautious.

"You base your tax return on the evidence that you have and the supporting documents that you have," Mr Loh said.

"At the ATO, we have supercomputers and data analytics to review every single return, and if yours sticks out like a sore thumb, we'll be asking questions, so my advice is to make sure you've got documents and records in place to make sure you've got it right the first time."

The ATO is also reminding taxpayers not to rush lodging their returns from 1 July - and to wait for their income statement to be marked as tax ready to allow for some pre-filled information to be populated - to speed up the process.

In the meantime, you can make sure you've found all your receipts for the year.